New Delhi, July 7 -- Brokerage firm IIFL Capital has initiated coverage on Adani Power share price, giving 'buy' rating to the Adani Group stock, with a target price of Rs.240 apiece, seeing an upside potential up to 9%.

In a recent note, the brokerage firm said that it likes Adani Power's strategy of capturing countercyclical arbitrage in asset creation, which earns outsized returns in a structurally 'utility' sector.

"With a large growth pipeline, industry leading execution, and complementary group renewables and energy-management businesses, we estimate Adani can quadruple Ebitda by FY33-35E. While 60%+ of our fair value rests on unexecuted projects and the stock trades at a rich 4.6x FY28E P/BV, we think its industry-leading asset b...