Motilal Oswal Issues Buy Call on Adani Power With Rs 250 Target Price as Capacity Expansion Accelerates Motilal Oswal has initiated coverage on Adani Power with a 'Buy' rating and a target price of Rs 250. The brokerage highlighted the thermal power producer's 18 GW capacity, aggressive expansion timeline, and turnaround track record. Shares of Adani Power experienced positive momentum during Thursday's intraday trading session following the release of a bullish research report by Motilal Oswal. The domestic brokerage initiated coverage on the thermal power stock with a 'Buy' rating, projecting significant upside driven by the company's aggressive capacity expansion pipeline, solid execution track record in turning around distressed power assets, and potential future upside from its foray into nuclear energy. Brokerage Valuation Framework and Target Price Analysis Motilal Oswal assigned a target price of Rs 250 per share to Adani Power. The brokerage valued the enterprise at 16x FY29E EBITDA, while adding INR 1 per share to account for the company's investment portfolio. Adjusting the combined valuation figure for net corporate debt yields the final price target of Rs 250 per share. At current market levels, Adani Power trades at an enterprise value to EBITDA multiple of 13.8x based on FY29 estimates (FY29E EV/EBITDA). Motilal Oswal projects healthy financial growth trajectories over the forecast period, estimating an EBITDA compound annual growth rate (CAGR) of 21 percent from FY26 to FY29. Profit after tax (PAT) is expected to grow at a CAGR of 9 percent across the same timeframe. Capacity Expansion Plans and Market Leadership Adani Power stands as India's largest private thermal power producer, with operational capacity reaching nearly 18 gigawatts (GW) in the first quarter of financial year 2026-27 (Q1 FY27). Upon reaching this scale, the firm will control 24 percent of India's total private coal and lignite-based generation capacity and 8 percent of the nation's aggregate thermal capacity. To support growing electricity demand, the power producer has outlined a clear capacity addition schedule. According to the research report, Adani Power plans to commission 1.3 GW of capacity in FY27, followed by 1.6 GW in FY28, and a substantial 3.2 GW addition in FY29. This progressive build-out will add 6.1 GW of thermal power to its portfolio over the three-year horizon. Industry Landscape and Favorable Competitive Dynamics The Central Electricity Authority (CEA) has outlined an 86 GW pipeline for thermal capacity expansion across India. Motilal Oswal notes that Adani Power is positioned to emerge as a primary beneficiary of this build-out due to benign competitive pressures in the non-regulated thermal market. State-run giant NTPC predominantly restricts its participation to regulated tariff-linked power projects. Among private peers, Tata Power has shifted its strategic focus heavily toward renewable energy projects, whereas JSW Energy is already managing a full pipeline of thermal and renewable commitments. This competitive landscape provides Adani Power with unique headroom to secure upcoming generation contracts. Stock Price Action and Valuation Snapshot During morning trades on Thursday at 10:14 am, Adani Power shares traded 0.99 percent higher at Rs 209.30 on the BSE, bringing the company's overall market capitalization to Rs 4,03,628.66 crore. The stock recorded an intraday high of Rs 211.35 per share against an intraday low of Rs 208.50 per share. The positive price movement reflects investor confidence in the company's long-term earnings potential and capacity expansion roadmap. What this means for you This brokerage rating upgrade and capacity expansion analysis carry direct implications for equity investors, power sector analysts, and electricity consumers. • Across India for Equity Investors: The target price of Rs 250 represents a potential upside of approximately 19.4 percent from the trading level of Rs 209.30. Investors holding the stock gain visibility into projected long-term EBITDA and earnings growth. • Across India for Power Sector Investors: The Central Electricity Authority's 86 GW expansion pipeline signals strong systemic demand for base-load thermal power. This ensures sustained utilization rates for large private producers. • Across India for Power Consumers: The planned addition of 6.1 GW by FY29 will bolster grid stability across operational states. Increased generation capacity helps minimize supply deficits during peak demand seasons. • Across India for Retail Traders: With the stock trading in an intraday band of Rs 208.50 to Rs 211.35, market participants should track quarterly execution against the target capacity milestones. Questions & Answers 1. What target price has Motilal Oswal set for Adani Power? Motilal Oswal has set a target price of Rs 250 per share for Adani Power with a 'Buy' rating. 2. What is Adani Power's current generation capacity? Adani Power's generation capacity reaches nearly 18 gigawatts (GW) in the first quarter of financial year 2026-27. 3. What is the capacity expansion timeline for Adani Power? Adani Power plans to add 1.3 GW in FY27, 1.6 GW in FY28, and 3.2 GW in FY29, totaling 6.1 GW of new thermal capacity. 4. How did Adani Power stock perform during Thursday's trade? At 10:14 am on Thursday, the stock traded 0.99 percent higher at Rs 209.30 on the BSE, hitting an intraday high of Rs 211.35. 5. What is Adani Power's market share in India's thermal power sector? Adani Power accounts for 24 percent of private thermal capacity and 8 percent of aggregate coal and lignite-based power capacity in India. https://trendkia.com/en/market/motilal-oswal-ne-adani-power-para-di-baya-ki-salaha-kshamata-vistara-ke-dama-para-250-rupaye-ka-diya-tarageta-26855 TrendKia — Har trend, sabse pehle.