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Adani Group stocks rally on power demand and funding news

EditorPollock Mondal
Published 12/05/2023, 04:29 AM
© Reuters.
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Shares of Adani Group's energy companies saw a significant surge today, with the S&P BSE Power index reaching an intra-day high, driven by investor optimism over rising power demand linked to economic improvements. Adani Green Energy Ltd (AGEL) was particularly notable, hitting an upper circuit limit with a two-day gain of 31%, trading at Rs 1,348 (Rs 1 = $0.012). Adani Energy Solutions and Adani Power also experienced robust intra-day advances.

The rally comes as AGEL announced a substantial funding initiative of $1.36 billion aimed at supporting construction financing for the development of the world's largest renewable energy (RE) park in Khavda, Gujarat. This strategic move is expected to significantly bolster the company's capacity in the renewable sector.

In the broader context of the Indian power sector, analysts from ICICI Securities have highlighted NTPC's recent performance, marking a new high on BSE amid plans for an ambitious addition to its renewable capacity. This expansion is projected to drive EBITDA and profit after tax (PAT) growth at an estimated compound annual growth rate (CAGR) of over 16% from financial year (FY) 2023 through FY25.

India's push towards infrastructure development is anticipated to further escalate electricity consumption. This outlook aligns with forecasts by S&P Global Ratings, which predicts that India will experience GDP growth of 7% in FY26-27 and ascend to become the third-largest global economy by 2030.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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