From mint · Dhanya Nagasundaram · · 1m 30s
Adani Power Shares Up 27% But Elara Sees 16% Upside
Elara Capital targets ₹220 for Adani Power after 27% gain in 2026.
In brief
Elara Capital targets ₹220 for Adani Power after 27% gain in 2026. Elara Capital initiated coverage on Adani Power with an 'Accumulate' rating and ₹220 target price, implying 16% upside from its ₹189 closing price on 9 October 2026. Originally reported by mint.
Adani Power Shares Up 27%
Adani Power shares gained 27% so far in 2026, with a closing price of ₹189 on the BSE on Friday, 9 October.
“Adani Power shares have gained 27% so far in 2026”
Elara Capital Initiates Coverage
Elara Capital initiated coverage with an 'Accumulate' rating and a target price of ₹220, implying over 16% upside from current price.
“Elara Capital has initiated coverage on the stock with an 'Accumulate' rating and a target price of ₹ 220”
Thermal Power Critical for India
Elara Capital believes thermal power will remain critical to India's energy security by providing reliable baseload electricity.
“Elara Capital believes thermal power will continue to play a crucial role in india's power system”
42 GW Capacity Target
Adani Power's locked-in expansion pipeline of 24 GW could take total capacity to 42 GW, with 60% brownfield projects.
“Adani Power, India's largest private thermal power generator, currently operates 18.3 GW of capacity”
PPA Coverage and Merchant Power
13.3 GW of expansion is backed by long-term PPAs, with merchant power opportunities for additional upside.
“13.3 GW, or around 55% of the locked-in expansion pipeline, is backed by long-term PPAs”
Acquisition Strategy
Adani Power has acquired assets like Udupi Power (1.2 GW) and Coastal Energen (1.2 GW) to expand capacity.
“The brokerage cited acquisitions such as Udupi Power (1.2 GW), Coastal Energen (1.2 GW) and Lanco Amarkantak”
Valuation Concerns
Shares have fallen 11.89% in the past month and 12.62% over three months, indicating sustained weakness.
“The stock has fallen 11.89% in the past month and 12.62% over the last three months”
Target Price Justification
Elara Capital sets target price at ₹220 based on 12 times FY29 enterprise value-to-EBITDA.
“Elara Capital has set its target price at ₹ 220, based on 12 times its estimated FY29 enterprise value-to-EBITDA”
Upside Calculation
Current price of ₹189 implies over 16% upside to target price of ₹220.
“The target implies over 16% upside from the stock's ₹ 189 closing price on 9 October”
The key point
Elara Capital initiated coverage on Adani Power with an 'Accumulate' rating and ₹220 target price, implying 16% upside from its ₹189 closing price on 9 October 2026.
