Adani Power Shares to Rebound: Why Investors Should Stay the Course for a 28% Upside

Despite a recent dip, Adani Power shares are expected to bounce back and reach new heights, with a potential upside of 28%. At a time when most of its power sector peers have struggled, Adani Power has emerged as a strong performer, with its shares rallying 36% in the past 12 months.

Current Market Trends

The BSE Power Index has declined around 14% in the past 12 months, with many major players like Siemens, Thermax, and ABB India experiencing significant losses. However, Adani Power has managed to stay ahead of the curve, with its shares still trading above their 200-day simple moving average (SMA) of Rs 124.5.

Expert Insights

Market experts believe that Adani Power's long-term prospects remain strong, driven by a 2.3X capacity expansion from 18.15 GW in FY25 to 41.9 GW by FY33E. Anuj Gupta, Director at Ya Wealth Global Research, recommends a 'Hold' for the counter, citing strong support at Rs 135 and resistance at Rs 160.

Key Facts

• Adani Power shares have slipped below their 50-day SMA of Rs 152.1
• The company has secured a dominant 70% share of the ongoing state-led thermal PPA awards (12.4 GW of 17.7 GW)
• Earnings visibility is strong, with 90% of operational capacity and 67% of the 41.9 GW portfolio tied under long-term PPAs
• Consolidated revenue/ EBITDA/ PAT is expected to grow at 16%/ 19%/ 17% CAGR over FY25-32E

Investment Advice

Investors are advised to stay patient and ride the tide, as the company's fundamentals remain strong. With a potential upside of 28%, Adani Power shares are an attractive bet for those looking to invest in the power sector.

Remember, this is a perspective, not a prediction. It's essential to do your own research and consider your own risk tolerance before making any investment decisions.