Update shared on 17 Dec 2025
Fair value Decreased 0.08%Analysts have nudged their price target on Adani Power slightly lower from ₹187.75 to ₹187.60, citing marginally softer long term profit margin assumptions that are only partly offset by a modestly lower discount rate and a slightly higher future earnings multiple.
What's in the News
- Adani Power plans to invest about INR 480,000 million in a 3,200 MW ultra super critical thermal power plant in Assam, aiming to expand base load capacity and support regional industrial demand (Key Developments).
- The Assam project is expected to create 20,000 to 25,000 jobs during construction and sustain around 3,500 jobs once operational, with phased commissioning targeted from December 2030 (Key Developments).
- Adani Power has received required approvals from the Assam Electricity Regulatory Commission, and a long term Power Supply Agreement with APDCL is expected to be signed, securing offtake for the new plant (Key Developments).
- A board meeting scheduled for October 30, 2025 will review unaudited quarterly and half yearly results and a proposed amalgamation of wholly owned subsidiaries, potentially simplifying the corporate structure (Key Developments).
- Extraordinary general meetings on November 8, 2025 and December 28, 2025, via postal ballot, will seek shareholder approval for additional amounts on material related party transactions and other key resolutions (Key Developments).
Valuation Changes
- Fair Value: The price target has edged down slightly from ₹187.75 to ₹187.60, reflecting marginally lower long term profitability assumptions.
- Discount Rate: The model discount rate has fallen slightly from 13.79 percent to about 13.72 percent, implying a modest decrease in perceived risk or cost of capital.
- Revenue Growth: Forecast revenue growth has been trimmed slightly from around 16.21 percent to about 16.15 percent, indicating a minor softening in top line expectations.
- Net Profit Margin: The long term net profit margin has fallen moderately from about 20.79 percent to roughly 19.98 percent, weighing on the fundamental valuation.
- Future P/E: The assumed future P/E multiple has risen slightly from about 26.8x to roughly 27.8x, partly offsetting the impact of lower margin assumptions on the target price.
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