NewsStocksAdani Power Surges 6.3% After Chairman's Letter, Leading Group Rally Amid Stock SplitAdani Power Surges 6.3% After Chairman's Letter, Leading Group Rally Amid Stock Split
Adani Power shares rose 6.3% to Rs 154.00 on the NSE, leading gains among Adani Group stocks. This recovery follows a recent 21% drop over two sessions. Chairman Gautam Adani's letter to shareholders highlighted strong financial performance, including projected EBITDA growth of 57% from FY23 to FY25. The company recently completed a 5:1 stock split, with the new shares credited under ISIN INE814H01029. Trading volume reached 5.7 times the 30-day average, indicating high investor interest. All five analysts covering Adani Power maintain 'buy' ratings.
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Adani Power shares experienced a significant uptick on the National Stock Exchange (NSE), leading gains among Adani Group stocks. The power giant's stock rose by 6.3% to reach Rs 154.00, outperforming the broader market.
Recovery and Recent Performance
The 6.3% climb to Rs 154.00 came after Adani Power shares had dropped nearly 21% over two sessions. This recovery followed a letter from Chairman Gautam S. Adani to shareholders addressing the Hindenburg report impact and SEBI's dismissal of allegations against the group. The previous decline was attributed to profit booking following a 1:5 stock split and a 35% rally driven by positive brokerage reports and regulatory clearance news.
Chairman's Letter Highlights
In his letter to shareholders, Adani highlighted the group's financial performance, noting:
- Portfolio EBITDA growth from Rs 57,205.00 crore in FY23 to Rs 89,806.00 crore in FY25, representing 57% growth.
- The group's gross block expanded by Rs 2 lakh crore over two years, reaching Rs 6,09,133.00 crore in FY25.
Key Milestones
Adani also outlined several achievements:
- Commissioning India's first container transhipment port at Vizhinjam
- Adding 6 GW of renewable capacity
- Expanding the energy network with 7,000 circuit kms of transmission lines
Strong Trading Volume
As of the latest trading session, Adani Power was trading 4.67% higher at Rs 151.20. The stock's performance has been particularly noteworthy, with trading volume reaching 5.7 times the 30-day average, indicating heightened investor interest.
Weekly and Monthly Gains
The company's stock has shown impressive gains over different time frames:
- Weekly performance: Up 8%
- Monthly performance: Up 19%
Analyst Sentiment
The stock's rally is backed by positive analyst sentiment. All five analysts covering Adani Power maintain 'buy' ratings, with a consensus target price of Rs 140.88.
Broader Adani Group Performance
Other Adani Group stocks also showed positive movement:
- Adani Total Gas: Nearly 5% intraday gains, with a 7% weekly increase and a 13% monthly gain
- Adani Green, Adani Enterprises, and Adani Ports: Each gained around 1%
Stock Split Update
Adani Power recently completed a 5:1 stock split:
- Pre-split: One equity share with a face value of Rs 10.00 each
- Post-split: Five equity shares with a face value of Rs 2.00 each
The sub-divided shares have been credited under the new ISIN: INE814H01029.
Changes in Share Capital Structure
| Type of Capital | Pre-subdivision | Post-subdivision |
|---|---|---|
| Authorised Share Capital | 2,480,00,00,000 shares (Rs 24,800.00 crore) | 12,400,00,00,000 shares (Rs 24,800.00 crore) |
| Issued, Subscribed and Paid-up Share Capital | 385,69,38,941 shares (Rs 3,856.94 crore) | 1,928,46,94,705 shares (Rs 3,856.94 crore) |
The recent performance of Adani Power and its group companies, coupled with the completion of the stock split and the chairman's reassuring letter, reflects a period of renewed investor confidence in the Adani Group. As the market continues to digest these developments, investors will be closely watching for any further movements in this dynamic sector.
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