Adani Power Share Price target is Rs 891 in the month of September, know how to confirm
Adani Power Ltd. (NSE: ADANIPOWER) experienced a notable surge in its share price, rising by approximately 5% to ₹671.05. This increase comes on the heels of the company’s impressive financial performance for the first quarter of FY25, which has sparked optimism among investors regarding its future growth potential.
Main Points
Adani Power opened at ₹652 and reached a high of ₹671.05 during trading today. The stock’s previous close was ₹651.1, indicating a significant uptick in investor interest. The trading volume for the day was robust, with over 3 million shares exchanged, reflecting strong demand for the stock.
The company’s share price has been volatile recently, with a 52-week range between ₹289 and ₹896. Despite some fluctuations, the stock has shown resilience, gaining about 21% since the beginning of the year.
The recent quarterly results revealed that Adani Power’s consolidated revenue surged by 30% to ₹15,052 crore compared to ₹11,612 crore in Q1FY24. This growth was primarily driven by a 38% increase in power sale volumes, which reached 24.1 billion units (BU). The company’s EBITDA also saw a remarkable rise of 53%, reaching ₹6,290 crore.
Profit Before Tax (PBT) nearly doubled, increasing by 95% to ₹4,483 crore from ₹2,303 crore in the same quarter last year. These figures indicate not only strong operational performance but also effective cost management strategies that have resulted in lower fuel costs.
Adani Power’s CEO, S B Khyalia, highlighted that the company is focusing on sustainable growth through advanced development activities. The firm is preparing for a resurgence in the thermal power sector by securing execution pipelines for three Ultra-supercritical projects of 1,600 MW each.
Additionally, Adani Power recently announced a significant power supply agreement with Maharashtra State DISCOM (MSEDCL) for a total capacity of 6,600 MW. This includes supplying 5,000 MW of solar power through its subsidiary Adani Green Energy and providing 1,496 MW of thermal power from new installations. This deal is expected to enhance Adani Power’s market position and align with India’s growing energy demands.
Analysts are generally optimistic about Adani Power’s future performance. The stock’s P/E ratio stands at approximately 15.32, which is competitive within the industry. Furthermore, the company’s return on equity (ROE) is an impressive 48.28%, underscoring its effective management and profitability.
Despite some concerns regarding its debt-to-equity ratio of around 0.80 and fluctuations in institutional holdings, many analysts believe that Adani Power is well-positioned for continued growth. The recent positive developments and strategic initiatives are expected to bolster investor confidence further.
Looking ahead to tomorrow’s trading session, market analysts anticipate that Adani Power’s share price may continue to experience upward momentum due to today’s positive sentiment and strong fundamentals. If the stock can maintain its position above key technical levels such as the 50-day moving average (DMA), it could attract more buyers.
Investors will be closely watching for any further updates from the company regarding its projects and financial performance. Given the current market conditions and investor interest in renewable energy sectors, there remains potential for further gains.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
