Adani Power Share Price Rise for Third Straight Session: Gain 4.82% to ₹506.55

Adani Power’s share price surged over 4% on Wednesday, marking its third consecutive session of gains. The stock climbed as much as 4.66% to ₹506.10 on the BSE.

Strong Financial Position

Adani Power has successfully resolved long-standing disputes related to its power purchase agreements (PPAs). Legal victories, renegotiated PPAs to reduce fuel risks, and securing coal at competitive rates have strengthened the company’s position.

The company’s financial health has improved through debt reduction and promoter fund infusion. Extra cash generated was used to repay external debt, creating room for future growth. Adani Power is now expanding through acquisitions and new projects.

Growth Strategy and Expansion

Adani Power has acquired struggling coal-based power plants at attractive prices and turned them profitable due to a demand-supply mismatch. The company has also placed orders for 11GW of new coal-based power plants.

With a rise in merchant power prices, Adani Power is securing long-term PPAs for its new capacities. It has already tied up around 3GW of capacity at competitive rates. 

With past challenges resolved and expansion plans in motion, Adani Power is well-positioned for future growth.

About Adani Power

Adani Power, a subsidiary of the Adani Group, is an Indian multinational company in the power and energy sector. Headquartered in Khodiyar, Ahmedabad, it is a leading private thermal power producer with a total capacity of 15,250 MW. The company also operates a 40 MW mega solar plant in Naliya, Bitta, Kutch, Gujarat.

As of 1:24 PM IST on March 5, Adani Power share price stood at ₹506.55, up ₹23.30 or 4.82% for the day. The stock opened at ₹484.00 and reached a high of ₹507.70, while the low for the day was ₹484.00. Adani Power has a market capitalisation of ₹1.95 lakh crore and a P/E ratio of 15.01. The stock’s 52-week high is ₹895.85, while its 52-week low is ₹432.00.

Conclusion

With resolved legal issues, improved financial health, and strategic expansions, Adani Power is well-positioned for long-term growth, with a 24% upside potential.

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