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3w ago

Jefferies Initiates Buy Call on Adani Power With Rs 690 Target

Jefferies points to a $384 million payment from Bangladesh alongside PPA-backed expansions following the Vidarbha acquisition, factors expected to lower earnings volatility.

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Adani Power shares likely to approach Rs 700 mark, here's why

Overview

  • Jefferies initiates coverage with a buy rating and Rs 690 target, forecasting EBITDA to double by FY30 amid aggressive capacity expansion.
  • Implementation of the Rs 4,000 crore Vidarbha Industries Power resolution on July 7 adds a 600 MW coal-fired plant in Maharashtra to its portfolio.
  • Orders for 11.2 GW of new capacity at competitive rates underpin a plan to grow generation from 23 GW to 30 GW by FY30.
  • A $384 million payment from Bangladesh in June reduces receivables to $500 million and eases investor liquidity concerns.
  • A strategic shift to PPA-secured projects is set to limit merchant exposure to about 10–12% and lower net debt/EBITDA to 0.6× by FY30.