Bank of Japan hikes policy rates by 25 basis points to highest in 17 years<\/a>Here are the 5 reasons why Ventura Securities believes one should invest in APL:<\/p>\n1. Secure Business Model<\/h2>\n
The company boasts a strong and secure business model. A significant portion of its capacity, 80%, is contracted under long-term, remunerative Power Purchase Agreements (PPAs). Additionally, 84% of its domestic fuel requirements are secured through long-term contracts, ensuring a stable and reliable fuel supply.<\/p>\n
2. Regulatory Stability<\/h2>\n
The company has achieved full resolution of all regulatory matters pertaining to domestic coal shortfall following the Supreme Court’s orders dated 20th April 2023. Furthermore, the company is able to recover alternate fuel costs under change-in-law clauses of PPAs, providing further financial stability.<\/p>\n
3. Sectoral Growth Potential<\/h2>\n
The Indian power sector presents significant growth opportunities for the company. With 17.55 GW of operating assets and a robust growth pipeline of 13.12 GW, the company is well-positioned to capitalize on the growing demand for dispatchable power capacity. The easing of fuel availability constraints further enables greater capacity expansion.<\/p>\n
4. Projection Execution, State-of-the-Art Facilities, and Operational Excellence<\/h2>\n
The Adani Group is renowned for its exceptional project execution capabilities. The company has demonstrated its expertise through the successful development of supercritical power projects and the efficient turnaround of acquired power assets. The company also excels in power plant operations and fuel & logistics management, leveraging its subsidiaries AIMSL and ENOC.<\/p>\n
5. Strong Liquidity Backing<\/h2>\n
The company maintains a strong debt servicing capability, reflected in its Credit Rating AA, with abundant headroom for future growth. It is backed by the Adani Group, India’s largest infrastructure and real asset platform, providing strong financial support and stability.<\/p>\n
However, the domestic brokerage firm also highlighted a Bear case scenario for the stock, which may take it down to Rs 492 level.<\/p>\n
Today, around 1:30 pm, the shares of Adani Power were trading 1.5% lower at Rs 513.65 on the BSE.<\/p>\n
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"
Predicting a 57% upside in Adani Power (APL) stock, domestic brokerage firm Ventura Securities has given a \u2018buy\u2019 rating and set a target price of Rs 806. According to Ventura Securities, APL stands out as one of the largest, fastest-growing, and operationally efficient companies. The upside potential as stated above is from the stock\u2019s present […]<\/p>\n","protected":false},"author":1,"featured_media":34251,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50],"tags":[4016,29647,3873,11346,29646,2494,4885,1121,4475,5935,3442,29649,29648,121],"class_list":["post-34250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock","tag-adani","tag-adani-group-stock","tag-adani-power","tag-adani-power-share-price","tag-adani-power-stock-update","tag-investment","tag-lists","tag-power","tag-reasons","tag-sees","tag-upside","tag-ventura","tag-ventura-securities-on-adani-power","tag-years"],"_links":{"self":[{"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/posts\/34250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/comments?post=34250"}],"version-history":[{"count":0,"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/posts\/34250\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/media\/34251"}],"wp:attachment":[{"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/media?parent=34250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/categories?post=34250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lsd.hu\/wp-json\/wp\/v2\/tags?post=34250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}