Adani Group Stock Analysis: Is Now the Perfect Time to Invest?

Adani Group Stock Analysis: Is Now the Perfect Time to Invest?

The stock of Adani Power Ltd has been on a remarkable journey, surging by a staggering 155% from its 52-week low in February earlier this year. On February 28, 2023, Adani Power shares hit a 52-week low, trading at just Rs 132.55. However, in the current trading session, the stock has rebounded significantly, reaching Rs 338.10 during the afternoon trade on BSE, marking an impressive 155.07% return within this period. The Adani Group stock has recovered and outperformed, with multi-bagger returns of 201% and 838% over two and three years, respectively. On September 12 this year, Adani Power stock reached a 52-week high of Rs 410. Since then, it has retraced slightly, down 17% from the yearly high.

The market capitalization of Adani Power Ltd has soared to Rs 1.30 lakh crore, with 7.35 lakh shares changing hands and a turnover of Rs 24.88 crore on BSE. It’s essential to note that the Adani Group stock carries a beta of 1.5, indicating higher volatility over the year.

Considering the remarkable 155% surge in Adani Power stock from its 52-week low, let’s explore what industry analysts have to say about the stock’s outlook and whether it’s the right time to consider an investment.

Analyst Insights on Adani Power’s Prospects:

• Abhijeet from Tips2trades: Abhijeet highlighted that “Technically, Rs 390 is a strong resistance on the Daily charts. Investors should consider buying only if there is a dip close to the support of Rs 309.”
• Vaishali Parekh, AVP, Prabhudas Lilladher: Vaishali pointed out that “Adani Power has rallied decently but faced resistance near the Rs 409 level and has subsequently pulled back slightly with near-term support at Rs 360 levels. The overall trend remains strong, and we expect further gains after a short consolidation.”
• Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets: Mileen has taken a different stance, suggesting a sell call with a target price of Rs 300-280. She recommended setting a stop loss at Rs 360. Mileen added, “On the daily chart of Adani Power, we are observing a lower top lower bottom formation, which is a sign of weakness. At present, immediate support is at Rs 338 level, if breached, selling pressure will intensify.”

Financial Performance:

Adani Power reported an impressive 83.25% increase in consolidated net profit for the quarter ending in June 2023, with earnings totalling Rs 8,759.42 crore compared to Rs 4,779.86 crore in the June quarter of the previous fiscal year. This boost was primarily driven by substantial other income. However, revenue from operations dipped to Rs 11,005.54 crore, marking a 19.80% decrease from Rs 13,723.06 crore during the corresponding quarter of the previous fiscal year.

It’s worth noting that this surge in other income is primarily due to a one-time recognition of prior period regulatory revenue, amounting to Rs 6,497 crore, attributed principally to late payment surcharge.

Disclaimer:

This article is for informational purposes and should not be considered investment advice. The recommendations, suggestions, views, and opinions expressed by experts are their own and do not represent the views of Business Today. Before making any investment decisions in the mentioned stock or stocks, consulting with your financial advisor or a qualified stock market expert is strongly recommended. Business Today will not be held responsible for any losses from trading or investing in these stocks.