Adani Power shares hit upper circuit on MSCI Inclusion

Adani Power shares remained locked in the 5% upper circuit at Rs 327.50 in Monday’s session, also hitting a new high on the BSE. The stock has now moved upward for seven consecutive days.

Also Read| Sensex surges over 300 points while Nifty around 16,350 in early trade

Adani Group’s electric utilities company’s shares have risen 35% in the last seven days after index provider MSCI added Adani Power to its global index. The stock has risen 161% in the last three months, compared to a 5% fall in the S&P BSE Sensex.

Also Read| Fuel price May 23, 2022: Petrol Rs 96.72, diesel Rs 89.62 in Delhi

MSCI has added four companies from India: Adani Power, AU Small Finance Bank, Jindal Steel and Power, and Tata Elxsi, while removing HDFC AMC. MSCI’s revisions will take effect on June 1, although index funds will most likely rebalance their portfolios on May 31.

Also Read| Week ahead: China’s covid lockdown, quarterly results to weigh on Sensex, Nifty

Adani Power has 13,610 MW of installed thermal power capacity spread across seven power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, and Madhya Pradesh, in addition to a 40 MW solar power facility in Gujarat.

Also Read| Week in review: Sensex, Nifty surge after China’s rate cut

Earnings before interest, taxes, depreciation and amortisation (EBITDA) of the company increased 271% year on year to Rs 7,942 crore, up from Rs 2,143 crore in Q4FY21.

Also Read| Trending Stocks: PowerGrid, NTPC, PAYTM, JETAIRWAYS and others in news today

As compared to Q4FY21, Ebitda growth was boosted by previous period income recognition, increased shortfall claims owing to high import coal prices, and higher merchant and short term tariffs and volumes.

Also Read| Stocks that should be on your watchlist on Monday, May 23, 2022

According to Adani Power, electricity consumption in India is still growing fast, spurred by both economic development and a heatwave in the country’s northwestern regions.