Adani Power was one of the top gainers among BSE 500 stocks. Its price has risen by 80.54% in the past month and by 35.93% in the last 5 days. Today, its shares surged 6.05% and are currently trading at ₹ 215.75 apiece. The stock reached its 52-week high of ₹220.80 today.
The company recently concluded the acquisition of Essar Power MP and is experimenting with the usage of liquid ammonia in APMuL’s power plant at Mundra. It is gearing up to put up a 5.2 MW wind Turbine at Mundra, Gujarat and when it comes up, it will b India’s biggest wind turbine and one of the largest on-shore turbines in the world.
India witnessed the worst electricity shortage from March 1 to March 30 since October. At the same time, its power consumption grew steadily to 126.12 billion units (BU) in March, increasing by 4.6 per cent year-on-year. This reflects the impact of the early onset of summers.
Shares of power generation companies and related companies surged on the expectation that improved demand will spur earnings growth in the sector. The BSE Power Index grew by 8.64% in the past month and was up 2.04% on Monday.
“Adani Power stock price can be attributed to two major reasons — its investments in green energy sparking value buying and partial payments received by the Rajasthan and Maharashtra governments that were long due. Apart from this, the cancellation of the Adani Power de-listing has also worked in favour of the Adani Power share price rally,” said Gurpreet Singh, Managing Director at Atallia Traders Private Limited on March 30, 2022.
The shares of Adani Power have given stellar returns to its shareholders in a short period of time. If ₹ 1,00,000 was invested a month ago, it would be worth ₹1,80,540 today. If the same amount was invested only 5 days ago,₹1,00,000 would have been worth ₹1,35,930.
Anuj Gupta, Vice President at IIFL Securities has suggested a momentum buy at CMP, with a target of ₹235 and stop-loss at ₹189, today.
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