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Adani Power : With a “Buy” rating and a target price of Rs 187 per share, Antique Stock Broking began covering Adani Power Limited (APL) on Tuesday.

The brokerage believes that the company, which is now trading at roughly Rs 144, has a 30% upside potential due to plans for major capacity development, solid earnings visibility, and strengthening balance sheet strength.

According to Antique’s analysis, a significant expansion in capacity and a surge in India’s demand for electricity are driving Adani Power into a multi-year profits upcycle.

From 18.15 GW in FY25 to 41.9 GW by FY33, the business intends to more than double its existing capacity.

Adani Power has clearly turned around from its previous stage as a stressed thermal power provider with this expansion, positioning it as the nation’s most efficient private sector baseload power generator.

India is experiencing a structural upcycle in power demand, according to the brokerage, and between FY22 and FY32, energy consumption is predicted to increase at an annual pace of 6%.

Peak power needs are increasing due to growing demand from industry, data centers, electric cars, and artificial intelligence, which further supports the need for dependable coal-based power production.

In the current state-led thermal power procurement cycle, Adani Power has clearly taken the lead, according to the brokerage.

The business has won 12.4 GW of the 17.7 GW authorized, or around 70% of the given capacity so far.

This demonstrates its cost advantage, excellent execution skills, and project preparedness.

With approximately 90% of its operating capacity and around 67% of its entire 41.9 GW portfolio currently committed to long-term power purchase agreements, the company’s earnings visibility is still good.

Between FY25 and FY32, Antique anticipates that Adani Power’s consolidated revenue, EBITDA, and profit after tax would expand at a respectable rate of 16%, 19%, and 17%, respectively.

The business intends to use internal accruals to finance around 60% of its approximately Rs 2 lakh crore capital expenditure pipeline, the brokerage noted.

With the net debt-to-EBITDA ratio predicted to drop below 1x by FY32 and the return on equity forecast to stay above 15%, this is anticipated to promote consistent deleveraging.