Morgan Stanley initiates Adani Power stock with Overweight rating

Published 19/09/2025, 11:48
Morgan Stanley initiates Adani Power stock with Overweight rating

Investing.com - Morgan Stanley has initiated coverage on Adani Power Limited (NS:ADANI) with an Overweight rating and a price target of INR818.00.

Adani Power is India’s largest independent power producer and the second-largest power producer after NTPC, currently holding an 8% share in both coal capacity and generation, according to Morgan Stanley.

The research firm forecasts Adani Power’s market share to reach 15% by fiscal year 2032, with its portfolio expected to expand to 41.9GW, representing 2.5 times growth compared to fiscal year 2025.

Morgan Stanley notes that Adani Power has resolved most regulatory issues and maintains a strong balance sheet with fiscal year 2025 net debt/EBITDA ratio of 1.5x, and expects 60-65% of the company’s US$27 billion capital expenditure for a 23.7GW capacity addition to be funded through internal accruals.

The firm sees potential upside to its estimates if Adani Power’s merchant portfolio decreases from the current 20% level and if profitability improves in the recently acquired 2.9GW power plants.

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