Adani Power share price jumps 12% after SEBI clean chit to Group, Morgan Stanley bet

Shares of Adani Power Ltd. gained over 12% Friday, September 19, after brokerage firm Morgan Stanley initiated coverage on the stock, projecting an upside of 29% from its previous closing price.

Morgan Stanley has initiated coverage on the stock, with an "overweight" rating and a price target of ₹818 per share. The stock ended the previous session at ₹633.5 apiece.

The brokerage said Adani power is a good illustration of a turnaround in India's corporate history, with resolution on most regulatory issues and multiple value-accretive acquisitions.

Morgan Stanley said the company will deliver strong earnings growth, driven by the timely completion of projects and power purchase agreement (PPA) wins in the medium-term.

It also forecast that the company's capacity and earnings before interest, taxes, depreciation and amortisation (EBITDA) will rise 2.5 times and 3 times by the financial year 2033, respectively.

New coal Power Purchase Agreements (PPAs) should improve investor confidence in earnings power, Morgan Stanley said.

All five analysts that have coverage on shares of Adani Power have "buy" recommendations on the stock.

Adani Group stocks, including Adani Power are also in focus after market regulator Securities and Exchange Board of India (SEBI) gave a clean chit to the Group and its top executives on some allegations made by short seller Hindenburg Research, as it found no violation of laws, fraudulent practices, market manipulation or insider trading.

Shares of Adani Power are trading 12% higher at ₹710. The stock has gained 21.6% in the last six months going into Friday's trading session.

Also Read: Adani Group stocks in focus after SEBI clean chit on most Hindenburg allegations