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INVESTMENT INSIGHTS

Check Before You Invest : Adani Power Ltd

BSE: 533096 NSE: ADANIPOWER ISIN: INE814H01029
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

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 10 year financial track record.
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.
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

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 118.2% , 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 with its 5 year median of 23.25%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 38.6 35.4
Operating Profit Margin 39.47 35.83
Net Profit Margin 23.25 23.25
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 Equity (ROE) of Adani Power Ltd?
Adani Power Ltd Return on equity is 26.68% for FY-2025 , which is below its historical median of 28.33%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Adani Power Ltd?
Adani Power Ltd Return on capital employed is 23.7% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Adani Power Ltd?
Adani Power Ltd Cash conversion cycle is 77 days, below its historical median of 77 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.54 0.54
ROE 26.68 28.33
ROCE 23.7 23.7
Cash Conversion Cycle 77 days 77 days
Q.9 Debt to Equity ratio of Adani Power Ltd?
Adani Power Ltd Debt-to-Equity ratio is 0.75 , which is lower with the industry average of 1.61 , indicating lower 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 1.89 , which is at a moderate level, indicating the business is able to service its debt comfortably.

Ownership & governance

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)

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 26.03% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 49,710.8 45,895.2
Gross Profit 19,188.5 17,833.9
Operating Profit 19,509 23,369.5
Net Profit 11,560 9,665.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.54 0.31
ROE 26.68 20.12
ROCE 23.7 11.42
Cash Conversion Cycle (days) 77.07 72

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 38.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 38.5% 58.6% 68.6% 75.1%
Q.3 Valuation ratios of Adani Power Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 34.1 0.00 32.46
Price to Book 7.01 2.15 1.75
Price to Sales 7.62 15.29 6.05
EV to EBITDA 18.93 36.66 12.85

Check more companies

1. NTPC
2. Adani Power
3. Power Grid Corp
4. Adani Green Energy
5. Adani Energy Solut.
6. Tata Power
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