Adani Power shares recover from Q3 earnings shock; hit 5% upper circuit

Shares of Adani Power rose after five straight sessions of losses today even as the Adani  Group firm’s planned Rs 7,017 crore acquisition of DB Power did not fructify on lapsing of the deadline to complete the transaction. The company said that the long-stop date under the Memorandum of Understanding (MoU) has expired.  

Shrugging off the negative sentiment arising out of the development, the Adani Power stock touched an intraday high of Rs 147.9 , rising 4.97% on BSE. Adani Power shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  

Market cap of the firm rose to Rs 57,044 crore.  Adani Power stock has gained 16% in one year and fallen 50% since the beginning of this year.   

Total 22.10 lakh shares of the firm changed hands amounting to a turnover of Rs 32.26 crore on BSE.   

The share hit a 52 week high of Rs 432.80 on August 22, 2022  and a 52 week low of Rs 108.75 on February 24, 2022.   

In Wednesday’s trade, the Adani Power stock hit another lower circuit of 5% at Rs 140.9 for the fifth straight session. It had slipped 23% since Q3 earnings were announced on February 8, 2023.  

Adani Power logged a 96% decline in consolidated net profit at Rs 9 crore for the December quarter compared with Rs 218 crore in the corresponding quarter of last year. 

Revenue from operations rose 45% year-on-year (YoY) to Rs 7,764 crore in Q3, due to greater regulatory claims, increased operating capacity, and improved tariff realization. 

Abhijeet from Tips2trade said, “Adani Power has strong resistance at  Rs 161 on the Daily charts. Investors should buy only if close is above this level for targets of  Rs 184-199 in the coming weeks. Support will be at Rs 142." 

Prior to the Q3 earnings, sentiment around the Adani Power and other group stocks turned weak after a report by Hindenburg Research alleged accounting frauds, stock manipulations and money laundering around the Adani Group stocks.  

Adani Group called Hindenburg's report as maliciously mischievous and unresearched, which, it said, adversely affected the Adani Group, its shareholders and investors.

Adani Group had said that the timing of the Hindenburg report’s publication clearly betrays a brazen, mala fide intention to undermine the group’s reputation with the principal objective of damaging the follow-on public offering from Adani Enterprises, which was the biggest FPO ever in India. 

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