Widely read:
Adobe Stock
Adani Power lit up trading screens today. The stock climbed over 3 per cent to Rs 589, fuelled by news that its board will meet on Friday (August 1, 2025) to discuss a share split. The move, aimed at making shares more affordable and liquid, has caught the market’s attention.
What’s driving the spike?
The rally isn’t just about a technical tweak. Splits tend to attract retail flows, and coupled with the company’s steady earnings and strong return ratios, sentiment has tilted bullish. Traders are already pricing in the potential buzz if the board green-lights the proposal.
Why it matters
- Retail-friendly move: A split can lower per-share price, widening the investor base.
- Solid operating base: Steady returns, expanding capacity and robust EPS keep the core story intact.
- Valuation room: Trading at ~17x earnings versus an industry average of ~22x, there’s scope for catch-up.
What’s next for investors
If approved, a split could inject liquidity and pull in new retail buyers, adding near-term momentum. But beyond the buzz, it’s the fundamentals – ROE strength and earnings visibility – that make this worth tracking. Keep an eye on the board’s decision and broader Adani Group developments before piling in.
About the company
Adani Power operates India’s largest private thermal power fleet, with plants located across Gujarat, Maharashtra, Rajasthan, Karnataka and other states, totalling 12,450 MW. It also has a 40 MW solar project and an upcoming 1,600 MW Jharkhand unit, making it a key player in the nation’s energy grid.
Below is a table showing the company’s key metrics.
| Metric | Value |
|---|---|
| Market cap | Rs 2.2 lakh crore |
| ROE | 25.6 per cent |
| ROCE | 22.9 per cent |
| P/E ratio | 17 |
| P/B ratio | 3.9 |
| EPS | Rs 33.5 |
| Book value | Rs 146.1 |
| Figures are TTM | |
Value Research Online ratings
- Overall: 4/5
- Quality: 8/10
- Growth: 8/10
- Valuation: 5/10
- Momentum: 4/10
Think beyond the buzz
Short-term triggers like stock splits can be exciting, but it’s long-term discipline that really moves the needle. This is because if you had bought shares of Adani Power worth Rs 10,000 around five years back, your investment would have been valued at nearly Rs 1.7 lakh today. The real edge isn’t about timing every headline but owning quality businesses and letting time do the heavy lifting.
If you want to focus on stocks with strong fundamentals and avoid getting lost in short-term chatter, check out Value Research Stock Advisor. It’s where thousands of investors find expert-picked, long-term compounders designed to grow wealth steadily.
Stop chasing the next spike. Start building lasting gains with a clear, proven strategy.
Disclaimer: This article was crafted with the aid of artificial intelligence and meticulously reviewed and edited by our human experts to ensure accuracy and provide valuable insights. It's intended for informational purposes only. We encourage you to conduct your own thorough research before making any investment decisions.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
