Due to high temperature and increasing demand for electricity, the shares of power companies are running away. The demand-supply gap has widened. Adani Power is getting a big advantage of this.
Adani Group Stock: Adani Power’s stock reached a record high in today’s trading. Today the stock rose 5 per cent to Rs 272 while it closed at Rs 259 on Friday. This year it has increased by 169 percent. Whereas in 1 year it has become 210 percent stronger. With today’s boom, the company’s market cap has crossed 1 lakh crore. This is the 6th company of Adani Group, whose market cap is 1 lakh crore or more. Experts are also seeing a rally in the stock from the current price.
Why is there a boom in Adani Power?
Recently, a decision of the Supreme Court came in favor of Adani Power. The Supreme Court had ordered 3 discoms of Rajasthan to pay the dues of Adani Power. At the same time, the company has invested in green energy, whose sentiments have improved. Another important reason is that there is a tremendous demand for power this year due to the increasing heat. In such a situation, power companies are expected to perform strong ahead.
What should investors do in shares?
Anuj Gupta, VP-Research, IIFL, says that Adani Power is yet to rally. He says that due to high temperature and increasing demand for electricity, the shares of power companies are running away. Since mid-March, the temperature has increased across the country, there has been a sudden increase in the demand for electricity, due to which the demand-supply gap has increased. Adani Power is getting a big advantage of this. Also, it is expected that energy generation companies can give strong results in the fourth quarter of 2021-22, which is buying into the stock. He has given the next 2 targets of Rs 340 and Rs 360 in the stock. Whereas it is advised to put stoploss at Rs 238.
Multibagger for investors
The stock of Adani Power has become a multibagger for the investors. This year, where the market has been under pressure, it has given returns around 170 percent in less than 4 months. The return of the stock in 1 year has been 210 percent. Whereas the stock has run close to 725 percent in the last 5 years. In 5 years, the stock reached a price of Rs 33 to Rs 272.