power

Adani Power

ADANIPOWER · Nifty 50

₹220.4

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 33.6 (78%ile of 5Y range 17-34). Trading above historical range.

Sector Positionpower sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score90/100 (STRONG). 3 positive flags, 2 concerns.

Historical Context228 similar technical setups. Average outcome: -13.8% decline. 0% positive.

Revenue TrendRevenue declining at -0.1% YoY. Revenue declining — -0.1% YoY

Fundamental

90/100

STRONG

Trust

95/100

Verification

Coverage

89/100

HIGH

Quick Take

Adani Power scores 90/100 on fundamentals (strong). Adani Power: PE above historical average. BROAD EXPANSION regime.

Fundamental Score: 90/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 19.3% broken into three drivers. Each shows how efficiently the company generates returns.

ROE19.3%=

22.8%Net Margin

0.4xTurnover

2.2xLeverage

ROE of 19.28% is moderate margin-driven and stable. Net margin of 22.8% × asset turnover of 0.39x × leverage of 2.2x.

What This Means

Net margin of 22.8% means the company keeps ₹22.8 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.39x means the company generates ₹0.39 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 2.2x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.

Margin Structure

Gross

44.0%

Operating

32.9%

Net

22.8%

improving

Gross margin 44.0% → operating margin 32.9% → net margin 22.8%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 5.5x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.4x is moderate.

Free Cash Flow

MODERATE

FCF margin negative at -5.2% — spending more than earning. Check capex cycle.

Peer Comparison

Adani Power is compared against 8 peers in the power sector.

CESC JSWENERGY NHPC NTPC POWERGRID RPOWER TATAPOWER TORNTPOWER

Key Watchpoints

🟢

Breaks above ₹231 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹209 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 27.7

Valuation normalization

🟢

Power sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (38.5%) than equity (15.2%)

✅ High Earnings Quality: Cash flow covers earnings 1.6x — strong cash conversion

Risk Flags

🔴 1 Critical⚠️ 1 Warning✅ 3 Positive5 total flags

🔴Cash covers only 4% of current liabilities

Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Price/Sales: 8.2x — expensive on revenue basis

Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

✅Minimal unusual items — clean earnings

Earnings Quality

Profits are from core operations, not one-offs. High quality.

✅Assets relatively new (26% depreciated)

Balance Sheet

Modern asset base. Lower near-term capex requirements.

✅High promoter holding: 72%

Governance

Strong insider alignment. Promoters have significant skin in the game.

⚠️ 1 critical + 1 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio

33.6HIGH

P/B Ratio

6.6HIGH

ROE

20.9%HIGH

Market Cap

₹43018370.4L CrHIGH

From 52W High

87% of high

Promoter Holding

71.8%MODERATE

Institutional

18.5%

Sector Peers

← All Stocks Market GPS Daily Brief power Sector