Five Reasons to Add Adani Power to Your Portfolio
Adani Power is a leading company in India’s energy sector. It has also been working towards developing sustainable energy solutions in India and reducing the reliance on fossil fuels. This article will dive deep into why investors should consider Adani Power a good portfolio option.
5 Reasons to Invest in Adani Power
Here are the top 5 reasons why investing in this stock is beneficial for investors.
History of Adani Power
Adani Power, a part of the Adani group, invests in various fields including infrastructure, real estate, energy & logistics. The company was set up by Gautam Adani in 1996 with a 330 MW power plant in Gujarat. Over the years the company has come a long way and expanded rapidly nationwide.
Adani Power is India’s one of the largest private companies that produces 10,934 MW of energy. It is also planning to promote the renewal of energy production with an aim of 45 GW by the year 2030.
Recent Performance of Adani Power
Adani Power is continuously strengthening its position in thermal and renewable power plants. From the chart given below a glimpse of the sustainable growth of Adani Power can be visible.
| Month & Year | Stock Price | Volume | Profit/Loss (%) |
| January 2024 | ₹523.25 | 1.1 Million | N/A |
| February 2024 | ₹564.35 | 1.4 Million | 0.784% (Profit) |
| March 2024 | ₹554.15 | 989k | 1.77% (Loss) |
| April 2024 | ₹533.80 | 3.4 Million | 3.80% (Loss) |
| May 2024 | ₹608.10 | 5.9 Million | 14.08% (Profit) |
| June 2024 | ₹874.50 | 40 Million | 43.80% (Profit) |
| July 2024 | ₹717.45 | 3.4 Million | 17.97% (Loss) |
Adani Power share price at the start of this year was ₹523.25 which is at present ₹675+.
Company Financials
India is pursuing renewable energy sources and Adani Power holds a large share in it. For FY24 Adani Power’s net revenue has increased up to 37% ₹50960 cr while its EBITDA has doubled reaching ₹ 18789 cr. These growth prospects make this share a top preference for investors.
The company reported an increase in sales volume by 48% in FY2024 to 79.3 BU from 53.4 BU in FY2023. Its consolidated Profit After Tax (PAT) also increased by 94.20% in FY2024 reaching ₹ 20,829 cr from ₹10,727 cr in FY2023.
Diversified Portfolio
Adani Power has invested in several renewable energy programs. So the factor of risk has reduced a lot and the revenue generated from it is quite stable. It has invested USD 100 billion for the next 10 years, which is quite huge.
Adani Power has also undertaken various innovative pilot projects, including hydrogen Fuel Cell Electric Trucks to promote decarbonization. Besides planting 100 million trees by 2030 and green hydrogen eco-system is giving the company great financial attention and revenue.
Potential Growth in Share Price
India’s demand for energy is continuously increasing. So the opportunities for Adani Power are also ample. Adani Power’s share price has delivered a 170% return in the last year. The company’s intraday high has also reached ₹647.80 apiece on NSE.
The experts have also predicted it may touch up to ₹800 by the next quarter. These figures show that the performance of Adani Power is continuously high and doesn’t show any sign of a sudden fall.
Conclusion
In a nutshell, Adani Power is a leading power producer company in India. Investors can conduct their research and, based on their financial goals and risk appetite, consider Adani Power stock through demat account opening.
