Adani Power Ltd.
ISIN: INE814H01029 • Market Cap: ₹3.93 Lakh Cr
The 5-Pillar Quality Audit for Adani Power Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (37.4%), Return on Capital Employed (15.7%), and equity compounding (19.8%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.82 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (5.5%) and 3Y PAT CAGR (-11.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 27.56 vs PEG of 1.45 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 75.0%, backed by 15.8% institutional ownership.
Key Fundamental Strengths
Robust Equity Compounding (ROE: 19.8%)
Shareholder equity compounds at a healthy 19.8%, exceeding average Indian equity benchmarks.
Consistent Market Standing (Large Cap)
Established player in the Power sector with an overall fundamental quality score of 70/100.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Power)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Power space.
Quantitative Strategy Eligibility
Checking ADANIPOWER against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 70/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Power Sector Peer Comparison
Compare ADANIPOWER directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Adani Power Ltd. (ADANIPOWER)Current | 70/100 | ₹3.93 Lakh Cr | 27.56 | 15.7% | 0.82 | — |
| NTPC Ltd. (NTPC) | 69/100 | ₹3.25 Lakh Cr | 11.69 | 8.3% | 1.32 | View |
| Power Grid Corporation of India Ltd. (POWERGRID) | 64/100 | ₹2.44 Lakh Cr | 15.36 | 10.6% | 1.47 | View |
| Adani Green Energy Ltd. (ADANIGREEN) | 56/100 | ₹2.12 Lakh Cr | 119.11 | 8.3% | 5.24 | View |
| Adani Energy Solutions Ltd. (ADANIENSOL) | 66/100 | ₹1.88 Lakh Cr | 64.52 | 8.7% | 2.02 | View |
| Tata Power Co. Ltd. (TATAPOWER) | 55/100 | ₹1.21 Lakh Cr | 31.28 | 7.4% | 1.81 | View |
Frequently Asked Questions: Adani Power Ltd.
Q:What is the 5-Pillar Fundamental Score for Adani Power Ltd. (ADANIPOWER)?
Adani Power Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (86/100), Financial Health (72/100), Growth (35/100), Valuation (75/100), and Ownership Quality (82/100).
Q:Is ADANIPOWER fundamentally strong for long-term investment?
Yes, ADANIPOWER exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 19.8% and a debt-to-equity ratio of 0.82.
Q:Does ADANIPOWER pass the Coffee Can Investing filter?
Yes! ADANIPOWER satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does ADANIPOWER compare against other Power peers?
Within India's Power sector, ADANIPOWER trades at a P/E of 27.56 and generates an ROCE of 15.7%. Compare its 5-Pillar score of 70/100 against top sector peers like NTPC Ltd. (69/100), Power Grid Corporation of India Ltd. (64/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.