Multibagger Adani Stock Gives 175% Return In 6 Months, In Q1 PAT Increases 17-Fold (YoY)

Adani Power Ltd. is one of the biggest Adani group multibagger stocks which has grown rapidly this year, since March. It is a large-cap stock with a market capitalization of Rs. 139,756 crore. In Q1FY23 Adani Power records a 17-fold YoY gain in its consolidated profit after tax (PAT). Additionally, according to recent reports, the company is ready to make Rs. 57,575 crore in Odisha. Check the details below.

Adani Power Ltd. - NSE performance

The current market price of Adani Power Ltd. stood at Rs. 362.40/share on NSE, up by 5%, till last traded. In the last 5 days, the share price of this company has surged by 10.20% on NSE, and in the last 1 month, its share price has surged by 25.03%. In the past 6 months it has gained 174.55%, and in last 1 year its share price has gained by 353.28%. Its share price incresaed by 1,158.33% in the last 5 years.

The 52-week high level of this stock is Rs. 362.40, and the 52-week low level of this stock is Rs. 70.35.

Market capitalization	Current market price	6 Months performance	1 Month performance
Rs. 139,756 crore	Rs. 362.40	174.55%	25.03%

Adani Power Ltd. Stock: Financial results

Adani Power has recorded a 1,619% YoY gain in consolidated profit after tax (PAT) at Rs. 4,780 crore in Q1FY23, compared with Rs. 278 crore in Q1FY22, which is a 17-fold YoY gain. The company had a healthy topline, other income, and operating performance. Additionally, its consolidated revenue from operations in Q1FY23 was up by 109% YoY to Rs. 13,723 crore. The company in the BSE filing stated, "This increase in revenue was aided by an increase in PPA (power purchase agreement) tariffs due to higher import coal prices and greater alternate coal usage, improved merchant and short-term tariffs, the revival of 1,234 MW bid-2 PPA with Gujarat discoms, and higher prior period revenue recognition."

Adani Power: Consolidated Revenues rise for Q1 2022-23

Consolidated Total Revenue for Q1 FY 2022-23 stood higher by 115% at Rs. 15,509 Crore, as compared to Rs. 7,213 Crore in Q1 FY 2021-22. This increase in revenue was aided by increase in PPA tariffs due to higher import coal prices and greater alternate coal usage, improved merchant and short-term tariffs, revival of 1,234 MW Bid-2 PPA with Gujarat
DISCOMs, and higher prior period revenue recognition.

EBIDTA Rises

The EBITDA for Q1 FY 2022-23 stood higher by 227% at Rs. 7,506 Crore, as compared to Rs. 2,292 Crore in Q1 FY 2021-22. EBITDA growth was aided by prior period income recognition, improved tariff realisation, and change in sales mix, partially offset by impact
of higher fuel cost, increased operating expenses owing to acquisition of Mahan Energen
Ltd., unfavourable foreign exchange movement, etc.

Adani Power Ltd.: Company news

Adani Power is mooting to invest Rs. 57,575 crore in Odisha, as the state government approves the company's proposal to set up 2 projects. Adani Power is set to implement a 4 MMTPA integrated alumina refinery and a 30 MMTPA iron ore project. Commenting on that matter, Gautam Adani, Chairman, Adani Group said, "Odisha is one of our most strategic states where we continue to invest and are always appreciative of the support we have received from Chief Minister Naveen Patnaik." The investment is expected to create 9,300 direct jobs and open up tens of thousands of indirect employment opportunities in Odisha, according to a company statement.

In the last month, at the annual shareholder meetings, Gautam Adani also mentioned that their previously announced US$ 70 bn investment in green energy will continue to boost India from 'being a net importer of oil and gas to an exporter of clean energy'.

Other Adani group stocks also on a roll

Most of the other Adani Group stocks, particularly Adani Green and Adani Wilmar have also been on a roll. The group stocks have turned out to be a favorite of investors and have propelled Adani to become one of the richest men in India. The wealth of Gautam Adani has increased manifold on account of the surge in stock prices of the stocks. 

Markets continue to gain momentum

Second consecutive month of softening in inflation data, along with robust IIP growth, boosted the market sentiments. It has led to the hope that inflation might have peaked out with the sharp cool off in the commodity prices. Hence expectation of a softer stance by RBI in its next MPC meeting. FIIs continuous buying throughout the month of August so far has provided further fillip to the markets. Markets have done well in the last couple of weeks with Nifty crossing major resistance. We expect Nifty to consolidate at higher levels and inch upwards towards the 18,000 mark. Investors would also keep an eye on the minutes from US Fed July meeting, for further clues on its rate hike stance.

Time to be cautious

Global markets were positive after China announced surprised cut in interest rates by 10 bps. Oil prices continued to plunge as investors weigh the impact of slowing growth on energy demand. It may just be time to be a little cautious particularly in stocks of Adani group companies, which have flared up sharply. 

Disclaimer

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