Adani Power shares have gained 27% so far in 2026, and domestic brokerage Elara Capital has initiated coverage on the stock with an ‘Accumulate’ rating and a target price of ₹220, implying an upside of over 16% from its closing price of ₹189 on the BSE on Friday, 9 October.
In its coverage initiation report, Elara Capital said the company offers strong medium-term growth visibility, supported by a substantial capacity expansion pipeline, increasing long-term power purchase agreement (PPA) coverage and opportunities in the merchant power market. However, the brokerage cautioned that much of the company's growth potential is already reflected in its current valuation.
Elara Capital has set its target price at ₹220, based on 12 times its estimated FY29 enterprise value-to-EBITDA (EV/EBITDA).
However, Adani Power shares have remained under pressure in the near term, declining 4.04% over the past week and 6.90% over two weeks. The stock has fallen 11.89% in the past month and 12.62% over the last three months, indicating sustained weakness in recent trading.
Elara Capital believes thermal power will continue to play a crucial role in India's power system over the near- to medium-term by providing reliable, dispatchable baseload electricity to complement the growing share of renewable energy.