Tata power vs adani power

Tata Power vs Adani Power-Which Stock is Better for Future?

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Analyze the TATA Power share price target and Adani power share price target to know more. Tata Power vs Adani Power 

The energy and power sector is considered as a future sector, is not only in the country but worldwide and today everyone is in search of such future sectors in search of future stocks where he can get multiple returns in upcoming years.

And in this article, we bring the comparison of two energy sector stocks which you may not have heard and not anyone has told you about that these both stocks are amazing stocks of the energy sector but there are some negative points, you have to decide upon that I will introduce the detailed analysis.

We will tell you the latest update with the introduction of the stock so that you can take decisions by being your own boss. 

What is the reason?

We will start the article with the analysis of the renewable sector if the sector has the potential then only the stock will have the potential and this is the specialty of our article, that whenever we analyze any stock we try to analyze the sector too, and here the renewable sector is considered as the future so What is the reason?

There can be many points but the major reason is the increasing demand of electricity in the country. In the first half of October 2021, India’s electricity demand in the country has increased by 4.9% while the supply decreased to 1.4% to fulfill the demand of electricity the government used coal and solar energy. 3.2% of electricity from the coal and more than 30% from the solar energy is generated. The government had lots of pressure for the supply of electricity whose consequences leads to the coal crisis. You saw that the country had a deficiency of the coal. By the way, the government is telling that they will fulfill the demands of the coal but let’s see that till when it will happen after the deficiency of the coal, the more focus goes towards solar energy due to the increase in the population the demand of and the consumption of the electricity is increasing and supply is low. 


If we talk about the current situation then the total electricity of the country the 30% is generated from renewable energy but the government aims to produce 80% renewable energy till 2030. But now an opportunity is coming this year only, the government is also ready for execution from renewable energy the climate change issues will also decrease with the production of electricity. This was the major reason where electricity can also be produced and can stop climate change too. Because it is also a big concern and it needs to be corrected many companies of the country are active in this sector in which Adani Power, Tata Power, Borosil renewables, Gail India, JSW energy Suzlon energy like names are there. 


But in which Tata Power and Adani Power are famous. 

When any investor goes to invest in the energy sector. Then they have the confusion to select among both of these. 

So here we bring some data and facts who is more powerful and who can give you more returns and how it is, and analyze Tata Power share price target & Adani Power share price target

So here we bring some data and facts who is more powerful and who can give you more returns and how it is, and analyze Tata Power share price target & Adani Power share price target

Adani Power, a subsidiary of the Adani Group, is India’s largest private thermal power company.

It is the first company in India to build a coal-fired supercritical thermal power plant.

To sell power, the company has a number of short-term and long-term power purchase agreements (PPAs). It accounts for 6% of India’s total capacity for power generation.

It is also interested in renewable energy and operates a solar power plant in Gujarat.

Tata Power is a diversified power company that is part of the prestigious Tata Group.

Its presence across the value chain, from power generation to transmission and distribution via traditional and renewable sources, has helped it establish itself as India’s largest integrated power company.

The company is also involved in consumer-oriented businesses such as solar rooftops, pumps, microgrids, and EV charging stations.

While Tata Power has a presence throughout the power sector value chain, it also has a sizable renewable energy portfolio.

Adani Power is solely involved in the generation of thermal power.

Adani Power vs Tata Power Business Overview

tata power vs adani powers

Tata power is the largest renewable energy company in the country with renewable energy capacity of 2.6 GW in 11 states. The company plans to take the electricity production to a massive 15 GW by 2025

Adani power is the biggest company of Adani Group and known as the largest private thermal private producer of the Indian interesting fact about the company is that it is the first company in the world to set up a coal-based supercritical thermal power project.

Adani Power vs Tata Power Revenue Growth (2016-2021)

tata power vs adani power

The revenue of Tata Power has grown at a compound annual growth rate (CAGR) of 3.1% against 4.1% of Adani Power in the last five years.

Despite India’s under penetration of power, the top private players didn’t see strong growth in their revenues. This is mainly because of a slowdown in economic growth and lower agricultural demand due to heavy monsoons.

In the last five years, Adani Power’s volume fell 0.3 percent while Tata Power’s fell 2.3 percent (CAGR).

Adani Power’s volumes were more resistant to the economic slowdown, owing to the company’s long-term power purchase agreements with almost all of its clients.

Tata Power’s volume decline is greater, owing to the company’s gradual phase-out of coal-based energy sources in favor of renewable energy.

Tata Power vs Adani Power Which is better?

Adani Power outperforms Tata Power in terms of revenue growth and operating margin, indicating operational efficiency.

Even during an economic downturn, the company’s volumes were not significantly damaged, owing to long-term power purchase agreements with its clients.

Tata Power, on the other hand, leads in terms of net profit margins and greater return ratios. Its leverage is lower than Adani Power’s, indicating a favorable credit profile.

In addition, the firm generates positive free cash flows and has paid dividends to stockholders for the previous 20 years.

Tata Power’s shares are underpriced when compared to Adani Power.

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