Overall Fundamental outlook

Business Operations:

Sector: Utilities
Industry: Utilities - Independent Power Producers

Adani Power Limited engages in the generation, transmission, and sale of electricity under long term power purchase agreements (PPA), supplemental PPA, medium and short term PPA, and on merchant basis in India. The company generates electricity through thermal energy sources through various power projects with a combined installed and commissioned capacity of 15,250 MW. It operates various coal based power plants comprising 4,620 MW at Mundra, Gujarat; 3,300 MW at Tiroda, Maharashtra; 1,320 MW at Kawai, Rajasthan; 1,200 MW at Udupi, Karnataka; 600 MW at Raigarh, Chhattisgarh; 1,370 MW at Raipur, Chhattisgarh; 1,200 MW at Singrauli, Madhya Pradesh; and 1600 MW at Godda, Jharkhand. The company also operates solar based power plant comprising 40 MW at Bitta, Gujarat. In addition, it engages in coal trading business. Adani Power Limited was founded in 1988 and is headquartered in Ahmedabad, India.

Revenue projections:

Revenue projections for ADANIPOWER
Revenue projections for ADANIPOWER

With ADANIPOWER's revenue forecasted to drop below last year's level, investors are expected to take a cautious stance. Such declines typically affect a company's bottom line, reducing profitability and making investors hesitant to invest heavily in the company until financial performance improves.

Financial Ratios:

currentRatio 1.579000
forwardPE 19.968882
debtToEquity 81.251000
earningsGrowth -0.068000
revenueGrowth 0.009000
grossMargins 0.433000
operatingMargins 0.294040
trailingEps 6.110000
forwardEps -2.230000

A current ratio of 1.579 for ADANIPOWER implies that the company has ample liquidity to meet its short-term debts. ADANIPOWER's cash reserves and current assets should easily cover these obligations, highlighting its financial stability and ability to manage short-term liabilities.
Adani Power Limited's Forward PE ratio suggests that the stock is priced appropriately in relation to its earnings. Not being overpriced, it offers room for growth, signaling potential upside for investors looking for a stock with reasonable valuation and growth potential.
ADANIPOWER's elevated debt-to-equity ratio reflects a high level of debt relative to equity, signaling that the company is heavily leveraged. This reliance on debt could increase financial risk in periods of economic uncertainty.
ADANIPOWER's low earnings and revenue growth suggest that the company may see declining profits. This indicates potential financial challenges ahead, and could lead to a more cautious outlook from investors.
ADANIPOWER's positive gross and operating margins reflect its ability to generate profits from operations. These margins demonstrate efficient cost control and profitability, indicating strong financial health for the company.
ADANIPOWER's forward EPS being lower than trailing EPS indicates reduced profitability in the upcoming year. This points to a potential decline in earnings, which could impact the company's financial strength.

Price projections:

Price projections for ADANIPOWER
Price projections for ADANIPOWER

The current price of ADANIPOWER, in relation to its projections, presents a neutral outlook. There are no discernible risks or opportunities at this stage, indicating that investors may need to await further developments to make informed decisions regarding their positions in the stock.

Recommendation changes over time:

Recommendations trend for ADANIPOWER
Recommendations trend for ADANIPOWER


A recent buy bias from analysts toward ADANIPOWER indicates strong confidence in the stock's future performance. This could encourage investors to park their money in ADANIPOWER, viewing it as a stable and potentially rewarding investment opportunity with promising long-term growth prospects.