Adani Power Limited (ADANIPOWER.NS) stock analysis

In our weekly check, Adani Power Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5.

About Adani Power Limited

Adani Power Limited is an Utilities company (Independent Power Producers) based in India, listed on NSE as ADANIPOWER.NS.

What our checks show for ADANIPOWER.NS

Red flags

• Analysts expect the net margin to shrink by 4.7 points from today's 24.2%.
• Free cash flow is negative (-9.4% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 89% from a peak. Would you have held through that?
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The gross margin fell by 2 points, to 38.6%: costs are rising faster than prices.
• The price swings a lot: 35.1% annual volatility. Expect large ups and downs.
• Recovering from its deepest fall took about 2.8 years.

Strengths

• Debt is low: 0x equity.
• The net margin rose by 6.4 points over 5 years, to 24.2%.
• Operating cash flow is 1.25x net profit: the profit arrives as real cash.
• Revenue grew 15% a year over the last 3 years.
• Earnings per share grew 14.6% a year over the last 3 years.
• The company keeps 24.2% of its revenue as net profit.

Similar companies

GULF-R.BK · 9503.T · NTPC.BO · POWERGRID.NS · 9532.T · 9531.T

Questions

What grade does Adani Power Limited (ADANIPOWER.NS) have?

In our weekly check, Adani Power Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 3, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ADANIPOWER.NS stock?

This week's biggest flags for Adani Power Limited: Margins expected to shrink, Weak free cash flow, Deep past fall. In total 8 of 25 checks show a warning or a red flag.

What does Adani Power Limited do?

Adani Power Limited is an Utilities company (Independent Power Producers) based in India, listed on NSE as ADANIPOWER.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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