Shares of Adani Power have surged over 400 per cent from their 52-week low in less than a year. Adani Power stock, which hit a 52-week low of Rs 69.95 on August 24, 2021, touched a an all-time high of Rs 354 on August 4, 2022, translating into a gain of 406 per cent during the period.
An investment of Rs 1 lakh in the stock a year ago would have grown to Rs 5.06 lakh today.
The share touched an all-time high on August 4 after the firm announced a set of stellar earnings for the quarter ended June 2022. The stock touched a high of Rs 354, rising 3.81 percent to the previous close of Rs 341. Later, the stock closed 1.79 per cent higher at Rs 347.10.
A total of 31.09 lakh shares of the firm changed hands, amounting to a turnover of Rs 107.71 crore on the BSE. Market cap of the company rose to Rs 1.33 lakh crore on BSE. Adani Power stock stands higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The stock has zoomed 285.24 per cent in a year and risen 248 per cent in 2022.
The rally in the stock came after Adani Power posted an over 17 times rise in its consolidated net profit at Rs 4,780 crore for the quarter ended June, 2022. The firm reported Rs 278 crore profit in the corresponding quarter last year.
Total revenue in Q1 more than doubled to Rs 13,723 crore compared with Rs 6,568.86 crore in the corresponding previous quarter, said Adani Power on August 3.
Consolidated EBITDA or operating profit zoomed 227 per cent to Rs 7,506 crore in Q1 against Rs 2,292 crore in the year-ago period. It includes prior period revenue recognition of Rs 4,212 crore against Rs 657 crore during the respective periods.
In Q1 of the current fiscal, 15.02 lakh public shareholders held 25.03 per cent stake or 96.53 crore shares in the firm.
Eight promoters held 74.97 per cent stake or 289.16 crore shares in the last quarter. 14,93,188 public shareholders held 23.08 crore shares of the firm, amounting to a stake of 5.99 per cent with individual share capital of up to Rs 2 lakh.
616 public shareholders held 3.89 crore shares of the firm, amounting to a stake of 1.01 per cent with individual share capital over Rs 2 lakh.
Returns of Peers
The firm has outperformed its peers in the stock market. While shares of PowerGrid Corp gained 26.18 per cent in one year, NTPC managed to clock 31.58 per cent returns for its shareholders. Stock of another peer Tata Power gained 73 per cent during the period.
Here's a look at what analysts said on the outlook of Adani Power stock.
AR Ramachandran, Co-founder and Trainer, Tips2Trades
"Strong Q1FY23 earnings with consistent buying in Adani Group stocks have led to a phenomenal uptrend in Adani Power along with the other power stocks. Currently though, Adani Power looks overbought on the charts and investors are advised to book profits at current levels and wait for a dip near Rs 298- Rs 305 to initiate fresh buy positions."
Tirthankar Das, Head of Technical Research, Ashika Group
"Adani Power stock has witnessed buying demand in the last one month forming higher peak and higher trough in the weekly time frame. The stock has generated a breakout above the rounding formation of the last 1.5 months signaling resumption of up move and offers fresh entry opportunity. The stock has immediate support at Rs 285- Rs 290 levels being the confluence of the 50 DMA and the 23.6 per cent retracement of the entire up move since March 20 (Low: 23; High: Rs 344). However, amid all the optimism, bearish Harmonic pattern ABCD might be in the formation stage, though steady sustenance above of Rs 350 supported by strong volume can negate the said pattern. Hence, investors can accumulate the stock at dip towards Rs 300 to ride the next leg of up move of Rs 380-Rs 385."
Manoj Dalmia, founder and director, Proficient Equities
"Adani Power reported a consolidated net profit at Rs 4,780 crore for the June quarter. It reported a consolidated net profit of Rs 278 crore in the corresponding period last financial year. The company's consolidated revenue from operations rose 109 per cent to Rs 13,723 crore compared to Rs 6,569 crore last year. The stock has been forming higher highs and lows and might face some resistance at the current levels it can fall till Rs 295 levels in the short term."
Ravi Singh, vice president and head of research, Share India
"Adani Power has posted impressive earning growth numbers in Q1 mainly contributed by the surge in power demand throughout the period. On the technical setup, the counter is witnessing surge in volumes and volatility. The stock is showing strength on the major momentum indicators like RSI, MACD, MAs both on daily and intraday chart. We may expect the counter to continue its rally for the target of Rs 380 levels in the near term."
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