Shares of Adani Power were stuck in the upper circuit of 5 per cent today amid a strong recovery rally in the broader markets. Adani Power stock gained 4.99 percent or Rs 19.60 to Rs 412.35 against the previous close of Rs 392.75 on BSE. A total of 4.92 lakh shares of Adani Power changed hands, amounting to a turnover of Rs 19.95 crore on the BSE. Market cap of the company rose to Rs 1.59 lakh crore on BSE.
The stock has gained 10.24 per cent in the last two sessions. Adani Power stock stands higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The stock has zoomed 339.37 per cent in a year and risen 313 per cent in 2022. The share hit a 52-week low of Rs 88.55 on September 8, 2021 and a 52 week high of Rs 432.80 on August 22, 2022.
In Q1 of the current fiscal, 15,02,705 public shareholders held a 25.03 per cent stake or 96.53 crore shares in the firm. Eight promoters held 74.97 per cent stake or 289.16 crore shares in the last quarter.
14,93,188 public shareholders held 23.08 crore shares of the firm, amounting to a stake of 5.99 per cent with an individual share capital of up to Rs 2 lakh.
616 public shareholders held 3.89 crore shares of Adani Power, amounting to a stake of 1.01 per cent with an individual share capital of over Rs 2 lakh.
334 FPIs owned 12.53 per cent or 48.33 crore shares amounting to a 12.53 per cent stake in the June quarter of the current fiscal.
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On the outlook of Adani Power, Pavitraa Shetty, Co-founder & Trainer, Tips2Trades said, “Even though fundamentally, Adani Power has shown great improvement, ever increasing debt burden poses several risks for the future making the stock look extremely overvalued and overbought in every way. Investors are advised to keep booking profits at current levels and look to initiate fresh buy only near Rs 319- Rs 325 levels.”
Adani Power stock hit all-time high of Rs 432.80 on August 22 after the Adani Group firm said it would buy DB Power Limited for an enterprise value of Rs 7,017 crore.
The deal with DB Power will enable the Adani Group firm to expand its offerings and operations in the thermal power sector in Chhattisgarh. DB Power owns and operates two units of 600 MW thermal power plant in Chhattisgarh’s Janjgir Champa District. Diligent Power (DPPL) is the holding company of DB Power.
This acquisition’s initial term of the MoU would be till October 31, 2022, but can be extended further on mutual agreement, said the firm in a filing to the exchanges.
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In Q1 of the current fiscal, Adani Power reported an over 17 times rise in its consolidated net profit at Rs 4,780 crore against Rs 278 crore profit in the corresponding quarter last year.
Total revenue in Q1 more than doubled to Rs 13,723 crore compared with Rs 6,568.86 crore in the corresponding previous quarter. Consolidated EBITDA or operating profit zoomed 227 per cent to Rs 7,506 crore in Q1 against Rs 2,292 crore in the year-ago period. It includes prior period revenue recognition of Rs 4,212 crore against Rs 657 crore during the respective periods.