Elara Capital Initiates Coverage of Adani Power with Accumulate Rating and ₹220 Target

Adani Power shares have risen 27% year‑to‑date, prompting brokerage Elara Capital to initiate coverage with an Accumulate rating and a ₹220 target price, implying over 16% upside from the ₹189 close on 9 October. The broker sees strong medium‑term growth backed by a 24 GW locked‑in expansion pipeline that could lift total capacity to 42 GW. Current operating capacity stands at 18.3 GW across 13 high‑efficiency supercritical and ultra‑supercritical plants. About 60% of the planned expansion is brownfield, allowing faster execution and lower costs. Roughly 55% of the new capacity, or 13.3 GW, is secured by long‑term power purchase agreements, while the remainder offers merchant‑power upside as demand grows. Elara highlights thermal power’s role in providing reliable baseload electricity amid rising renewable intermittency, transmission constraints and grid‑balancing needs. India aims to add around 80 GW of coal‑based capacity by FY32, supporting the outlook for thermal generators. Recent share performance shows a 4.04% fall in the past week, 6.90% over two weeks, 11.89% in the past month and 12.62% over three months, despite the 27% YTD gain. The target price is based on a 12‑times FY29 EV/EBITDA multiple. Elara also notes Adani Power’s track record of acquiring under‑performing assets such as Udupi Power (1.2 GW), Coastal Energen (1.2 GW) and Lanco Amarkantak, providing a capital‑efficient growth path. ## Context Thermal power remains a cornerstone of India’s electricity mix, supplying steady output that complements variable renewable sources and helps maintain grid stability.