Adani Transmission shares rise on Q1 business update; key details

Shares of Adani Transmission Ltd rose nearly 2% today after the Adani Group firm announced its Q1 business update. The firm said it secured three smart metering projects during the quarter. Adani Transmission shares gained 1.88% to Rs 798 against the previous close of Rs 783.25 on BSE. The stock opened higher at Rs 795.10 in the third trading session of this week.  

Adani Transmission shares have lost 74 percent in a year and fallen 69 percent since the beginning of this year. Total 0.77 lakh shares changed hands amounting to a turnover of Rs 6.18 crore on BSE. Market cap of the firm stood at Rs 88,162 crore.    

The large-cap stock hit a 52-week high of Rs 4238.55 on September 16, 2022 and a 52-week low of Rs 630 on March 1, 2023. The stock is down 81% from its 52-week high.   

In terms of technicals, the relative strength index (RSI) of Adani Transmission stands at 49.5, signaling neither the stock is overbought nor oversold. The stock has been highly volatile with its beta at 1.5 in the last one year. Adani Transmission shares are trading higher than the 5 day, 10 day, 20 day but lower than the 50 day, 100 day and 200 day moving averages.   

The company received letter of award for three smart metering projects in Andhra Pradesh totalling 2.7 million smart meters with a contract value of Rs 3,700 crore in the June quarter, it announced in the Q1 business update. The near-term transmission and smart metering pipeline remains very robust, and is fully geared up to participate in the upcoming tenders, it added.  

Referring to the transmission and smart meter business, the Adani Group firm said it maintained system availability over 99.8% in Q1 and added 550 kms to the operational network during the quarter.  Now, the total network stands at 19,778 km.  

The transmission stock is trading 81% lower to its record high after the Hindenburg report, which was released on January 24 this year, led to weak sentiment around the Adani Group stocks. In response, the Group called Hindenburg 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.   

Also read: Hot stocks on July 19, 2023: Reliance Industries, Welspun Corp, Himadri Speciality Chemical, Brightcom Group, others

Also read: Blue Dart Express, IndusInd Bank, RVNL, Polycab India, Tata Communications, others among stocks to watch on July 19