Multibagger alert: This stock from the power sector has gained over 110% in a year!
Adani Power’s strong performance in FY21 powered the stock appreciation.
Adani Power, which is the largest private thermal power producer in India, has multiplied shareholders wealth by almost 2.1 times in just trailing twelve months. The stock was trading at Rs 49.35 on 9 December 2020, from where it closed at Rs 103.95 on 8 December 2021 on the BSE.
The multibagger stock had a modest quarterly performance. Net sales for the quarter ended September 21 came in at Rs 5,572 crore compared to Rs 8,792 crore in Q2 FY21. The difference is due to higher one-time regulatory revenue of Rs 3,233 crore recognized in Q2 of the previous year. The EBITDA (exclusive of other income) was Rs 1,163 crore which saw a decrease of 71% YoY. Again this was due to higher one-time revenue recognition in the previous year. The company recorded net losses of Rs (230) crore in the quarter while it had recorded net losses of Rs (110) crore in the Q2FY21.
According to the company’s press release, this multibagger company’s capacity utilization at the Tiroda plant improved due to higher grid demand in the leading industrialised state of Maharashtra. Similarly, Raipur and Raigarh plants were able to achieve higher volumes in the merchant and short-term markets. However, the Mundra plant witnessed lower capacity utilization due to high import coal prices and low grid demand at Udupi due to higher renewable energy penetration.
Adani Power, as India’s leading private thermal power producer, stands ready to serve the growing electricity demand, while ensuring the betterment of communities around it.
The stock has a 52-week high of Rs 167.05 and a 52-week low of Rs 42.75. As of 9 December 2021, the stock is trading at Rs 104.45 as of 12:57 pm, up by about 0.6% on the BSE.
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