Adani Power (NSEI:ADANIPOWER) - Share price, News & Analysis

Q: What is the Fair Price of ADANIPOWER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ADANIPOWER (₹263.25) is trading above our estimate of [[fair value]] (₹112.98)

ADANIPOWER fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	5/6
Financial Health	2/6
Dividends	0/6

ADANIPOWER Stock Overview

Adani Power Limited engages in the generation and transmission of electricity under long term power purchase agreements and on merchant basis in India.

Rewards

Earnings grew by 19593.6% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 138.3% per year for the next 3 years

Interest payments are not well covered by earnings

Volatile share price over the past 3 months

Adani Power Competitors

NTPC

NSEI:NTPC

₹1.4t

JSW Energy

BSE:533148

₹335.7b

NLC India

BSE:513683

₹86.8b

India

BSE:532524

₹22.4b

Price History & Performance

Summary of all time highs, changes and price drops for Adani Power
Historical stock prices
Current Share Price	₹263.25
52 Week High	₹344.50
52 Week Low	₹70.35
Beta	0.20
1 Month Change	-7.34%
3 Month Change	24.20%
1 Year Change	140.63%
3 Year Change	313.59%
5 Year Change	826.94%
Change since IPO	155.21%

Recent News & Updates

Jun 04

If You Like EPS Growth Then Check Out Adani Power (NSE:ADANIPOWER) Before It's Too Late

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

	ADANIPOWER	IN Renewable Energy	IN Market
7D	-0.5%	0.7%	0.6%
1Y	140.6%	38.6%	-0.3%

Return vs Industry: ADANIPOWER exceeded the Indian Renewable Energy industry which returned 38.6% over the past year.

Return vs Market: ADANIPOWER exceeded the Indian Market which returned -0.3% over the past year.

Price Volatility

Is ADANIPOWER's price volatile compared to industry and market?
ADANIPOWER volatility
ADANIPOWER Average Weekly Movement	9.3%
Renewable Energy Industry Average Movement	7.7%
Market Average Movement	6.8%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.4%

Stable Share Price: ADANIPOWER is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: ADANIPOWER's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
1988	2,936	Shersingh Khyalia	https://www.adanipower.com

Adani Power Limited engages in the generation and transmission of electricity under long term power purchase agreements and on merchant basis in India. It generates electricity through thermal and solar energy sources. The company has various power projects with a combined installed and commissioned capacity of 12,450 MW, including 4,620 MW at Mundra, Gujarat; 3,300 MW at Tiroda, Maharashtra; 1,320 MW at Kawai, Rajasthan; 40 MW at Bitta, Gujarat; and 1,600 MW at Godda, Jharkhand, as well as 1,200 MW at Udupi, Karnataka; 1,370 MW at Raipur, Chhattisgarh; and 600 MW at Raigarh, Chhattisgarh.

Adani Power Fundamentals Summary

How do Adani Power's earnings and revenue compare to its market cap?
ADANIPOWER fundamental statistics
Market Cap	₹1.02t
Earnings (TTM)	₹49.12b
Revenue (TTM)	₹277.11b

20.7x

P/E Ratio

3.7x

P/S Ratio

Is ADANIPOWER overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ADANIPOWER income statement (TTM)
Revenue	₹277.11b
Cost of Revenue	₹159.51b
Gross Profit	₹117.61b
Other Expenses	₹68.49b
Earnings	₹49.12b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	12.73
Gross Margin	42.44%
Net Profit Margin	17.72%
Debt/Equity Ratio	260.9%

How did ADANIPOWER perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ADANIPOWER undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ADANIPOWER?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ADANIPOWER. This is calculated by dividing ADANIPOWER's market cap by their current preferred multiple.
What is ADANIPOWER's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹1.02t

ADANIPOWER key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	5.3x
Enterprise Value/EBITDA	15.1x
PEG Ratio	-0.1x

Price to Earnings Ratio vs Peers

How does ADANIPOWER's PE Ratio compare to its peers?

