Multibagger Adani Group stock rebounds 155% from 52-week low; is it a good time to buy? – Business Today

Shares of Adani Power Ltd have gained 155% from their 52 week low hit in February end this year. Adani Power shares fell to a 52-week low of Rs 132.55 on February 28, 2023. In the current session, the stock was trading at Rs 338.10 in the afternoon trade on BSE, delivering 155.07% returns during the period. The Adani Group stock has delivered multibagger returns of 201% and 838% in two and three years, respectively. On September 12 this year, Adani Power stock touched a 52-week high of Rs 410. Since then, it has slipped 17% from the yearly high.
Market cap of the firm rose to Rs 1.30 lakh crore. The firm saw 7.35 lakh shares changing hands amounting to a turnover of Rs 24.88 crore on BSE. The Adani Group stock has a beta of 1.5, indicating high volatility in a year.
With the Adani Power stock surging 155% from 52 week low, here’s a look what analysts said on the outlook of the stock and is it a right time to buy the scrip.
Commenting on the outlook of Adani Power, Abhijeet from Tips2trades said, “Technically, Rs 390 is a strong resistance on the Daily charts. Investors should buy only if there is a dip close to the support of Rs 309.”
Vaishali Parekh, AVP, Prabhudas Lilladher said, “Adani Power has also rallied decently finding resistance near the Rs 409 level and has slipped to some extent with near term support at Rs 360 levels. The overall trend is maintained strong and expect further rise after a short consolidation.”
Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets has a sell call on the stock with a target price of Rs 300-280. Stop loss can be fixed at Rs 360.
“On the daily chart of Adani Power, we are observing a lower top lower bottom formation, which is a sign of weakness. At present, immediate support is at Rs 338 level, if breached then selling pressure will intensify. Even the momentum indicator viz. MACD is negatively poised. Hence, one can sell the stock at Rs 341 with a stop loss of Rs 360 for a target Rs 300-280 levels in a couple of weeks,” added Vasudeo.
In terms of technicals, the relative strength index (RSI) of Adani Power stands at 36.5, signaling it’s trading neither in the overbought nor in the oversold zone. Adani Power shares are trading lower than the 5 day, 20 day, 30 day, 50 day but higher than the 100 day and 200 day moving averages.
Adani Power reported a 83.25 percent rise in consolidated net profit for the quarter ended June 2023 at Rs 8,759.42 crore against Rs 4,779.86 crore reported in the June quarter of last fiscal, led by massive other income. However, revenue from operations slipped to Rs 11,005.54 crore, down 19.80 percent from Rs 13,723.06 crore during the corresponding quarter of last fiscal.
Other income zoomed to Rs 7,103.47 crore and included one-time recognition of prior period regulatory revenue amounting to Rs 6,497 crore, primarily on account of late payment surcharge.
Disclaimer: This article is for informational purpose only. Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today. Please consult your financial advisor or a qualified stock market expert before taking any position in the mentioned stock or stocks. Business Today will not be responsible for losses arising from trading or investing in these stocks.
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