Shares of Adani Power Ltd continued to rise for the third consecutive session in Monday’s trading session. Shares rose 6.84% to an intraday high of Rs 325.5 from the previous close of Rs 304.65. About 37.73 thousand shares changed hands today on the BSE, well below the two-week average volume of 3.77 thousand shares. Over-the-counter sales came in at Rs 120.64 crore, commanding a market capitalization (m-cap) of Rs 1,24,617.70.
Bharat Heavy Electricals Ltd (BHEL) today said it has received an order from Mahan Energen Ltd (formerly known as Essar Power MP Ltd). Mahan Energen is a wholly owned subsidiary of Adani Power.
Recently, the power arm of the Adani Group clarified that it is not engaged in any discussions with Abu Dhabi National Energy Company PJSC (TAQA) regarding their investment.
The stock saw a sharp drop following the attack by US-based short seller Hindenburg Research in early February of this year, and has enjoyed a strong recovery since. It has recovered 89.02 percent over the past six months. That said, it has grown by 8.50% in 2023 so far.
The company announced a series of positive results for the first quarter ended June 30, 2023 (Q1 fiscal year 24). The company’s net profit increased by 83.30% to Rs 8,759 crore in Q1 FY2024 compared to Rs 4,780 crore in the same period last year.
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Adani Power said its total consolidated revenue grew 16.8% to Rs 18,109 billion in Q1 FY2024 from Rs 15,509 billion in the same period a year earlier, mainly due to improved volumes, it recorded. higher one-time revenue due to regulatory complaints and late payment of surcharges.
On the technical setup, analysts were divided on the counter. One of them said the stock could be supported at Rs 305.
Market expert Ravi Singh said: “Adani Power is looking strong on the long and short term moving averages. Other momentum indicators like RSI (Relative Strength Index) and MACD (Average Average) convergence/divergence) also support this trend, the stock could hit Rs 350 in the coming weeks.
AR Ramachandran from Tips2trades said: “Adani Power looks a bit bullish but is also overbought on the daily chart with next resistance at Rs 335. A daily close below the Rs 305 support could lead to to the target of Rs 283 in the near term.”
The stock was last seen trading above the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs). The counter’s 14-day RSI is at 76.98. Levels below 30 are identified as oversold while values above 70 are considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 9.70 to its book value (P/B) of 4.41.
The scenario has a one-year beta of 1.04, indicating average volatility.
Meanwhile, India’s equity benchmark was up today, led by gains in technology shares, financial metals, pharmaceuticals and consumer goods.
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