Adani Green Energy share has turned into a multibagger in last 9 months. The stock of the renewable energy firm has risen over 7 times since March 16 this year. Share of Adani Green Energy, which stood at Rs 117 on March 16 rose to its all-time high of Rs 899 on November 2, delivering 668% returns to investors. The large cap stock has gained 3.38% in last three days. Adani Green Energy share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
In one month, the share has gained 16.78% and risen 0.44% during a week.
The stock has gained 852% in one year and risen 416% since the beginning of this year. The rally in the stock has been supported by strong Q1 and FY 20 earnings.
In Q1, the Gautam Adani-led firm reported consolidated net profit of Rs 21.75 crore, supported by higher revenues. The company posted a net loss of Rs 97.44 crore in April-June of 2019-20.
Total income jumped 30 per cent to Rs 878.14 crore during the quarter ended June 30, 2020 as compared to Rs 675.23 crore in the same quarter last year.
In FY20, the Adani Group firm reported narrowing of consolidated net loss at Rs 67.96 crore as compared to net loss of Rs 475.05 crore in FY19. It clocked a 23.37 per cent rise in consolidated revenue to Rs 2,629.70 crore in FY20 against Rs 2130.99 crore in the previous financial year.
Apart from the earnings boost, a series of achievements on the operational front fuelled the rally in the clean energy stock.
On June, 9, 2020, the stock closed 5% higher after the firm said it won a manufacturing-linked solar contract worth Rs 45,000 crore from SECI to develop 8 GW electricity generation capacity and 2 GW equipment manufacturing facility in the country. The project will take the company closer to its target of achieving an installed generation capacity of 25 GW of renewable power by 2025, which in turn will see it committing an investment of Rs 1,12,000 crore ($15 billion) in the renewable energy space over the next five years, the company said.
On September 1, 2020, the share closed 9.44% or Rs 42.80 higher at Rs 496.40 after the Gautam Adani-led group was ranked top solar power generator globally. As per latest ranking of global solar companies by Mercom Capital, Adani Group was placed at top slot for global solar power generation asset owner in terms of operating, under construction and awarded solar projects.
Foreign portfolio investors raised their stake in the firm to 22.43 per cent as of September 30 against 21.52 per cent in the quarter ended June 30.
Mutual funds too raised their holding to 0.09 per cent from 0.01 per cent and high net worth individuals (HNI) to 0.96 per cent from 0.91 per cent. However, retail investors cut their stake to 1.09 per cent in Q2 from 1.43 per cent in Q1.
However, the firm posted weak earnings for quarter ended September. Net profit in Q2 fell over 82% to Rs 17.57 crore due to higher expenses. Consolidated net profit in the quarter ended September 30, 2019 stood at Rs 102.29 crore. Total income rose to Rs 718.14 crore in Q2 against Rs 711.96 crore in the corresponding quarter a year ago.
Adani Green Energy builds and operates solar and wind energy power plants in India. Its commissioned power plants are located in Tamil Nadu, Punjab, Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Chattisgarh, Telangana, and Karnataka. The company is also constructing wind and solar energy power plants in Australia and the United States.