Adani Strengthens with outstanding Q2 results; other Adani equities are also rising

 Adani Strengthens with outstanding Q2 results; other Adani equities are also rising

Adani Power has increased by more than 66 percent over the last six months after hitting a 52-week low of Rs 132.40 in February as a result of the Hindenburg report.

A day after the business revealed a net profit of Rs 6,594 crore for the September quarter, up more than eight times from the same period last year, Adani Power saw a rise of more than 3 percent on November 3rd morning. Revenue increased by 84%.

A one-time gain of Rs 1,371 crore in the form of a tax credit was the reason for the dramatic increase in net profit.

Adani Power said on November 2 that "this increase in revenue was a result of increased revenue volumes, including the influence of the Godda power plant as well as higher merchant sales."

Higher power consumption under import coal-based power purchase agreements (PPAs) of Mundra as well as Udupi plants was facilitated by lower import coal costs. According to the statement, tariffs under these PPAs were set in accordance with authorized regulatory procedures and kept tabs on global coal prices.

With increased operational capacity and better power demand, Adani Power and its subsidiaries were able to reach a power sales volume of 18.1 billion units as well as an average plant load factor (PLF) of 58.3%.

With the addition of the Godda power plant, higher merchant rates, and a decrease in fuel costs, its EBITDA increased by more than 200 percent year over year to Rs 4,336 crore.

Adani Power increased by about 7% after the news was released and closed the day at Rs 372.95 per share.

Adani Power has increased by more than 66 percent over the last half-year, after hitting a 52-week low of Rs 132.40 in February as a result of the Hindenburg report.

The American shortseller's research charged the Adani group with financial irregularities and stock manipulation; the ports-to-power conglomerate refuted these allegations.

As of right now, Adani Power is trading around 6% below its 52-week high of Rs 409, which was reached on September 12, 2023. In the September quarter, promoters' stake in the firm dropped from 74.97 percent in the June quarter to 70.02 percent.

The Adani Group has green stocks.

Greenish activity was also seen in other Adani Group equities. Amidst rumors that the renewable energy company was in discussions to borrow $1.8 billion from a consortium of overseas lenders, Adani Green Energy saw a rise of more than one percent. According to a Bloomberg article, the money would be used to grow the company's wind and solar projects.

At this point, the information was private. According to the article, the banks that took part in these discussions were Standard Chartered Plc, First Abu Dhabi Bank PJSC, BNP Paribas SA, Deutsche Bank AG, and Barclays Plc.

The stock of Adani Wilmar saw a one percent increase in value as well, with Nuvama Institutional Equities maintaining its "buy" recommendation. However, the brokerage reduced its target price after a poor set of quarterly results, from Rs 600 to Rs 515. According to the report, a steady-state run rate is anticipated in the second half of FY24, similar to previous years, although margins would rise.

Amidst optimistic market attitude, Adani Energy Solutions, Adani Green Energy, Adani Ports, Adani Enterprises, ACC, and NDTV were all trading up to 2 percent stronger. The only Adani Group stock to go slightly lower was Ambuja Cement.