ADANIPOWER (Adani Power Ltd) vs BSE Sensex 30 Comparison

ADANIPOWER

BSE Sensex 30

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ADANIPOWER

BSE Sensex 30

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ADANIPOWER

BSE Sensex 30

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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BSE Sensex 30

ADANIPOWER

2082

VST

NTPC

601985

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Adani Power Ltd
Glance View

Economic Moat

Narrow

Market Cap

2.1T INR

Industry

Utilities

Adani Power Ltd, a prominent player in the Indian energy sector, is an integral pillar of the Adani Group, a multinational conglomerate notable for its diverse industrial ventures. Established in 1996, the company was formed with a vision to address the burgeoning energy demands of a rapidly developing India. Adani Power has since transformed itself into the largest private thermal power producer in the country. Its core business revolves around generating electricity through thermal power plants, with an impressive portfolio of power stations strategically located across India. These facilities predominantly utilize coal as a fuel source, a choice driven by both economic feasibility and the energy policies prevailing within the region. This operational model is underpinned by long-term Power Purchase Agreements (PPAs) with state utilities, ensuring stable revenue streams despite the volatility that often characterizes the energy market. The company's financial success is further bolstered by an intricate logistical network, which encompasses coal procurement, transportation, and efficient power distribution. Adani Power meticulously sources coal from both domestic and international markets, leveraging economies of scale and strategic partnerships to optimize costs. In recent years, the company has taken strides towards sustainability and diversification, recognizing the global shift towards renewable energy platforms. While coal-based power remains its mainstay, Adani Power is gradually expanding its footprint in the renewable energy space, investing in solar power projects to align with national policies on green energy transitions. This strategic hybrid approach not only solidifies its presence across various sectors of the energy landscape but also fortifies its fiscal robustness, ensuring resilience against market fluctuations and regulatory shifts.

View ADANIPOWER Analysis

ADANIPOWER Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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IN		NTPC Ltd NSE:NTPC	Add
CN		China National Nuclear Power Co Ltd SSE:601985	Add
CN		CGN Power Co Ltd SZSE:003816	Add
TH	G	Gulf Energy Development PCL SET:GULF	Add
CN		SDIC Power Holdings Co Ltd SSE:600886	Add
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HK		China Resources Power Holdings Co Ltd HKEX:836	Add

DE		Uniper SE XETRA:UN01	Select
SA		ACWA Power Co SAU:2082	Select
US		Vistra Corp NYSE:VST	Select
IN		NTPC Ltd NSE:NTPC	Select
CN		China National Nuclear Power Co Ltd SSE:601985	Select
CN		CGN Power Co Ltd SZSE:003816	Select
TH	G	Gulf Energy Development PCL SET:GULF	Select
CN		SDIC Power Holdings Co Ltd SSE:600886	Select
CN		Huaneng Power International Inc SSE:600011	Select
HK		China Resources Power Holdings Co Ltd HKEX:836	Select

DE		Uniper SE XETRA:UN01	Add
SA		ACWA Power Co SAU:2082	Add
US		Vistra Corp NYSE:VST	Add
IN		NTPC Ltd NSE:NTPC	Add
CN		China National Nuclear Power Co Ltd SSE:601985	Add
CN		CGN Power Co Ltd SZSE:003816	Add
TH	G	Gulf Energy Development PCL SET:GULF	Add
CN		SDIC Power Holdings Co Ltd SSE:600886	Add
CN		Huaneng Power International Inc SSE:600011	Add
HK		China Resources Power Holdings Co Ltd HKEX:836	Add

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ADANIPOWER

vs

BSE Sensex 30

Stocks Performance
ADANIPOWER vs BSE Sensex 30

Performance Gap
ADANIPOWER vs BSE Sensex 30

Performance By Year
ADANIPOWER vs BSE Sensex 30

Competitors Performance
Adani Power Ltd vs Peers

Adani Power Ltd
Glance View

Company

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ADANIPOWER vs BSE Sensex 30

Stocks Performance ADANIPOWER vs BSE Sensex 30

Performance Gap ADANIPOWER vs BSE Sensex 30

Performance By Year ADANIPOWER vs BSE Sensex 30

Competitors Performance Adani Power Ltd vs Peers

Adani Power Ltd Glance View

Company

Help

Tools

Stocks

ADANIPOWER

vs

BSE Sensex 30

Stocks Performance
ADANIPOWER vs BSE Sensex 30

Performance Gap
ADANIPOWER vs BSE Sensex 30

Performance By Year
ADANIPOWER vs BSE Sensex 30

Competitors Performance
Adani Power Ltd vs Peers

Adani Power Ltd
Glance View