Shares of Adani Power Ltd rose about 2 per cent during the trading session on Thursday to hit new record highs. However, the stock gave up gains to trade lower in tandem with headline indices, which were trading flat after the initial uptick for the day.
Shares of Adani Power rose 1.84 per cent to Rs 651.60 during the session, its new all-time high, commanding a total market capitalization of more than 2.51 lakh crore. The Adani Group's utility arm had settled at Rs 639.80 in the previous trading session on Wednesday.
Shares of Adani Power have delivered multibagger returns to the investors as the stock had more than tripled from its 52-week low at Rs 214. The stock has surged over 65 per cent in the last six months, while it has soared more than 350 per cent from Hindenburg's low. The stock has zoomed about 1,500 per cent in the last five years.
Gautam Adani-led Adani Power reported a 47.8 per cent decline on a year-on year (YoY)basis in consolidated net profit to Rs 2,737 crore for the quarter ended March 2024. The company's total income grew 30 per cent to was Rs 13,881.52 crore for the fourth quarter of FY24.
In Q4FY24, the consolidated power sale volume reached 22.1 billion Units (BU), marking an increase of 55 per cent YoY, said Ventura Securities. "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" it said.
Technical experts, reading the charts, are mostly positive on the stock and see more upside left in the counter in coming day. However, they believe that investors need to be some cautious after a steep run and pick the stock on a positional basis with strict stop loss.
The substantial improvement in PLF is attributed to the strategic advantages leveraged by the company, enabling the realization of the full potential presented by the growth in demand, Ventura added. "It has initiated development of a 2x800 MW (1600 MW) ultra-supercritical thermal power project as Phase-II expansion of its existing 600 MW capacity at Raigarh, Chhattisgarh."
Commenting on Adani Power, Jigar S Patel, Senior Manager - Technical Research at Anand Rathi Shares and Stock Brokers said that support is place at Rs 625 and resistance at Rs 652. "A decisive close above the Rs 652 level may trigger a further upside to 665. The expected trading range will be between Rs 615 and Rs 680 for a month," he said.
Adani Power has given a breakout from a continuation pattern known as a bullish flag and pole formation confirmed with a hidden bullish divergence in the RSI after consolidating for over 4 months, said Aditya Gaggar Director of Progressive Shares. "A reading of 32.97 in ADX indicates the presence of a strong uptrend. As per the pattern, the target is Rs 800," he added.
Adani Power has been in gradual uptrend with recently giving a decent pullback from Rs 580 zone of the significant 50EMA level and currently is on the verge of a breakout above the previous peak of Rs 647 zone., said Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher. "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 current rate," he said.
The price action of Adani Power witnessed a bullish breakout from the rounding bottom pattern, complemented by a breakaway gap in early April. This further validated the bullish breakout and continuation signs of the uptrend. The stock has been trending laterally, indicating further accumulation to fuel the upside rally, said Kushal Gandhi, Technical Analysis at Stoxbox.
"As the primary trend has been slopping positively, the stock has seen improving EPS strength, buyers’ demand, and relative strength compared to the 50 index. We anticipate a low risk and a higher rewarding opportunity and recommend buying Adani Power for the target Rs 752 and protective stop at Rs 602," he said.
Adani Power has touched its important resistance zone of Rs 642-647 on its daily time frame charts, said Riyank Arora Technical Analyst at Mehta Equities. "Considering the current market situation and trend analysis, any pullback towards Rs 607-610 should offer a good buying opportunity for the stock. Major support is placed at the Rs 570. On the upside, we predict potential targets of Rs 700 and Rs 750," he said.
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