Adani Power stock hits new highs
On Thursday (May 16, 2024) , Adani Power Ltd. shares reached fresh all-time highs after rising by about 2% during the trading session. But after an early gain, the stock lost some of its gains and traded lower, following the trend of the headline indices, which were also trading flat.
With a market valuation of over 2.51 lakh crore, Adani Power’s shares reached a new all-time high of Rs 651.60 during the session, an increase of 1.84 percent. In Wednesday’s (May 15, 2024) prior trading session, the utility arm of the Adani Group had finished at Rs 639.80.
Adani Power stock has more than tripled from its 52-week low of Rs 214, delivering multi-bagger gains to investors. In the last six months, the stock has increased by over 65%, and it has increased by more than 350% from its low point on Hindenburg. The stock’s value has increased by almost 1,500 percent in the previous five years. This will help the Adani Group deal with Adani crisis rumours better.
Net Profit Plummets 47.8% YoY to Rs 2,737 Crore Despite Revenue Surge
Consolidated net profit for the quarter ending March 2024 at Adani Power, which Gautam Adani runs, fell 47.8 percent year-on-year (YoY) to Rs 2,737 crore. In the last quarter of FY24, the company’s total income reached Rs 13,881.52 crore, a 30% growth.
As per Ventura Securities, the consolidated electricity selling volume reached 22.1 billion Units (BU) in Q4FY24, representing a 55% year-on-year growth. “This growth can be attributed to several factors including enhanced power demand, reduced import coal prices, and the expansion of installed capacity, collectively contributing to the impressive uptick in power sales” according to the report.
Ventura further said that the company’s strategic advantages are to thank for the dramatic uptick in PLF, which allowed them to fully capitalise on the opportunities given by the surge in demand. “It has initiated development of a 2×800 MW (1600 MW) ultra-supercritical thermal power project as Phase-II expansion of its existing 600 MW capacity at Raigarh, Chhattisgarh.”
Adani Power Amid Technical Breakout and Strong Support Levels
Anand Rathi Shares and Stock Brokers’ Senior Manager of Technical Research, Jigar S. Patel, commented on Adani Power, saying that the price is likely to find support at around Rs 625 and resistance at Rs 652. Further gains to 665 might be possible if the market closes decisively above the Rs 652 barrier. He predicted that for the next 30 days, prices would hover around Rs 615–680.
Aditya Gaggar, Director of Progressive Shares, said that after consolidating for more than four months, there is a significant upswing when the ADX value was 32.97, despite dealing with Adani crisis rumours. According to the trend, the objective is Rs 800, he said.
Shiju Koothupalakkal, a technical research analyst at Prabhudas Lilladher, said that Adani Power is presently poised to break out above its previous top of Rs 647 zone after a solid retreat from the Rs 580 zone of the critical 50EMA level. The company has been gradually increasing its share price. “A breakout confirmation shall trigger for fresh upward targets of Rs 675 and Rs 730 levels in the coming days with support maintained at Rs 585 level from the current rate,” according to him.
Improving earnings
Improving earnings per share strength, buyer demand, and relative strength relative to the 50 indexes have all occurred while the main trend has been sloping favourably. He advised purchasing Adani Power with a stop loss of 602 rupees because he saw a low-risk, high-reward opportunity. The stock’s target price is 752 rupees.
According to Riyank Arora, a technical analyst at Mehta Equities, Adani Power has reached a significant resistance zone on its daily time frame charts, which is Rs 642-647. If the stock price drops to about Rs 607–610, investors should seize the chance to purchase it, given the present state of the market and trend analysis. At Rs 570, you’ll find significant support. He said that Rs 700 and Rs 750 may be possible objectives.
Conclusion
Several experts have pointed out solid support levels and positive technical patterns, which contributed to the substantial momentum in Adani Power’s stock after the Adani crisis controversies. Positive divergence between the relative strength index (RSI) and the market and a growing ADX value all point to a strong upward trend. Increased earnings per share strength, buyer demand, and relative strength are the drivers behind analysts’ prospective price forecasts, which range from Rs 675 to Rs 800. Based on the present market circumstances, Adani Power seems to be in a good position to keep climbing towards the Rs 800 level.
