Adani Power

Adani Power shares rose 109% in a month. Should You Buy, Hold or Sell? | Rare Techy


Adani Power engaged in the power utility business hit a new high of Rs 259.20, gaining 5 per cent on the BSE in intra-day trade on Friday. With today’s rally, the stock has rallied 109 percent in the past month from the Rs 123.75 level. It is also included in the list of top-50, the most valued companies, in terms of market capitalization (market captialization), in the country. Adani Power stands at 49th position in the overall market cap ranking, surpassing personal products company Dabur India (Rs 98,470 crore) and real estate major DLF (Rs 95,052 crore), the data shows.

Adani Power is the sixth Adani Group Company to feature in the top 50 most valued companies. Adani Green Energy (Rs 4.44 trillion), Adani Transmission (Rs 2.92 trillion), Adani Total Gas (Rs 2.66 trillion), Adani Enterprises (Rs 2.51 trillion), Adani Ports and Special Economic Zone (Rs 1.85 trillion) others have the market. cap of more than Rs 1 trillion each. Recently listed Adani Wilmar is in the 52nd position in the overall ranking with a market cap of Rs 94,493 crore, the data shows.

Adani Power has posted a consolidated net profit of Rs 218.49 crore for the third quarter of FY22 (Q3FY22). The company lost Rs 288.74 crore while total income stood at Rs 5,593.58 crore relative to Rs 7,099.20 crore in the same period a year ago.

Adani Power, part of the diversified Adani Group, is India’s largest private thermal power producer. The company has an installed thermal power capacity of 12,410 MW spread across six power plants in Gujarat, Maharashtra, Karnataka, Rajasthan and Chhattisgarh, apart from a 40 MW solar power plant in Gujarat.

“As the largest producer of edible oil (~19 percent share) with access to Wilmar’s global bond (owning 44 percent share), AWL enjoys significant resources (strong relationships with major suppliers, units close to ports), supply chain and more scale advantages domestic peers to ensure an efficient cost structure that is important for low-margin business,” said analysts at JP Morgan.

Santosh Meena, head of research, Swastika Investmart Ltd., said: “Electricity demand is rising and is expected to exceed 2021 peak power demand by more than 200 gigawatts (GW). Daily peak power demand for Q4 FY22 averaged 187 gigawatts (GW). During 1 -April 12, the average daily peak demand is more than 194 GW. This trend will continue not only for this year but in the long term. India’s power demand is on the cusp of exponential growth due to rising population, increasing temperature, high urbanization, adaptation of EVs, etc. Due to this phenomenon, after a 12-year hiatus, India’s Power Shares rose and outperformed the Nifty and Sensex.”

“This shows rising investor appetite for power stocks. Stocks like Tata Power Ltd., and Adani Power Ltd. have been outstanding performers over the last 2 years. However, we believe that Adani Power Ltd. Our preferred bet is Tata Power and Powergrid, while existing Adani Power investors can maintain a stop loss of 210,” said Meena.

Meanwhile, Adani Power is also set to join the elite club of companies with a Rs 1-trillion market-cap. The company’s market capitalization stood at Rs 99,972 crore as of 10:19 am on Friday, BSE data showed. In comparison, the S&P BSE Sensex was down 0.89 percent at 57,396.

Power stocks were trading higher on Friday at 10:34 am. GE Power India Limited (up 4.27 percent), NHPC (up 3.47 percent), Jaiprakash Power Ventures (up 3.25 percent), Alstom T&D India (up 3.08 percent), NLC India (up 2.77 percent), SJVN (up 1.87 percent), Transformers and Rectifiers (India) (up 1.72 percent), KPI Global Infrastructure (up 1.51 percent) and JSW Energy (up 1.15 percent) were among the gainers high

Disclaimer: Opinions and investment tips by experts in this report are theirs and not those of the website or its management. Users are advised to check with certified experts before making investment decisions.

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