Adani Power Ltd (ADANIPOWER) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

NTPC

Torrent Power

NLC India

Adani Power

Adani Energy Sol

Power Grid Corpn

NTPC Green Ene.

Tata Power Co.

JSW Energy

Adani Green

NHPC Ltd

Why is Adani Power Ltd ?

Healthy long term growth as Net Sales has grown by an annual rate of 15.65% and Operating profit at 22.76%

Flat results in Mar 26

ROCE(HY) Lowest at 15.77%
OPERATING PROFIT TO INTEREST (Q) Lowest at 4.89 times
PBT LESS OI(Q) At Rs 2,617.98 cr has Fallen at -14.3% (vs previous 4Q average)

With ROCE of 13.7, it has a Very Expensive valuation with a 4.3 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 116.47%, its profits have fallen by -0.8%

Majority shareholders : Promoters

Market Beating performance in long term as well as near term

Along with generating 116.47% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

With its market cap of Rs 4,43,837 cr, it is the biggest company in the sector and constitutes 20.75% of the entire sector

Its annual Sales of Rs 54,240.52 are 9.88% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Adani Power should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Adani Power for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Adani Power

116.47%

2.80

41.67%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.65%

EBIT Growth (5y)

22.76%

EBIT to Interest (avg)

3.50

Debt to EBITDA (avg)

3.46

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

0.52

Tax Ratio

16.31%

Dividend Payout Ratio

Pledged Shares

1.81%

Institutional Holding

15.42%

ROCE (avg)

14.14%

ROE (avg)

30.63%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.69

EV to EBIT

31.52

EV to EBITDA

24.26

EV to Capital Employed

4.32

EV to Sales

8.86

PEG Ratio

Dividend Yield

ROCE (Latest)

13.71%

ROE (Latest)

19.76%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PAT(Q)

Highest at Rs 4,017.08 cr.

EPS(Q)

Highest at Rs 2.08

-11What is not working for the Company

ROCE(HY)

Lowest at 15.77%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 4.89 times

PBT LESS OI(Q)

At Rs 2,617.98 cr has Fallen at -14.3% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 0.84 times

INTEREST(Q)

Highest at Rs 967.26 cr

NON-OPERATING INCOME(Q)

is 40.28 % of Profit Before Tax (PBT

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Here's what is working for Adani Power

Profit After Tax (PAT) - Quarterly

At Rs 4,017.08 cr has Grown at 40.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2,863.55 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 4,017.08 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 2.08

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Adani Power

Interest - Quarterly

At Rs 967.26 cr has Grown at 37.98%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 4.89 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2,617.98 cr has Fallen at -14.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 3,054.96 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Quarterly

Highest at Rs 967.26 cr

in the last five quarters and Increased by 37.98 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 40.28 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debt-Equity Ratio - Half Yearly

Highest at 0.84 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 1,766.00 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income