Adani Power shares extend rally for 5th straight sessions; here’s why?

Continuing its gaining streak for the fifth straight session on Tuesday, Adani Power shares jumped over 8% intraday, driven by strong volume. More than 42.5 lakh shares changed hands over the counter on the BSE as compared to two-week average of 3.82 lakh stocks. The Adani group stock has surged over 12% in five trading days.

Adani Power shares saw strong buying on Tuesday, with the power heavyweight gaining as much as 8.3% to ₹610 on the BSE. Finally, the largecap stock settled day’s trade at ₹598.80, up 6.3%, with a market capitalisation of ₹2.3 lakh crore.

At the current level, Adani Power share price is down 33% from its 52-week high of ₹810.55 touched on June 10, 2024. The stock, however, has risen nearly 42% from its 52-week low of ₹430.85 hit on November 21, 2024. In the last six months, the counter has added nearly 14%, whereas it gained nearly 10% in a month.

Technically, Adani Power shares are trading higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. The stock has turned “mildly bearish” from “mildly bullish” on April 25, 2025, as per marketsmojo, a share market research platform.

Last month, InCred Equities initiated coverage on Adani Power Ltd (APL) with an ‘ADD’ rating and a price target of ₹649 per share, saying that the valuation is supported by a projected 9% profit after tax (PAT) CAGR and sustained return on equity (RoE) above 15%.

Overcoming past challenges, including a ₹2,093 crore net loss in FY18 and a ₹49,100 crore debt burden (8.9x D/E), APL has transformed through regulatory wins, such as the Supreme Court of India’s approval in respect of compensatory tariffs for Mundra plant, and operational efficiency, achieving a 71% PLF and ₹56,400 crore in revenue in FY25, it said in a report released on May 28, 2025.

“Its expertise in reviving stressed assets, as evidenced by the 3.5x EBITDA growth of Mahan Energen post-acquisition, and recent additions like the 1,200MW Mutiara and 600MW Korba plants, strengthens its portfolio as it acquires stressed assets at a low cost and turns them around within a span of 18-24 months,” the report noted.

Going ahead, InCred Equities projects APL to report 11% EBITDA CAGR over FY25-28, while it expects the capex of ₹1,20,000 crore to be funded via internal accruals, deleveraging the balance sheet to reduce net-debt/EBITDA to 0.9x by FY30F from 1.5x in FY25.

The brokerage house noted that Adani Power stands tall with a 17.55GW capacity and a bold roadmap to expand to 30.67GW by FY30F, aligning seamlessly with India’s projected 5-6% annual power demand growth.

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