With 1,000% rally in 2 years, this stock steals the thunder, but analysts are cautious
On Tuesday, the stock hit a 52-week high of Rs 312.75, up 5% from previous close.
By Pawan Nahar, ETMarkets.com | Updated:
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New Delhi: The stock of a clean energy firm has stolen the thunder on Dalal Street amid the recent Covid-triggered bloodbath.
And on Monday Adani Green Energy (AGEL), a renewable energy entity of the Adani Group, made news by bagging the world's largest solar bid, which entails building a photovoltaic (PV) power plant of 8,000 MW and setting up a domestic solar panel manufacturing capacity of 2,000 MW, envisaging a total investment of roughly $6 billion.
The Ahmedabad-headquartered company was demerged from Adani Enterprises and listed separately in June 2018.
Since its listing, the scrip has surged around 1,015 per cent from Rs 29.40 to hit an all-time high of Rs 328.35, indicating a gain of around 750 per cent. The stock has been hitting upper circuit limits since past two sessions on new deal win.
The Ahmedabad-headquartered Adani Group, which was founded by Gautam Adani in 1988 as a commodity trading business, has diverse interest across sectors including energy, resources, logistics, agribusiness, real estate, financial services, airports, defence and aerospace.
The other group stocks too have been doing well on Dalal Street. Six of the stocks have spurted up to 93 per cent in the latest rally from the March market lows, sending the group's market-cap soaring 44 per cent to Rs 1.78 lakh crore from Rs 1.23 lakh crore.
Adani Green has risen 93.41 per cent since March end, followed by Adani Gas (51.77 per cent), Adani Ports (46 per cent) and Adani Power (44 per cent). However, two other group stocks -- Adani Enterprises (up 15 per cent) and Adani Transmission (up 0.99 per cent) – have not done that well.
Adani Green Energy plans to complete 1,300 MW of hybrid projects by Calendar 2021, CEO Jayant Parimal said in a recent analyst call.
He said the company plans to spend up to Rs 10,000 crore this financial year to build 1,100 -1,500 MW of wind and solar power plants and has managed to maintain operations amid the coronavirus disruptions.
The market capitalisation of Adani Green Energy stood at Rs, 44,450 crore on June 4, 2020. The company posted Rs 55.64 crore profit for March quarter 2020 against a net loss of Rs 94.08 crore during the same quarter a year ago.
The firm’s total income this March quarter stood at Rs 718.66 crore against Rs 718.73 crore a year earlier. Income for financial year 2019-20 stood at Rs 2,629 crore against Rs 2,131 crore in 2018-19.
"The company has been raising invoices to all counter-parties regularly and has been receiving the regular payments from all the discoms and counterparties. Adani Green doesn't expect any issue in debt servicing and other financing arrangements," the company said in an exchange filing.
The has signed power purchase agreements (PPAs) with government counter-parties to sell its entire power for 25 years at fixed tariff.
Adani Green won the 700-MW wind-solar hybrid projects in January 2020 and bagged the 600-MW project in June 2019. Currently, the company is building 1,280 MW of wind, 475 MW solar and 1,690 MW hybrid plants.
“The stock has seen a smart runup in recent sessions, as the company denied any material impact from Covid-19 on its profitability,” said Ajit Mishra, VP Research, Religare Broking.
The domestic markets are rallying but the consensus remains the future is bleak and a sharp correction is likely in the future. "We reiterate approaching the market with a great deal of caution and chasing the trend only with strict trailing of stop losses as the market remains highly prone to a profit-taking at higher levels," said Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services.
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Adani Green Energy was, incidentally, one of the seven leading domestic infrastructure issuers, that saw downgrades by Moody’s by one notch in its recent update.
Mishra said the company has been receiving timely payments from discoms and other counterparties. There would be no issue in terms of servicing the debt, which has led to positive momentum in the stock.
