Adani Power Share: Shares of Adani Power are rising like a rocket. On Tuesday, the company’s shares closed at Rs 173.65 with a gain of 14.06 per cent. The shares of the company saw a rise for the fifth consecutive trading day. In the last five trading days, the shares of Adani Power have registered an increase of more than 34 percent. At the same time, this year the company’s shares have jumped up to 72% and it has gone beyond Rs 101 to Rs 172. Let us tell you that there are many reasons for the rise in the shares of the company, due to which market analysts are also advising to buy it.
Target price Rs 460-470
IIFL Securities has given ‘BUY’ rating to the stock and has a mid-term target price of Rs 460-470. That is, according to the current price, a return of up to 170.66% can be given on investment. According to Anuj Gupta of IIFL Securities, the company has recently acquired Essar Power MP. Adani Power is also experimenting with the use of liquidity ammonia at APMUL’s electricity plant in Mundra. Apart from this, fuel rates are increasing, this will have a positive effect on hydra power.
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Adani Power’s power is about to increase
There is another reason for the rise in the shares of the company. In fact, only last week, Adani Power informed the market that its board of directors has approved an amalgamation plan for the merger of six wholly owned subsidiary companies with Adani Power. According to the filing, the subsidiaries to be merged with Adani Power are Adani Power Maharashtra Limited, Adani Power Rajasthan Limited, Adani Power (Mundra) Limited, Udupi Power Corporation Limited, Raipur Energy Limited and Raigad Energy Generation Limited. Let us tell you that these companies are wholly owned subsidiaries of Adani Power. The entire assets and liabilities of these six companies will be transferred to Adani Power.
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Know how big is the business of Adani Power
Adani Power is part of the Adani Group, India’s largest private thermal power company. It is a leader in setting up coal based supercritical thermal power plants in India. The company has several short-term and long-term power purchase agreements (PPAs) for selling power. This accounts for 6% of the total power generation capacity in India. It is also in the renewable energy sector and has a solar plant in Gujarat. Adani Power has a total installed capacity of 12,410 MW across six power plants in India. It also has a solar power plant in Gujarat with a capacity of 40MW. The company is adding 7,000 MW of capacity to all its plants, including a 1,600 MW project in Jharkhand to supply electricity to Bangladesh. According to the Equitymaster Research report, Adani Power’s revenue growth was 8.9% in the year 2017-18, 25.0% in 2018-19, 5.6% in 2019-20 and 1.1% in 2020-2021.