Rs 92 to Rs 726: This Adani Group stock gave multibagger returns in 3 years; analysts see more upside

Shares of Adani Power hit a record high in early deals today, clocking multibagger returns of 670% in three years. The Adani Group stock, which closed at Rs 91.95 on May 30, 2021 hit a high of Rs 725.75 on BSE in current session. Adani Power shares clocked multibagger returns of 185% and 1315% in one year and five years, respectively.

In the current session, the Adani Group stock climbed 3.98% to a record high of Rs 725.75 against the previous close of Rs 698.20 on BSE. Market cap of the firm rose to Rs 2.74 lakh crore. A total of 2.74 lakh shares of the firm changed hands amounting to a turnover of Rs 19.58 crore on BSE.

The Adani  Group stock has seen low volatility in a year, signals its one year beta of 0.6.

In terms of technicals, the Adani Group stock is trading neither in the overbought zone nor in the oversold zone, shows the relative strength index (RSI) of Adani Power which stands at 67.1.

The Adani Power stock is trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages, signaling the stock is trading in bullish zone.

 Kushal Gandhi, Technical Analyst at StoxBox has a buy call on the stock with a price target of Rs 790.  One should fix a stop loss of Rs 655.

“The price action in Adani Power has potentially been trading in a volatility contraction pattern. This indicates that the big hands are catching the stock at elevated levels by absorbing the available liquidity, garnering bullish strength for trend continuation. The power stock displays robust price strength and EPS strength and is improving buyers’ demand with the progressive uptrend. We reiterate to buy Adani Power for the target of Rs 790 and a protective stop loss at Rs 655,” said Gandhi

Aditya Gaggar, Director of Progressive Shares is also bullish on the stock.

“The stock has given a breakout from a continuation pattern known as a bullish Flag and Pole formation confirmed with a hidden bullish divergence in the RSI. The breakout has occurred after over four months. A reading of 32.97 in ADX indicates the presence of a strong uptrend. As per the pattern, the target is Rs 800," said Gaggar.

Samco Securities believes it's a buy on dip stock and has an accumulate stance on the scrip.

"India's peak electricity demand is projected to reach 260 GW this summer, primarily driven by thermal power. As electricity consumption continues to rise, companies like Adani Power and other power producers are expected to ramp up generation to meet this high demand. Consequently, expanding thermal power capacity will be essential, benefiting Adani Power significantly. We believe Adani Power is still available at reasonable valuations. Investors may consider accumulating the stock during any price corrections," the brokerage said.

Adani Power reported a 48 percent fall in consolidated net profit to Rs 2,737 crore in Q4 against a net profit of Rs 5,243 crore in the year-ago period.

Sequentially, the net profit came flat as against its previous December quarter.

Revenue from operations rose 30 percent to Rs 13,363.69 crore in Q4 from Rs 10,242.06 crore in the same quarter last fiscal.