Maintain 'reduce' on Adani Power – TP Rs.42 - Geojit BNP Paribas Financial Services

- Reduce rating on Adani Power is maintained with a target price of Rs.42. The stock is currently traded in the range of Rs.50.

- Coal price pooling appears to be significantly delayed. Without a firm proposal in this front, it is not possible to ascribe any upside to Adani Power from pooling. Also, it seems that a reset of unviable power tariff is unlikely. In the event of a reset in tariff, a 33% upside in stock price could be expected from the current level.

Source : Equity Bulls

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