Adani Power shares tumble 6% on profit booking after 35% rally in 3 days

Shares of Adani Power declined as much as 6% to their day’s low of Rs 160.25 on the NSE on Tuesday, September 23, after investors booked profit following a massive 35% surge in the counter after the company’s 1:5 stock split and positive brokerage views amid SEBI’s clean chit on stock manipulation.

The stock turned ex-split yesterday, following shareholder approval earlier this month, a move aimed at making the company’s shares more accessible to retail and small investors. The stock ended the session in a 20% upper circuit on Monday.

Also read: Adani Power shares crash 80% in just one day! Is that true?Last week, Morgan Stanley initiated coverage on Adani Power with an Overweight rating and a price target of Rs 818 per share. The brokerage highlighted Adani Power as India’s largest private coal-based independent power producer with 18.15 GW of operational capacity. It projected the company’s portfolio to nearly 2.5x to 41.9 GW by FY32, lifting its market share in coal-based capacity from 8% in FY25 to 15% by FY32.

The report projects EBITDA to triple by FY33, reaching Rs 67,200 crore, reflecting a 17% CAGR over FY25–33. Net profit is forecast at Rs 11,740 crore in FY26, rising to Rs 15,316 crore by FY28. Revenue is estimated at Rs 55,015 crore in FY26, increasing to Rs 70,057 crore by FY28. Operating margins are expected to remain strong, with EBITDA rising from Rs 21,305 crore in FY25 to Rs 30,453 crore in FY28.

Much of the buying also came on the back of the Securities and Exchange Board of India (Sebi) clearing the Adani Group of stock manipulation allegations, reinforcing investor confidence in the conglomerate. The market regulator, in two detailed orders on Thursday, dismissed claims by U.S.-based short-seller Hindenburg Research that Adani entities had routed funds through related parties to manipulate stock prices.

Read more: Jefferies finds Adani Green Energy shares trading at 63% discount. Check target price

It isn’t just Adani Power. Other Adani Group companies, such as Adani Green Energy, Adani Energy Solutions, Adani Ports and Special Economic Zone, Adani Total Gas, slipped up to 4% in the morning. The flagship firm, Adani Enterprises, also edged lower.

On Monday, the combined market capitalization of all 10 Adani Group stocks jumped by Rs 1.7 lakh crore in just two trading sessions to cross the Rs 15 lakh crore mark.

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