Adani Green Stock Jumps 55% In a Week, Experts See Future Gain; Should you Buy?

Adani Green Share Price: Adani Green shares are one of the multi-bagger stocks in 2022. Adani Green Energy share price soared 9.3 per cent to Rs 2,951.90 apiece on BSE, a fresh 52-week high, on Tuesday, a day after the company became 10th most valued firm in India. In year-to-date time, this Adani group stock has risen to the tune of 110 per cent surging from around Rs 1345 to Rs 2795 apiece levels. On Monday, the stock surged over 16 per cent to Rs 2701.55 apiece on BSE. Adani Green Energy has more than doubled the investors’ money so far this year by rising nearly 110 per cent. The stock price has added 28 per cent in five days, and 55 per cent in the last one month. While it has surged 160 per cent in the past one year.

Meanwhile, Nifty Energy index of which Adani Green Energy Ltd is a constituent, has risen around 13.18 per cent in last one month and is currently quoting at 28235.25, down 0.23 per cent on the day. The volume in the stock stood at 57.12 lakh shares today, compared to the daily average of 13.14 lakh shares in last one month. The PE of the stock is 0 based on TTM earnings ending December 21.

Should you Invest?

“We expect the counter to continue its outperformance in the coming trading days as well with a target of around 15-18 percent in the long term,” Ravi Singh, VP & Head of Research, Share India Securities

The company also entered the list of top-10 valued firms on Monday as its market valuation zoomed over Rs 4.22 lakh crore, backed by a sharp rally in its share price. The company commanded a market valuation of Rs 4,22,526.28 crore to grab the tenth spot on the top-10 list. The company pipped Bharti Airtel to enter the top-10 list. Bharti Airtel’s valuation is at Rs 4,16,240.75 crore.

The total operational capacity of the company increased by 56 per cent year-on-year to 5,410 MW while the sale of energy increased by 84 per cent year-on-year at 29.71 crore units in Q4 FY22. Adani Green’s solar portfolio capacity utilisation factor stood at 26.4 per cent with a 210 basis points improvement year-on-year backed by approximately 100 per cent plant availability.

The wind portfolio capacity utilisation factor of the company stood at 23.6 per cent with 140 basis points improvement year-on-year backed by approximately 98 per cent plant availability.

International Holding Company, an Abu Dhabi-based conglomerate, will also invest USD 2 billion in three Adani Group green-focused enterprises. Santosh Meena, Head of Research, said: ” Recently the company announced on stock exchange about the increase in company’s total operational capacity 56 per cent YoY and energy sale shot up 84 per cent during similar timeframe. Adani group management also informed about fresh investment coming into the AGEL citing, “Initiating an inter-generational relationship with Adani group, Abu Dhabi based International Holding Company PJSC (IHC) will invest around USD 500 mn ( Rs 3,850 crore) as primary capital in AGEL.”

The group’s flagship company, Adani Enterprises Ltd, will get Rs 7,700 crore (USD 1.02 billion) by issuing preferred shares to IHC, while Adani Green Energy Ltd (AGEL) and Adani Transmission Ltd (ATL) will each receive Rs 3,850 crore through the same equity instrument, according to the group.

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