Morgan Stanley's Bullish Outlook on

ADANIPOWER

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Overweight' Rating and "Top Pick" Status: Morgan Stanley has initiated coverage on

with an "Overweight" rating, calling it a "good illustration of turnaround in India's corporate history" and a "top pick" in the utilities sector. This positive call follows the market regulator SEBI clearing the Adani Group of stock manipulation allegations, which were made by a US-based short-seller. Significant Growth Projections: The international brokerage projects that Adani Power will see substantial growth in the coming years. It forecasts the company's capacity to increase by 2.5 times and its EBITDA to jump by 3 times by the financial year 2033. Morgan Stanley has set a target price of ₹818 per share, suggesting a potential upside of approximately 30% from its recent closing price. Key Strengths and Competitive Advantages: Morgan Stanley's positive outlook is based on several key factors. Adani Power is already India's largest private power producer and the second-largest thermal developer after NTPC, holding an 8% market share. The company also maintains a strong balance sheet with a projected net debt-to-EBITDA ratio of 1.5x for FY25, and expects to fund a majority of its upcoming capital expenditure through internal accruals. The brokerage also highlights the company's strategic acquisitions, a strong track record of project execution, and an ability to secure power purchase agreements (PPAs). Leveraging India's Energy Demand: The report notes that India's growing energy demand, driven by industrialization and urbanization, provides a favorable backdrop for Adani Power. The company's expansion is crucial for meeting the country's need for reliable and cost-effective electricity, which is essential for initiatives like "Make in India." Following the news, Adani Power's shares surged by over 13% on September 19, demonstrating strong investor confidence.