Adani Stocks in Focus: Shares rise by 4% as Ports Shows Trend Reversal Amid Power Contract Win

The share price of Adani Ports experienced a jump of 4.29% following news of Adani Power securing a substantial contract to supply electricity in Uttar Pradesh. As of 12:58 PM, The company’s stock is trading at ₹1363.20.

Adani Ports: Navigating Volatility and Trend Shift

Adani Ports & Special Economic Zone (ADANIPORTS) has recently exhibited a significant trend reversal, opening with a gain and maintaining a stable price level throughout a specific trading day. This follows two consecutive days of decline. The stock opened with a gain of 5.19%, reaching an intraday high of ₹1374.95. 

Over shorter periods, Adani Ports has delivered strong returns, with a 17.50% increase over the past month and a 21.10% rise over the last three months. Its performance over the past year stands at 8.00%, compared to the Sensex's 11.79% return.

The company's market capitalisation is reported at ₹2,95,431.40 crore, with a P/E ratio of 24.97, slightly below the industry average of 26.45. The stock has jumped over 12% over a month, gained over 2% in six months, and increased 11.4% year-to-date. The firm's 52-week high and low are ₹1,621.4 (June 3, 2024) and ₹995.65 (November 21, 2024), respectively. The port sector as a whole has also recorded gains, rising by 5.23%.

Adani Power Secures Key Uttar Pradesh Contract

In a separate yet market-moving development, Adani Power announced it had won a competitive bid to supply 1,500 MW (net) of thermal power to Uttar Pradesh. As part of the contract, Adani Power will supply power at a tariff of ₹5.383 per unit. The supply will originate from a greenfield 2x800 MW (1500 MW net) ultra-supercritical power plant. The plant is to be set up in Uttar Pradesh under a design, build, finance, own, and operate (DBFOO) model, entailing an investment of $2 billion. Adani Power aims to commence supplying power by FY30.

The project is expected to generate significant employment, estimated at 8,000-9,000 direct and indirect jobs during construction and 2,000 once operational. This order is part of the government's strategy to address the anticipated rise in thermal power demand in UP, projected to increase by 11,000 MW by 2033-34 due to factors like industrialisation, urbanisation, and modernisation. Adani Power will sign a long-term power supply agreement with Uttar Pradesh Power Corporation Ltd (UPPCL) under the received Letter of Award (LoA).

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