ADANIPOWER PE Ratio vs Peers

The above table shows the PE ratio for ADANIPOWER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.2x
NTPC NTPC	8.2x	7.5%	₹1.4t
533148 JSW Energy	19.4x	-3.7%	₹335.7b
513683 NLC India	7.9x	n/a	₹86.8b
532524 India	5.2x	n/a	₹22.4b
ADANIPOWER Adani Power	20.7x	-138.3%	₹1.0t

Forward PE

Price-To-Earnings vs Peers: ADANIPOWER is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (10.2x).

Price to Earnings Ratio vs Industry

How does ADANIPOWER's PE Ratio compare vs other companies in the IN Renewable Energy Industry?

Price-To-Earnings vs Industry: ADANIPOWER is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the Indian Renewable Energy industry average (17.5x)

Price to Earnings Ratio vs Fair Ratio

What is ADANIPOWER's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ADANIPOWER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	20.7x
Fair PE Ratio	2.1x

Price-To-Earnings vs Fair Ratio: ADANIPOWER is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (2.1x).

Share Price vs Fair Value

What is the Fair Price of ADANIPOWER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ADANIPOWER (₹263.25) is trading above our estimate of fair value (₹112.98)

Significantly Below Fair Value: ADANIPOWER is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: ADANIPOWER's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is Adani Power forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-138.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADANIPOWER's earnings are forecast to decline over the next 3 years (-138.3% per year).

Earnings vs Market: ADANIPOWER's earnings are forecast to decline over the next 3 years (-138.3% per year).

High Growth Earnings: ADANIPOWER's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ADANIPOWER's revenue (1.3% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: ADANIPOWER's revenue (1.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ADANIPOWER's Return on Equity is forecast to be low in 3 years time (1.2%).

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Past Performance

How has Adani Power performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

52.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ADANIPOWER has high quality earnings.

Growing Profit Margin: ADANIPOWER's current net profit margins (17.7%) are higher than last year (0.1%).

Past Earnings Growth Analysis

Earnings Trend: ADANIPOWER has become profitable over the past 5 years, growing earnings by 52.2% per year.

Accelerating Growth: ADANIPOWER's earnings growth over the past year (19593.6%) exceeds its 5-year average (52.2% per year).

Earnings vs Industry: ADANIPOWER earnings growth over the past year (19593.6%) exceeded the Renewable Energy industry 79.2%.

Return on Equity

High ROE: Whilst ADANIPOWER's Return on Equity (26.26%) is high, this metric is skewed due to their high level of debt.

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Financial Health

How is Adani Power's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ADANIPOWER's short term assets (₹162.3B) do not cover its short term liabilities (₹171.4B).

Long Term Liabilities: ADANIPOWER's short term assets (₹162.3B) do not cover its long term liabilities (₹461.3B).

Debt to Equity History and Analysis

Debt Level: ADANIPOWER's net debt to equity ratio (247.3%) is considered high.

Reducing Debt: ADANIPOWER's debt to equity ratio has reduced from 1749.7% to 260.9% over the past 5 years.

Debt Coverage: ADANIPOWER's debt is well covered by operating cash flow (21%).

Interest Coverage: ADANIPOWER's interest payments on its debt are not well covered by EBIT (1.6x coverage).

Balance Sheet

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Dividend

What is Adani Power current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate ADANIPOWER's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ADANIPOWER's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ADANIPOWER's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ADANIPOWER's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ADANIPOWER has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure

CEO

Shersingh Khyalia

0.50

Tenure

Mr. Shersingh B. Khyalia serves as Chief Executive Officer of Adani Power Limited since January 11, 2022. He is a Chartered Accountant and has rich experience in managing complex business in power industry...

Leadership Team

Experienced Management: ADANIPOWER's management team is considered experienced (4.5 years average tenure).

Board Members

Experienced Board: ADANIPOWER's board of directors are considered experienced (5.6 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31