Adani Power (ADANIPOWER)

FairStock Score: 83/100 — HIGH CONVICTION

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Buffett-Graham glasses here, so I ask: is this a wonderful business at a fair price? Adani Power is an integrated power utility with ₹3.96 lakh Cr market cap, latest quarter sales ₹12,451 Cr and net profit ₹2,488 Cr. Latest quarter profit ₹2,488 Cr on sales ₹12,451 Cr is strong, but not enough to offset the price. Growth is real: sales up 26.09%, profit up 31.62%, 5-year revenue CAGR 16.25%. Profitability is respectable: ROE 19.33%, ROCE 22.54%, and it generated ₹4,359 Cr free cash flow. Debt/equity 0.82 is manageable, current ratio 1.86, Altman Z 3.98, Piotroski 6/9. Promoter holding 74.96% aligns skin in the game. That suggests scale, cash generation, and improving operating leverage. But no moat metric is given, and zero dividend yield means owners depend on reinvestment. The price is my bigger worry. At ₹205.25, P/E is 27.77, P/B 6.10, book value ₹33.67. Graham Number is ₹63.70, so margin of safety is -119.95%. DCF intrinsic value is only ₹6.73. EV/EBITDA at 257.30 is extraordinarily high. If growth stalls, the high EV/EBITDA and P/B could correct sharply. FairStock score 83/100 is high conviction, but Graham would not buy without a discount. The 52-week range ₹128.10–₹254.20 shows volatility; today’s ₹205.25 is above midpoint. I would call it a fast grower with good execution, but not a value bargain. Watch growth, FCF, and whether valuation compresses.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer