Adani group stocks: Adaani Power shares may rose by 54 per cent during the next 2 years. Brokerage firm Ventura Securities has predicted this in one of its reports. Brokerage said that this company of Adani Group is focusing on the expansion of its business. Also, the availability of coal in the country is also increasing, which can benefit this stock. Apart from this, electricity demand in the country is increasing very fast. Due to the boom in manufacturing activities and increasing use of electronic devices in homes, electricity demand is being increased. Ventura Securities believes that Adani Power is in good condition to take advantage of this increasing demand for electricity.
Brokerage said that the sources of renewable energy are currently unable to meet these increasing power needs. There is a need to increase thermal power capacity to meet the power demand and supply gap. Adani Power is the largest private thermal power producing company in the country and is in good position to meet this demand with its strong capacity expansion plans.
Ventura has fixed a target price of Rs 806 for Adani Power with the next 24 months time period. This expresses the possibility of an increase of about 54 percent in the stock from the current level. Adaani Power’s shares fell 1.21 per cent to close at Rs 515.50 on Friday 24 January.
Adani Power has a total installed capacity of 17.55 GW. This India is the most private coal-status thermal power company. The company purchases coal from domestic and international markets. Due to increasing power demand, low prices of imported coal and better availability of domestic coal, there has been a significant improvement in the average plant load factor (PLF) of Adani Power. It increased from 48 percent in FY 2023 to 72 percent in the first half of FY 25. This is the highest level of the last 7 years. Ventura said that this growth is more than our previous estimates.
The first half of the current financial year recorded a growth of 17.9 percent and 32.1 percent in the Revenue of Adani Power and Ebitda respectively. According to Ventura, during FY 24-27, Adani Power Revenue and EBITDA are expected to increase by 11.8 percent and 11 percent respectively to Rs 70,284 crore and Rs 24,864 crore.
Also read- New game playing FIIS in the stock market? Selling big shares, big bets on small shares
Disclaimer: The ideas and investment advice given by experts/brokerage firms on Moneycontrol are their own, not the website and its management. Moneycontrol advises users to consult a certified expert before making any investment decision.