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, agribusiness, logistics, 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, Chief Executive Officer 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.
These 12 stocks are flashing BUY signal on tech charts
Money-making ideas
9 Jun, 2020
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.Here are 12 stocks that can offer solid returns in 3-4 weeks:
ACC | BUY | Target Price: Rs 1,390
9 Jun, 2020
This counter appears to be on the verge of a breakout as it is consolidating for the last couple of trading sessions on the 100-day EMA. Moreover, last Thursday, it has witnessed a failed breakdown kind of a situation as it swiftly recovered after breaching its 6-day old congestion zone on the downside. There can be minor hiccups around Rs 1,310 level but once it manages a close above that, it shall swiftly run towards its 200 day moving average whose value is present around Rs 1,387. Therefore, positional traders can look into buying this stock for a target of Rs 1,390 with a stop below Rs 1,270 on closing basis.[Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in]
Tata Motors | BUY | Target Price: Rs 119
9 Jun, 2020
This counter appears to be on a strong uptrend with a fresh breakout on relatively much higher volumes. As this counter is comfortably sitting above its 50 day moving average, it might have embarked on a medium term uptrend. Sustaining above Rs 97 levels, it can extend its run into the 200 day moving average whose value is placed around Rs 132. However, from near-term trading perspective, positional traders are advised to adopt a two pronged strategy of buying now and adding further on declines into the zone of RS 103 – 101 and look for an initial target of Rs 119. Stop suggested for the trade is close below Rs 97.[Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in]
CESC | BUY | Target Price: 660
9 Jun, 2020
This counter appears to be consolidating, with a positive bias, for the last four trading sessions in a narrow range of Rs 630-600 levels. Once it manages to push itself above this range, then it shall head towards recent swing high of Rs 668. Positional traders in anticipation of such a breakout should remain long and look for a target of Rs 660. Stop suggested for the trade is a close below Rs 600 levels.[Analyst: Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in]
IOC | BUY | Target Price: Rs 94
9 Jun, 2020
Oil and gas sector has been performing well. The stock has surpassed the previous top resistance placed at Rs 89.50. Short-term moving averages have reached above medium term moving averages. The stock formed bullish Hammer candlestick pattern on the month ended May 2020. Traders can look into buying this stock for a target price of Rs 94 with a stop loss at Rs 87.[Analyst: Vinay Rajani, Technical Research Analyst, HDFC securities]
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.