Adani Power shares saw a nearly 2% increase, reaching Rs 575.00, following the company's board approval of a 1:5 stock split. This strategic move aims to enhance retail investor participation by making the shares more accessible.

Stock Split Details

The board has given the green light to subdivide each equity share with a face value of Rs 10.00 into five shares with a face value of Rs 2.00. It's important to note that this split won't alter the company's total share capital, which stands at Rs 3,856.90 crore. The record date for this split is yet to be announced, pending shareholder approval.

Financial Performance

Adani Power's recent quarterly results paint a mixed picture:

While the year-on-year comparisons show declines, it's worth noting that EBITDA from continuing operations saw a 12.70% increase on a sequential basis.

Market Sentiment

Despite the recent uptick, Adani Power's stock has experienced a 21.00% decline over the past 12 months. However, looking at a longer time frame, the stock has delivered an impressive 105.00% return over two years.

Analysts maintain a positive outlook on Adani Power:

• Consensus Rating: Strong Buy
• Average Target Price: Rs 634.00
• Potential Upside: 11.00%

The stock split decision, coupled with the company's financial performance and analyst sentiment, suggests that Adani Power is focusing on broadening its investor base while navigating market challenges.

Adani Power Limited (APL), India's largest private thermal power producer, has announced its financial results for the first quarter, demonstrating resilience in the face of challenging market conditions.

Financial Highlights

APL reported consolidated revenue of ₹14,167.00 crores and EBITDA of ₹5,744.00 crores for Q1. The company's revenue was affected by lower merchant tariffs and import coal prices compared to the previous year.

Operational Performance

APL's power generation stood at 25.7 billion units with plant availability maintained above 91%. The company's operating capacity has increased to 18,150 MW following the completion of the acquisition of 600 MW VIPL capacity.

Strategic Developments

1. Adani Power signed a new 1,500 MW Power Purchase Agreement (PPA) with Uttar Pradesh Power Corporation Limited for 25 years.

2. The company received AA credit ratings from multiple agencies including ICRA, CARE, and India Ratings.

3. Net debt to continuing EBITDA ratio stood at 1.78 times as of June.

Market Performance

Adani Power continues to strengthen its position in India's power sector through strategic acquisitions and long-term agreements. The company's focus on operational excellence and financial prudence is reflected in its credit ratings and debt management.

As Adani Power navigates through market challenges, its commitment to expanding capacity and securing long-term contracts positions the company to play a crucial role in India's evolving energy landscape.