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

Revenues for ADANIPOWER are expected to drop compared to the previous year, which could be a cause for concern for investors. A decline in earnings may negatively impact the company's profitability, leading cautious investors to reconsider their positions, as it often signals challenges in overall financial health.

Financial Ratios:

currentRatio 1.579000
forwardPE 19.185417
debtToEquity 81.251000
earningsGrowth -0.068000
revenueGrowth 0.009000
grossMargins 0.433000
operatingMargins 0.294040
trailingEps 6.120000
forwardEps 7.022000

ADANIPOWER's current ratio is 1.579, signaling that the company has sufficient cash reserves and current assets to cover its short-term debt obligations. This suggests financial stability, as ADANIPOWER should not face any issues meeting its short-term liabilities with available resources.
ADANIPOWER's Forward PE ratio is favorable, meaning the stock price aligns well with earnings and isn't overvalued. This allows room for growth, making it an attractive investment for those seeking potential upside while ensuring the stock is not overpriced.
Adani Power Limited's high debt-to-equity ratio indicates that the company is heavily leveraged. This suggests a significant reliance on debt to finance its operations, which could expose the company to higher financial risks if its cash flow or profitability decreases.
ADANIPOWER's low earnings and revenue growth indicate potential profit shrinkage. This suggests that the company's financial performance may be weakening, raising concerns about its future profitability and overall business outlook.
With positive gross and operating margins, ADANIPOWER demonstrates its profitability and efficiency. These metrics show that the company is managing costs well while generating strong revenue, highlighting robust financial health.
ADANIPOWER's forward EPS is greater than its trailing EPS, indicating that the company is expected to deliver higher profitability this year. This suggests that ADANIPOWER is projected to improve its earnings, reflecting positive growth compared to last year's financial performance.

Price projections:

Price projections for ADANIPOWER
Price projections for ADANIPOWER

Price projections for ADANIPOWER have been gradually lowered, signaling reduced optimism among analysts. This downward adjustment suggests that the company may face challenges in meeting previous growth expectations.

Recommendation changes over time:

Recommendations trend for ADANIPOWER
Recommendations trend for ADANIPOWER


Analysts' buy bias toward ADANIPOWER suggests the stock is seen as a solid investment, potentially motivating investors to consider it for their portfolios. With this positive outlook, ADANIPOWER is likely to be viewed as a secure place to allocate funds, driving further interest in the stock.