Tata Power vs Adani Power: Which stock can deliver better returns in short term?

Shares of Tata Power and Adani Power extended their fall for the second straight session in Friday's trade. Tata Power fell 1.29 per cent to hit a day low of Rs 202.90 over its previous close of Rs 205.55; while Adani Power dived 4.97 per cent to hit a lower price band of Rs 164.30 against yesterday's closing of Rs 172.90.

Considering today's low-price levels, Tata Power traded 6.79 per cent higher from its 52-week low of Rs 190, hit on June 20, 2022; while Adani Power traded 54.85 per cent higher from its one-year low of Rs 106.10, touched on February 10 last year.

Watch: India's Costliest Apartment: Welspun Chief BK Goenka buys penthouse in Worli tower for Rs 240 crore

That said, Tata Power's stock jumped 31.91 per cent from its one-year high of Rs 298, hit on April 7, 2022, whereas Adani Power's counter plunged 62.04 per cent from its 52-week high of Rs 432.80.

Quarterly performance

Tata Power reported a 91 per cent year-on-year (YoY) rise in its consolidated profit after tax to Rs 1,052 crore for the quarter that ended December 31, 2022 (Q3 FY23), against Rs 551.89 crore in the same quarter of the previous fiscal year.

On the flip side, Adani Power reported a 96 per cent decline in consolidated net profit at Rs 8.77 crore for Q3 FY23 compared to Rs 218.49 crore in the same period a year ago.

Also WATCH: Pathaan Earnings Cross Rs 458 Crore In India: A Look At Highest-Earning Indian Films

Technical view

Tata Power

Jigar S Patel, Senior Manager - Technical Research Analyst, at Anand Rathi Shares and Stock Brokers, said, "For the last five months or so Tata Power has been making lower highs and lower lows which resulted in a 23 per cent cut in price. Since last two months, the said counter has made a nice base near Rs 205. Still, there is no clear breakout or breakdown sign on the counter. One needs to wait and watch as of now."

Rajesh Bhosale, Technical Analyst at Angel One, "Any sustainable move beyond Rs 215-217 can trigger a much-awaited momentum which can push prices toward the Rs 228-230-odd zone."

AR Ramachandran from Tips2trades said, "Tata Power is bearish with strong resistance at 215. A daily close above this level could lead to targets of 225-238 in the coming weeks. Support will be at 195."

Adani Power

Ajit Mishra, VP - Technical Research at Religare Broking said, "Traders should refrain from taking any positions in Adani Power. On the downside, Rs 140-155 zone could offer some support."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, suggested that the stock movement is now event-based and investors can take decisions at their own risk.

Tips2trades' Ramachandran said, "Adani Power is a riskier bet given all the news surrounding the Adani group stocks but a daily close above Rs 186 could lead to targets of Rs 199-222 in the coming weeks."

It must be noted that Adani Group stocks took a major hit recently after US-based short seller Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.

Meanwhile, Indian equity benchmarks fell in late deals today, dragged by metals, consumer goods, energy and technology stocks.

Also read: M&M Q3 profit rises 14% to Rs 1,528 crore; margin at 13%

Also read: Titan, Tata Motors, Canara Bank, Escorts & KVB: Brokerages' view on these 5 Jhunjhunwala stocks