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This large cap stock rallied 900% in 8 months; did you miss the rally?

Chitranjan Kumar     December 8, 2020

Billionaire Gautam Adani-led Adani Green Energy shares have rallied nearly 900 per cent over the last eight months, despite reporting subdued performance in the September quarter. The Adani Group stock has been one of the best performers this year and is among the country's top 100 stocks.

Share price of Adani Green Energy have gained 895 per cent against its 52-week low of Rs 112.70 touched on March 17, 2020 to Rs 1,122.05 now. It has zoomed 565 per cent in calendar year 2020 against a gain of just 10 per cent for the National Stock Exchange's Nifty 100 Index. The stock hit a 52-week high of Rs 1,220 on November 24, 2020.   

The market cap of the clean energy firm has surged to Rs 1.72 lakh crore as on December 8, registering a 40-fold jump compared to its value at the end of June 2018, when the company made its stock-market debut as Adani Enterprises' demerged renewable power business.

Also Read: Adani Green Energy share hits all-time high, nears Rs 1,000 mark

Based on recent performance, Adani Green has secured entry into the MSCI India Index, which measures the performance of the large and mid-cap stocks of the Indian market. With 86 stocks, the index covers nearly 85 per cent of the Indian equity universe.

On Tuesday, shares of Adani Green ended 0.97 per cent higher at Rs 1,097.80 against previous closing price of Rs 1,108.55 on the BSE. During the day's trade, the stock hit an intraday high and low of Rs 1,122.05 and Rs 1,088, respectively.  

Also Read: This Adani Group share gained 1,230% in last one year; market cap near Rs 1 lakh crore

Adani Green Energy, a part of the diversified Adani Group, reported a 82 per cent fall in consolidated net profit at Rs 17.57 crore during the second quarter ended September 30, 2020, as against Rs 102.29 crore in the quarter ended on September 30, 2019. The net sales declined by 11.1 per cent to Rs 599.95 crore in Q2 September 2020 over the year ago period.

Despite disappointing Q2 earnings, a host of other factors has led to positive sentiment around the stock. As per the latest ranking of global solar companies by Mercom Capital, Adani Group was ranked as the number 1 global solar power generation asset owner in terms of operating, under construction, and awarded solar projects. Besides, it is the only Indian developer among the top 10 globally and currently tops global solar developer with 2.3 GW of operational projects, 2 GW under construction, and 8 GW of awarded projects (with contracted PPAs) for a total capacity of 12.3 GW.

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