Mot many analysts, including Religare, track the stock.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments has advised investors to accumulate the stock on dips. “The stock may achieve the price target of Rs 350, but one should buy it on dips. A strict stop loss should be maintained at Rs 270,” he said.
Anurag Bhatia of Minance, however, wants to avoid the stock for now. “It appears to be quite expensive. Rising competition is a new challenge for the company,” he said.
And on Monday Adani Green Energy (AGEL), a renewable energy entity of the Adani Group, made news by bagging the world's largest solar bid, which entails building a photovoltaic (PV) power plant of 8,000 MW and setting up a domestic solar panel manufacturing capacity of 2,000 MW, envisaging a total investment of roughly $6 billion.
The Ahmedabad-headquartered company was demerged from Adani Enterprises and listed separately in June 2018.
Since its listing, the scrip has surged around 1,015 per cent from Rs 29.40 to hit an all-time high of Rs 328.35, indicating a gain of around 750 per cent. The stock has been hitting upper circuit limits since past two sessions on new deal win.
The Ahmedabad-headquartered Adani Group, which was founded by Gautam Adani in 1988 as a commodity trading business, has diverse interest across sectors including energy, resources, logistics, agribusiness, real estate, financial services, airports, defence and aerospace.
The other group stocks too have been doing well on Dalal Street. Six of the stocks have spurted up to 93 per cent in the latest rally from the March market lows, sending the group's market-cap soaring 44 per cent to Rs 1.78 lakh crore from Rs 1.23 lakh crore.
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Adani Green has risen 93.41 per cent since March end, followed by Adani Gas (51.77 per cent), Adani Ports (46 per cent) and Adani Power (44 per cent). However, two other group stocks -- Adani Enterprises (up 15 per cent) and Adani Transmission (up 0.99 per cent) – have not done that well.
Adani Green Energy plans to complete 1,300 MW of hybrid projects by Calendar 2021, CEO Jayant Parimal said in a recent analyst call.
He said the company plans to spend up to Rs 10,000 crore this financial year to build 1,100 -1,500 MW of wind and solar power plants and has managed to maintain operations amid the coronavirus disruptions.
The market capitalisation of Adani Green Energy stood at Rs, 44,450 crore on June 4, 2020. The company posted Rs 55.64 crore profit for March quarter 2020 against a net loss of Rs 94.08 crore during the same quarter a year ago.
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The firm’s total income this March quarter stood at Rs 718.66 crore against Rs 718.73 crore a year earlier. Income for financial year 2019-20 stood at Rs 2,629 crore against Rs 2,131 crore in 2018-19.
"The company has been raising invoices to all counter-parties regularly and has been receiving the regular payments from all the discoms and counterparties. Adani Green doesn't expect any issue in debt servicing and other financing arrangements," the company said in an exchange filing.
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The has signed power purchase agreements (PPAs) with government counter-parties to sell its entire power for 25 years at fixed tariff.
Adani Green won the 700-MW wind-solar hybrid projects in January 2020 and bagged the 600-MW project in June 2019. Currently, the company is building 1,280 MW of wind, 475 MW solar and 1,690 MW hybrid plants.
“The stock has seen a smart runup in recent sessions, as the company denied any material impact from Covid-19 on its profitability,” said Ajit Mishra, VP Research, Religare Broking.
Here are 12 stocks that can offer solid returns in 3-4 weeks:
Adani Green Energy was, incidentally, one of the seven leading domestic infrastructure issuers, that saw downgrades by Moody’s by one notch in its recent update.
Mishra said the company has been receiving timely payments from discoms and other counterparties. There would be no issue in terms of servicing the debt, which has led to positive momentum in the stock.
Mot many analysts, including Religare, track the stock.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments has advised investors to accumulate the stock on dips. “The stock may achieve the price target of Rs 350, but one should buy it on dips. A strict stop loss should be maintained at Rs 270,” he said.
Anurag Bhatia of Minance, however, wants to avoid the stock for now. “It appears to be quite expensive. Rising competition is a new challenge for the company,” he said.
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