Analysis of Adani Power Ltd. – One Month Period Overview
As a professional trader, it’s crucial to have a well-rounded understanding of recent trends, financial performance, and other key metrics. This analysis covers Adani Power Ltd. over the last month based on the data available as of November 19, 2024.
Current Share Price
The Adani Power share price is Rs 524.10, showing a decrease of 0.53% from the previous day's close of Rs 549.10.
Price Movement
Adani Power's stock performance over the last month reveals significant volatility:
- The share price fell from Rs 645 on October 11, 2024, to Rs 524.10 on November 19, 2024, a decline of approximately 18.7%.
- The stock recorded a maximum high of Rs 627 and a low of Rs 541.30.
Trading Volume and Activity
- Daily trading volume varied dramatically between 1.2 million and 7.5 million shares.
- Notably, on November 12, 2024, 2,438,708 shares were traded with a price change of -3.63%.
Financial Performance
- Consolidated net sales for the quarter ending September 2024 increased by 2.68% YoY, reaching Rs 13,338.88 crore.
- Standalone net sales fell by 0.7% YoY to Rs 10,264.26 crore.
Key Metrics
A few critical metrics for evaluating Adani Power include:
- Market Capitalization: Roughly Rs 215,198 crore, with variations across different data sources.
- EPS (TTM): Rs 41.44
- PE Ratio: 14.75
- Book Value Per Share: Rs 112.34
- Dividend Yield: 0.00%
Recent News & Catalysts
- There was a notable reduction in power supply to Bangladesh by over 60% due to outstanding payments, but recent efforts by Bangladesh to expedite payments have improved the situation.
Technical Indicators and Volatility
- 52 Week High/Low: Rs 895.85 / Rs 289.35
- Beta: 1.76, highlighting increased volatility compared to the broader market.
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This comprehensive analysis of Adani Power Ltd. over the last 30 days provides a holistic view of important financial data, trading activities, and market indicators essential for making well-informed trading decisions.
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Analysis of Adani Power Ltd. Based on Past Year's Performance
For traders examining Adani Power Ltd., understanding the financial metrics and market dynamics is crucial. Below is a detailed analysis based on the data from the past year.
Financial Performance
Revenue Growth:
Adani Power recorded a 40.1% increase in revenue for FY24, amounting to Rs 602,815 million, compared to Rs 430,405 million in FY23. The company’s revenue has shown strong growth with a CAGR of 21.3% over the past five years. This indicates robust business expansion and operational efficiency. For more on revenue analysis strategies, visit our comprehensive guide on analyzing stocks for investment.Net Profit:
The net profit jumped 94.2% to Rs 208,288 million in FY24, from Rs 107,266 million in FY23. This stark rise signifies improved profitability. Historical net profits provide further context: Rs 49,116 million in FY22 and Rs 12,700 million in FY21.
Profit Margins
Operating Profit Margin:
The operating profit margin improved to 36.1% in FY24 from 25.9% in FY23, reflecting better cost management and increased operational efficiency.Net Profit Margin:
Net profit margin grew significantly, reaching 41.4% in FY24 from 27.7% in FY23, showcasing how the company has enhanced its profit generation from its revenue streams.
Financial Health Indicators
Debt to Equity Ratio:
The ratio improved to 0.6 in FY24 from 1.1 in FY23, suggesting healthy leverage management. A lower debt to equity ratio indicates a more secure financial structure.Interest Coverage Ratio:
Improved from 3.3 in FY23 to 7.1 in FY24, which highlights increased capacity to meet interest payments—a positive sign for stakeholders concerned about financial solvency.Return on Assets (ROA) and Return on Equity (ROE):
ROA increased to 26.3% in FY24 from 16.4% in FY23, while ROE climbed to 48.3% from 35.9%, suggesting efficient use of assets and equity to generate profits.
Share Price Performance
- Over the last year, Adani Power's share price has surged from Rs 259.5 to Rs 549.4, achieving a gain of approximately 150.5%. This significantly outpaces the S&P BSE POWER Index, which increased by 79.5% over the same period.
- The current trading price stands at Rs 549.10, although recent trends indicate a -13.83% movement over the past month and a +4.56% change year-to-date. For insights into market timing, see best times to trade stocks.
Valuation Metrics
- P/E Ratio: The price-to-earnings ratio for FY24 is 10.3x, a measure that helps assess how the stock is valued relative to its earnings.
- EV/Sales Ratio: Stands at 4.71x, indicating the enterprise value relative to sales—a metric outlining market valuation concerning revenue generation.
Recent Quarterly Performance
- In Q4 FY24, continuing revenue expanded by 29% year-over-year to Rs. 13,787 Crore, and EBITDA more than doubled to Rs. 5,273 Crore. This indicates robust quarterly performance contributing to the annual results. For more on quarterly earnings analysis, learn how to read stock charts.
These insights provide a comprehensive picture of Adani Power's financial strength, growth trajectory, and market positioning, critical for making informed trading and investment decisions. For aspiring traders interested in enhancing their skills, exploring stock trading strategies for beginners could be beneficial.
For further detailed analysis and understanding of trading concepts, you can dive into topics such as long vs. short stock trading and advanced stock trading techniques.
Disclaimer: This information material (regardless of whether it reflects opinions or not) is intended solely for general information purposes. It does not constitute independent financial analysis and is not financial or investment advice. It should not be relied upon as a decisive basis for an investment decision. This information material is never to be understood as GlazHome/CostGame recommending or deeming the acquisition or disposal of certain financial instruments, a particular timing for an investment decision, or a specific investment strategy suitable for any particular person. In particular, the information does not take into account the individual investment goals or financial circumstances of any individual investor. The information has not been prepared in accordance with the legal requirements designed to promote the independence of financial analysis and is therefore considered a marketing communication. Although GlazHome/CostGame is not expressly prevented from acting before providing the information, GlazHome/CostGame does not seek to gain an advantage by disseminating the information beforehand.
