This stock turned Rs 1 lakh into Rs 7 lakh in one year\, did you miss the rally?

This stock turned Rs 1 lakh into Rs 7 lakh in one year, did you miss the rally?

An investment of Rs 1 lakh in the large cap stock on June 10 in 2019 would have grown to Rs 7.66  lakh on June 10, 2020

Aseem Thapliyal        Last Updated: June 11, 2020  | 16:10 IST
On June 10, 2019, Adani Green Energy share price closed at Rs 42.85 compared to Wednesday's close of Rs 328.35 on BSE

Adani Green Energy share has delivered strong returns to investors in last one year.  An investment of Rs 1 lakh in Adani Green Energy stock on  June 10 in 2019 would have grown to Rs 7.66  lakh on June 10, 2020. On June 10, 2019, Adani Green Energy share price closed at Rs 42.85 compared to Wednesday's close of Rs 328.35 on BSE. 

Of late, the share has been hitting fresh highs after the Gautam Adani-led firm bagged won a  solar manufacturing contract from Solar Energy Corporation of India (SECI). Adani Green Energy share hit all-time high of Rs 344.75 touching 5% upper circuit for the third consecutive session today after the clean energy firm won the world's largest solar award worth Rs 45,000 crore.

The stock opened with a gain of 4.99% at Rs 344.75 against previous close of Rs 328.35 on BSE. Adani Green Energy share has gained 22.46% in last 6 days. The large cap share has gained 100% since the beginning of this year.  The rise in the stock comes as the renewable energy firm said it saw no significant impact of COVID-19 on its business.

"Due to outbreak of COVID-19 globally and in India, the group's management has made initial assessment of impact on business and financial risks on account of COVID-19. Considering that the group is in the business of renewable energy which is considered to be an essential service, the management believes that the impact of this outbreak on the business and financial position of the group will not be significant.  The management does not see any risks in the group's ability to continue as a going concern and meeting its liabilities as and when they are due," the renewable energy firm said.

Impact of the pandemic also seemed to be minimal on the firm's earnings for the quarter ended March 2020. Adani Green Energy reported a consolidated net profit of Rs 55.64 crore in Q4 against consolidated net loss of Rs 94.08 crore in the corresponding quarter a year ago.

Adani Green Energy share hits all-time high after firm wins world's largest solar contract

In FY20 too, the company reported narrowing of consolidated net loss at Rs 67.96 crore against net loss of Rs 475.05 crore in previous fiscal. Total income rose to Rs 2,629.07 crore in 2019-20 compared to Rs 2,130.99 crore in 2018-19.

The firm's comfortable liquidity position also helped the stock achieve fresh highs this year.

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"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.

Adani  Green  Energy ,  part  of  the  diversified  Adani  Group,  is  one  of  the  largest renewable  companies  in  India,  with  a  current  project  portfolio  of  6  GW  including  under construction capacity.

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