Adani Power shares likely to approach Rs 700 mark, here's why

Adani Power shares are likely to rise to Rs 690 mark, an upside of 18% from the previous close. Adani Power shares, which gave multibagger returns in the long term, closed 2.06% higher at Rs 596.70 on Monday.  Adani Power stock is seen rising on multiple triggers ahead. 

Jefferies says the Adani Group firm is poised for strong capacity addition on a comfortable balance sheet. Recent payments from Bangladesh on account of sale of electricity have also eased investor concerns.

The global brokerage also sees risk profile reducing gradually for the Adani Power as incremental capacity is being locked in with profitable PPAs. 

The multibagger stock has gained 1559% in five year. The stellar rise in the Adani Power stock has been accompanied by high volatility in a year, signals its one year beta of 1.19. Adani Power shares clocked multibagger returns of 114% and 116% in two years and three years, respectively.

In the previous session, the Adani Group stock's market cap climbed to high of Rs 2.30 lakh crore. A total of 3.49 lakh shares of the firm changed hands amounting to a turnover of Rs 20.58 crore on BSE.

In terms of technicals, the Adani Group stock is trading neither in the overbought zone nor in the oversold zone, signals the relative strength index (RSI) of Adani Power which stands at 64.2.

The Adani Group 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.

Jefferies cited Adani Power's ambitious target to double its EBITDA by financial year 2030 behind its bullish stance. The company aims to raise its generation capacity from 23 GW in FY23-25 to 30 GW by FY30E, with 11.2 GW of new capacity already ordered at competitive rates.