New orders to support Adani Group stock's thermal targets by FY32, InCred says

Brokerage firm Incred has maintained an 'Add' rating on Adani Power Ltd., and a price target of ₹649 per share. The target implies a potential upside of 7% from Tuesday's closing levels.

The brokerage wrote in its note that Adani Power has secured Letters of Award (LoAs) for 3.2 GW of new thermal capacity, including 2.4 GW in Bihar and 0.8 GW in Madhya Pradesh. It has also commenced operations at the Dhirauli coal mine, which Incred believes will enhance the company's fuel security and deepen its execution moat.

Additionally, a new order to Larsen & Toubro (L&T), together with prior orders to Bharat Heavy Electricals Ltd. (BHEL), supports Adani Power's revised target for thermal capacity expansion by FY32.

These steps, according to the brokerage, align well with India's expected 5-6% annual power demand growth, especially in the context of shortfalls in new thermal capacity additions.

On the back of these developments, Incred estimates that Adani Power can deliver an 11% compound annual growth rate (CAGR) in EBITDA during FY25-28.

Meanwhile, shares of Adani Power were trading 0.35% lower on Wednesday at ₹606.20. Despite the day's decline, the stock has already gained 15% so far in 2025.

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