Shares of Adani Power, the largest private thermal power producer in India, have been trending higher for the last four trading sessions. In Tuesday's trade, the stock finished with a gain of 6.94% at ₹347.40 apiece following a 16% rally in the last three trading sessions, resulting in a cumulative gain of 24% in four sessions.
Over the last one month, the shares have zoomed 44% on multiple positive developments, and from their 52-week low of ₹132.4, the shares are up by 162.38%. Notably, the shares are trading at a nine-month high.
In an investor presentation disclosed to stock exchanges on Monday, the company unveiled its ambitious plan to achieve a thermal generation capacity of 21,110 MW by FY29, including brownfield projects and inorganic route.
The company said it is committed to brownfield projects of 1,600 MW and has proposed an additional 3,200 MW, and it also proposed 1,100 MW through an inorganic route.
The company has an installed thermal power capacity of 15,250 MW spread across eight power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, apart from a 40 MW solar power plant in Gujarat, as per the company's regulatory filing.
On August 16, US-based boutique investment firm GQG Partners, along with other investors, acquired 31.2 crore shares, or an 8.1% stake, in Adani Power for over ₹9,000 crore in a block deal, according to media reports.
This strategic acquisition has not only boosted Adani Power's stock but has lifted the other group stocks higher. GQG Partners has been ramping up its investment in the conglomerate ever since Hindenburg Research, in a bombshell report, alleged accounting fraud and stock price manipulation at the group, triggering a stock market rout that had erased about ₹11 lakh crore in its market value at its lowest point.
In June, GQG Partners and other foreign investors bought close to $1 billion of additional stakes in the group's flagship, Adani Enterprises, and in the group's renewable energy firm, Adani Green Energy
In March, GQG Partners bought stakes in four Adani Group companies for $1.87 billion, marking the first major investment in billionaire Gautam Adani's conglomerate since the Hindenburg report, which was released on January 24.
Meanwhile, in mid-July, the company announced the commencement of power supply to Bangladesh from the group’s Ultra Super-Critical Thermal Power Plant in Godda, India.
The Godda USCTPP, which marks the Adani Group’s entry into transnational power projects, is India’s first commissioned transnational power project where 100% of the generated power is supplied to another nation, the company said.
Regarding financials, the company reported an 83.24% YoY surge in its consolidated net profit to ₹8,759 crore in Q1FY24. The company's total income during the quarter surged to ₹18,109 crore from ₹15,509 crore in the year-ago quarter.
The company achieved an average plant load factor (PLF) of 60.1% in Q1FY24, showcasing an improvement from Q1FY23 of 58.6%. The sales volume reached 17.5 billion units (BU) during the quarter with an installed capacity of 15,250 MW, compared to the sales volume of 16.3 BU with an installed capacity of 13,650 MW in April–June 2022.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
