Adani Power Stock Hits All-Time High, Here’s Why

Shares of Adani Power hit a 5% higher home run today as global index provider Morgan Stanley Capital International (MSCI) included the company in its global index. The stock is up 35% in the past seven days after inclusion.

Adani Power shares hit a record high of Rs 327.5, up 4.98% from the previous close of Rs 311.95 on BSE. The stock opened 2.9% higher at Rs 321 today.

A total of 8.41 lakh shares of the company changed hands, representing a turnover of Rs 27.37 crore. The company’s market cap rose to Rs 1.26 lakh crore on BSE.

Shares of Adani Power are trading above the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The large-cap stock has gained 223 percent in one year and is up 228 percent since the start of this year.

READ ALSO : After being acquired by the Adani Group, is the Ambuja-ACC merger the next step?

The stock hit a 52-week low at 69.95 rupees on August 24, 2021.

MSCI has announced the list of additions and deletions for May 2022 Rejig. Global index provider MSCI (Morgan Stanley Capital International) rearranges its constituents semi-annually and quarterly.

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On May 13, MSCI added four Indian stocks – Adani Power, AU Small Finance Bank, Jindal Steel and Power and Tata Elxsi. It excluded HDFC AMC. The changes will be effective from June 1, while index funds are expected to realign their portfolios on May 31.

Adani Group has also performed well financially.

Adani Power reported a multiple increase in consolidated profit after tax (PAT) to Rs 4,645 crore in the fourth quarter of last fiscal year from a net profit of Rs 13 crore in the prior year period.

Total consolidated revenue soared 93% year-on-year (YoY) to Rs 13,308 crore from Rs 6,902 crore in the same quarter of the prior year.

Consolidated EBITDA, or earnings before interest, tax, depreciation and amortization, rose 271% to Rs 7,942 crore from Rs 2,143 crore in the same quarter last year.

Sallie R. Loera