Adani Power shares hit lower circuit, again. Should you buy on dips?

Shares of Adani Power slumped in Friday's trade to hit lower circuit for the third consecutive session. The stock plunged 5 per cent to settle at Rs 262.25 over its previous close of Rs 276.05. A total of 8.79 lakh shares changed hands. The turnover on the counter stood at Rs 23.19 crore on BSE. The company commanded a market capitalisation of Rs 1,01,148.22 crore.

On BSE, there were 3,62,676 sell orders. On NSE, 32.50 lakh shares changed hands with a turnover of Rs 65.71 crore.

At today's closing level of Rs 262.25, Adani Power has lost 39.41 per cent compared to its August high of Rs 432.80. That said, the stock has ascended by 169.53 per cent from its one-year low level of Rs 97.30, hit in December last year.

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The scrip has slipped 13.56 per cent in the previous five sessions. On a year-to-date (YTD) basis, it has surged 158.88 per cent.

Analysts largely mixed on the counter as it has seen a decline over the past few sessions. One analyst felt that short-term traders could place a 'buy' call for a target range of Rs 326-340 while another hinted at 'buying' it around Rs 250-level.

A R Ramachandran from Tips2trades, said, "Adani Power stock price has corrected well since the past few sessions. Short-term traders can buy on daily charts for a target of 326-340 in the near term. A close below Rs 290 could lead to an even better level of Rs 260 to buy from a long-term perspective."

Manoj Dalmia, Founder and Director, Proficient Equities, said, "Investors can avoid the stock currently as it is under selling pressure. Investors can consider buying it at lower levels at Rs 250."

On the earnings front, Adani Power reported a consolidated net profit of Rs 696 crore for the September quarter (Q2) 2022-23. The Adani Group firm incurred a net loss of Rs 231 crore in the corresponding quarter of the previous fiscal. Total income climbed 52 per cent to Rs 8,446 crore against Rs 5,572 crore in the September quarter of 2021-22.

All seven listed Adani Group entities settled lower today. In addition to Adani Power's decline, shares of Adani Wilmar, Adani Transmission, Adani Ports, Adani Total Gas, Adani Green and Adani Enterprises dropped as much as 9.71 per cent.

Meanwhile, Indian equity benchmarks fell sharply, dragged by state-owned lenders, metals and automobile stocks.

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