Morgan Stanley has hoped Adani Power’s great performance. It has described this company as a good example of a turnover in the history of companies in India. Turnaround means to come on the path of sharp growth again after a company recovers from the crisis of a company. Adani Power is the company of Adani Group. Many companies of Adani Group and the chairman of the group and some other executives were given a clean chit by SEBI on 18 September. SEBI launched an investigation against Adani Group companies following allegations made by American short -selling firm Hindonburg Research in January 2023.
Production capacity by 2033 may be 2.5 times
Morgan Stanley Done Adani power To your first choice (Top pick) told. The foreign brokerage firm said in its report on Adani Power, “Adai Power’s earnings growth is expected to be excellent due to the completion of projects in time and in medium term and PPA.” The brokerage firm has expected the capacity of Adani Power to reach 2.5 times and Ebitda 3 times by 2033.
Target price of Rs 818 for shares
The brokerage firm has given a target price of Rs 818 for Shares of Adani Power. This means that on September 19, this stock can see a good boom against a closing price of Rs 716. Morgan Stanley has said that Adani is the largest thermal power producer after Power India’s largest IPP and NTPC. Its market share in coal capacity and generation is 8 per cent. Adaani Power’s balance sheet is quite strong.
More part of the capital expenditure can come from the internal source
Regarding the capital expenses of Adani Power, the brokerage firm has said that the company is working to make its production capacity 23.7 GW. This will require an investment of $ 27 billion. The company can get 60–65 percent of it from internal sources. One special thing in favor of the company is that the track record of its examination is excellent. The company has enough land for capacity expansion.
Company will benefit from increasing demand for power
Regarding the demand for power in India, the brokerage firm has said that it is likely to grow rapidly. The reason for this is that the speed of urbanization and industrialization in the country is very fast. To fulfill the increasing demand for electricity, heavy investment in generation and grid infrastructure is necessary. Large parts of the population are getting electricity facility. Initiatives like Make in India have strengthened manufacturing in India. It has also helped in reducing the cost of production of electricity.
Shares jumped 13 percent on September 19
On 19 September Adani power The shares showed a huge jump. The reason for this is SEBI’s clean chit following the allegations of Hindonburg Research. Adaani Power’s stock climbed 13 per cent to close at Rs 716.10 on 21 September. This stock has risen 18 percent in the last one month. It has jumped more than 37 percent in the last six months. In the last one year, this stock has climbed 10.24 percent.