Antique is still calling ~40% upside in Adani Power even after a 19% YoY profit drop in Q3 and softer merchant prices- mainly because of steady execution, long-term PPAs, and capacity expansion despite weaker demand and margins.
Do you think it’s justified to look past the short-term earnings weakness in cyclical sectors like power and lean into structural growth drivers?
For example:
• Is capacity expansion starting to matter more than near-term earnings?
• Or is there still real risk that current demand headwinds and tariff pressure could lag into FY27–28?
In cyclical sectors like power, short-term profit drops don’t always drive the stock. Markets often look past weak quarters if future cash flows and contracts look solid.
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