Check Before You Invest : Adani Power Ltd

Q: Which industry/sub-sector does Adani Power Ltd belong to?

Adani Power Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q: Is Adani Power Ltd a good quality company?

Adani Power Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Adani Power Ltd undervalued or overvalued?

Adani Power Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 38.51, Historic Median: 9.96. Price to Book, Current: 7.98, Historic Median: 5.35. Price to Sales, Current: 9.34, Historic Median: 7.06. EV to EBITDA, Current: 21.67, Historic Median: 15.16

Q: Is Adani Power Ltd a good buy now?

Adani Power Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Adani Power Ltd?

Adani Power Ltd revenue growth is 7% for FY-2025, which is below its 5-year CAGR of 118.19%, indicating slower growth.

Q: Gross Profit margin of Adani Power Ltd?

Adani Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 38.6% for FY-2025, which is above its 5-year median of 35.4%, indicating increasing margins.

Q: Operating Profit Margin of Adani Power Ltd?

Adani Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 39.47% for FY-2025, which is above its 5-year median of 35.83% indicating increasing margins.

Q: Net Profit Margin of Adani Power Ltd?

Adani Power Ltd Net Profit Margin is 23.25% for FY-2025, is in line with its 5-year median of 23.25%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 38.6, Historic Median: 35.4. Operating Profit Margin (%), Current: 39.47, Historic Median: 35.83. Net Profit Margin (%), Current: 23.25, Historic Median: 23.25

Q: Return on Asset of Adani Power Ltd?

Adani Power Ltd Return on Asset is 12.46%, which is in line with its 5-year historical median of 12.46%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Adani Power Ltd?

Adani Power Ltd Return on capital employed is 23.7% for FY-2025, which is in line with its 5-year historical median of 23.7%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Adani Power Ltd

Snapshot

Q.1 Which industry/sub-sector does Adani Power Ltd belong to?

Adani Power Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is Adani Power Ltd a good quality company?

Adani Power Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Adani Power Ltd undervalued or overvalued?

Adani Power Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	38.51	9.96
Price to Book	7.98	5.35
Price to Sales	9.34	7.06
EV to EBITDA	21.67	15.16

Q.4 Is Adani Power Ltd a good buy now?

Adani Power Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Adani Power Ltd?

Adani Power Ltd revenue growth is 7% for FY-2025, which is below its 5-year CAGR of 118.19%, indicating slower growth.

Q.2 Gross Profit margin of Adani Power Ltd?

Adani Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 38.6% for FY-2025, which is above its 5-year median of 35.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Adani Power Ltd?

Adani Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 39.47% for FY-2025, which is above its 5-year median of 35.83% indicating increasing margins.

Q.4 Net Profit Margin of Adani Power Ltd?

Adani Power Ltd Net Profit Margin is 23.25% for FY-2025, is in line with its 5-year median of 23.25%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	38.6	35.4
Operating Profit Margin (%)	39.47	35.83
Net Profit Margin (%)	23.25	23.25

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Adani Power Ltd?

Adani Power Ltd Return on Asset is 12.46%, which is in line with its 5-year historical median of 12.46%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Adani Power Ltd?

Adani Power Ltd Return on capital employed is 23.7% for FY-2025, which is in line with its 5-year historical median of 23.7%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Adani Power Ltd?

Adani Power Ltd Return on equity is 30.3% for FY-2025, which is in line with its 5-year historical median of 30.3%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Adani Power Ltd?

Adani Power Ltd Cash conversion cycle is 77 days, in line with its 5-year historical median of 77 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.54	0.54
ROE (%)	30.3	30.3
ROCE (%)	23.7	23.7
Cash Conversion Cycle	77 days	77 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Adani Power Ltd?

Adani Power Ltd Debt-to-Equity ratio is 0.88, which is above the industry average of 0.44, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Adani Power Ltd?

Adani Power Ltd Debt to cash flow from operations is 2.06, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Adani Power Ltd?

Q.1 Promoter shareholding and pledge status of Adani Power Ltd?

Promoters hold 74.96% of the Adani Power Ltd, with 1.81% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Adani Power Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Adani Power Ltd vs industry peers?

Adani Power Ltd revenue CAGR is 118.19%, compared to the industry median CAGR of 17.64%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	7	17.6
Gross Profit Growth (%)	-18	21.8
Operating Profit Growth (%)	17	11.7
Net Profit Growth (%)	-41.1	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.54	0.27
ROE (%)	30.3	16.15
ROCE (%)	23.7	11.23
Cash Conversion Cycle (days)	77.07	68

Valuation & price assessment

Q.1 Stock return of Adani Power Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 44.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	44.2%	61.4%	64.6%	99.8%

Q.2 Valuation ratios of Adani Power Ltd vs historical?

The current P/E ratio of 38.51 is higher than its historical median of 9.96, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	38.51	9.96	27.37
Price to Book	7.98	5.35	1.82
Price to Sales	9.34	7.06	6.75
EV to EBITDA	21.67	15.16	13.61

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Check Before You Invest : Adani Power Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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