Operating Margin

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Price: 134.15 INR -0.26%

Market Cap: ₹517.4B

29.1%

Improving

by 3.3%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

29.1%

Operating Income

₹161.3B

Revenue

₹554.7B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

29.1%

Operating Income

₹161.3B

Revenue

₹554.7B

Peer Comparison

Country		Company	Market Cap	Operating Margin
IN		Adani Power Ltd NSE:ADANIPOWER	2.6T INR	Loading...
US		Vistra Corp NYSE:VST	55.4B USD	Loading...
SA		ACWA Power Co SAU:2082	184.5B SAR	Loading...
IN		NTPC Ltd NSE:NTPC	3.4T INR	Loading...
CN		CGN Power Co Ltd SZSE:003816	194.9B CNY	Loading...
CN		China National Nuclear Power Co Ltd SSE:601985	179.1B CNY	Loading...
TH	G	Gulf Energy Development PCL SET:GULF	702.2B THB	Loading...
DE		Uniper SE XETRA:UN0	15.6B EUR	Loading...
US		Talen Energy Corp NASDAQ:TLN	16.3B USD	Loading...
CN		SDIC Power Holdings Co Ltd SSE:600886	104.2B CNY	Loading...
CN		Huaneng Power International Inc SSE:600011	100.6B CNY	Loading...

Market Distribution

Min	-153 833.3%
30th Percentile	2.7%
Median	7.3%
70th Percentile	13.2%
Max	9 977%

Other Profitability Ratios

Adani Power Ltd
Glance View

Economic Moat

Narrow

Market Cap

517.4B 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

Undervaluation 8%

Intrinsic Value

Price

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.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Adani Power Ltd
BSE:533096

Peer Comparison

Market Distribution

Other Profitability Ratios

Adani Power Ltd
Glance View

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Adani Power Ltd BSE:533096