Adani Energy shares jumped 18% to hit 52-week high; here's what analysts say
Adani Energy share price: The Adani Group's power transmission and distribution company has recently raised funds through a Qualified Institutional Placement (QIP) route, a way used by listed companies to raise funds from large institutions.
- Aug 1, 2024,
- Updated Aug 1, 2024 7:29 PM IST
Shares of Adani Energy Solutions Ltd (formerly known as Adani Transmission Ltd) on Thursday jumped 18.49 per cent to scale their one-year high value of Rs 1,347.90 during intraday trade. The stock eventually settled 12.04 per cent higher at Rs 1,274.55 on BSE.
The Adani Group's power transmission and distribution company has recently raised funds through a Qualified Institutional Placement (QIP) route, a way used by listed companies to raise funds from large institutions.
Floor price for the issue was set at Rs 1,027.11, the company said without sharing any investor names. The share sale was apparently for $700 million, with a 'greenshoe' option (over-allotment clause) for a further $300 million.
On the earnings front, Adani Energy's revenue from operations came at Rs 5,378.6 crore during the June 2024 quarter (Q1 FY25), up 47 per cent from Rs 3,663.91 crore in the year-ago period. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 30 per cent year-on-year (YoY) to Rs 1,628 crore.
It, however, recorded a consolidated loss of Rs 823.92 crore in Q1 FY25 as against a profit of Rs 175 crore in the year-ago period on account of a one-time exceptional loss of Rs 1,506.02 crore due to a power plant divestment.
"The company overall posted a decent set of numbers. The stock has corrected from its peak and has been under a consolidation phase for the past few quarters. Currently, it has shown a strong uptick over the last few sessions," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"Investors with a high-risk appetite can consider adding the stock on dips. With that being said, the power sector's outlook remains positive," Bathini also said.
Technically, support on the counter could be seen at Rs 1,220, followed by Rs 1,200 level. And, a decisive move above Rs 1,300 is required for more upside.
"Adani Energy has recently experienced a notable surge in price and trading volume, propelling it towards the key resistance level of Rs 1,300. A definitive and sustainable breakthrough is essential to spark the next phase of upward movement in the stock. In the event of any short-term downturns, it is anticipated that support will be found at Rs 1,200," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Support will be at Rs 1,200 and resistance at Rs 1,300. A decisive close above Rs 1,300 level may trigger a further upside towards Rs 1,350. The expected trading range for short term will be between Rs 1,175 and Rs 1,350," Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, stated.
Immediate resistance on the counter could be seen around Rs 1,300 level and a decisive breach is required for further upside, said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. Singh mentioned that support will be at Rs 1,220.
Shares of Adani Energy Solutions Ltd (formerly known as Adani Transmission Ltd) on Thursday jumped 18.49 per cent to scale their one-year high value of Rs 1,347.90 during intraday trade. The stock eventually settled 12.04 per cent higher at Rs 1,274.55 on BSE.
The Adani Group's power transmission and distribution company has recently raised funds through a Qualified Institutional Placement (QIP) route, a way used by listed companies to raise funds from large institutions.
Floor price for the issue was set at Rs 1,027.11, the company said without sharing any investor names. The share sale was apparently for $700 million, with a 'greenshoe' option (over-allotment clause) for a further $300 million.
On the earnings front, Adani Energy's revenue from operations came at Rs 5,378.6 crore during the June 2024 quarter (Q1 FY25), up 47 per cent from Rs 3,663.91 crore in the year-ago period. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 30 per cent year-on-year (YoY) to Rs 1,628 crore.
It, however, recorded a consolidated loss of Rs 823.92 crore in Q1 FY25 as against a profit of Rs 175 crore in the year-ago period on account of a one-time exceptional loss of Rs 1,506.02 crore due to a power plant divestment.
"The company overall posted a decent set of numbers. The stock has corrected from its peak and has been under a consolidation phase for the past few quarters. Currently, it has shown a strong uptick over the last few sessions," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"Investors with a high-risk appetite can consider adding the stock on dips. With that being said, the power sector's outlook remains positive," Bathini also said.
Technically, support on the counter could be seen at Rs 1,220, followed by Rs 1,200 level. And, a decisive move above Rs 1,300 is required for more upside.
"Adani Energy has recently experienced a notable surge in price and trading volume, propelling it towards the key resistance level of Rs 1,300. A definitive and sustainable breakthrough is essential to spark the next phase of upward movement in the stock. In the event of any short-term downturns, it is anticipated that support will be found at Rs 1,200," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"Support will be at Rs 1,200 and resistance at Rs 1,300. A decisive close above Rs 1,300 level may trigger a further upside towards Rs 1,350. The expected trading range for short term will be between Rs 1,175 and Rs 1,350," Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, stated.
Immediate resistance on the counter could be seen around Rs 1,300 level and a decisive breach is required for further upside, said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. Singh mentioned that support will be at Rs 1,220.