Adani Power shares see early rally post Q4 earnings

Shares of Adani Power are in focus today after the Adani Group firm reported a 13% rise in Q4 profit. Adani Power’s consolidated net profit after tax (PAT) rose 12.9 per cent to Rs 5,242.48 crore as compared to Rs 4,645 crore for Q4 FY22.

Adani Power stock climbed 3.35% to Rs 247.75 against the previous close of Rs 239.70 on BSE. A total of 1.46 lakh shares of the firm changed hands amounting to a turnover of Rs 3.55 crore on BSE. Market cap of the firm stood at Rs 92,065 crore on BSE. Later, the stock turned flat, trading 0.40% lower at Rs 238.75 on BSE

The share hit a 52 week high of Rs 432.80 on August 22, 2022 and a 52 week low of Rs 132.55 on February 28, 2023. Considering the current market price, the stock has lost 42.59 per cent from the yearly high.

In terms of technicals, the relative strength index (RSI) of Adani Power stands at 74.7, signaling it's trading in the overbought zone. The stock has a beta of 1.3, indicating very high volatility in a year. Shares of Adani Power are trading higher than the 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

Of late, Adani Power stock has delivered negative returns for investors due to very high market volatility and rising interest rates.  The stock has fallen 17.26% in a year and lost 19% in 2023.

Meanwhile, the BSE power index clocked losses of 4.23 per cent this year and lost 21.43 percent in the last one year. In three years, the BSE power index zoomed 170 per cent. 

Consolidated total revenue for Q4 FY23 came at Rs 10,795 crore as compared to Rs 13,308 crore in Q4 FY 2021-22.

The company said its revenue for Q4 FY 2022-23 includes de-recognition of revenue from operations pertaining to prior periods amounting to Rs (-) 194 crore and recognition of other income pertaining to prior periods amounting to Rs 325 crore.

 Consolidated total revenue for FY23 climbed 35.8 per cent to Rs 43,041 crore in FY23 as compared to Rs 31,686 crore in FY22. The company said the improved revenue and profit are on the back of improved tariff realisation, high import coal price, and higher one-time revenue recognition.

The consolidated profit before tax for FY 2022-23 came at Rs 7,675 crore as compared to Rs 6,577 crore in FY 2021-22.

 Abhijeet from Tips2trade said, “Good Q4FY23 results with debt reduction augurs well for Adani Power stock price. However, currently the stock is overbought on the Daily charts with Rs 245 as a strong resistance. A daily close above this level could lead to targets of Rs 273-280 in the near term. Support will be at Rs 225."

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