Adani Power Fundamental Analysis – Financials, Future and More
Fundamental analysis of Adani Power: In the last two years, Adani Power has achieved an amazing multi-baler yield of 950%. Similarly, several other Adani Group stocks have skyrocketed over the past 2-3 years, making Gautam Adani the 4th richest person in the world.
In this article, we cover Adani Power's fundamental analysis and also take a brief look at the thermal power generation industry and company history. After that, we will move on to understand your business and its basics. The section is devoted to an examination of competitive advantage and a conclusion summarizes the article at the end.
India is the third largest electricity producer in the world with an installed electricity generation capacity of more than 3,99,496 MW. 8. 1% over the past decade. Of the total production, 53% of the total energy generated was accounted for by coal-fired power plants. This is followed by a 27% share of renewable energy generation.
Despite good power generation figures, India's annual per capita electricity consumption of 1276 in FY21 is still lower than other developing countries such as South Africa and Brazil. This supports the argument that total energy demand in India is expected to grow strongly.
This increase in demand is due to a variety of factors: rising living standards, greater penetration of appliances and household appliances even in rural areas, and increased government focus on increasing the contribution of manufacturing to GDP growth. At the end of the industry overview, let's devote some space to coal-fired power generation since APL operates mostly in the same industry.
According to the NITI Aayog report, coal-fired thermal power generation will increase by more. In the next decade. However, its share of India's overall power generation mix will decline to 50-55% from the current 72%. We have already covered the industry overview as part of Adani Power fundamental analysis.
Let's read more about the company itself. Adani Power Limited (APL) was established in 1996 as a power trading company. Since then it has grown organically and inorganically to become the largest private producer of thermal energy in India. installed its first power plant in Mundra, Gujarat in 2006. Today, Adani Power has four coal-fired power plants in Gujarat, Maharashtra, Karnataka, and Rajasthan with a power generation capacity of 13,610 MW.
It also has a 40MW solar power plant in Gujarat. It has 5 other power plants nearby which are currently under construction. The energy company has a long history of applying the best corporate sustainability practices. In 2019, it ranked 30th in the DJSI-S&P Global ESG Benchmark. In addition, APL was the first company in the world to build a supercritical coal-fired power plant under the Clean Development Mechanism (CDM) of the Kyoto Protocol.
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