Fifth consecutive day of downward circuit for Adani Power; stock down 23% in five days.

 In Wednesday's BSE trading, shares of billionaire Gautam Adani's Adani Power struck another 5% lower circuit at Rs 140.9. Since the December quarter results, the stock has decreased by almost 23%.

Adani Power announced last Wednesday that its consolidated net profit for the December quarter fell by 96% to Rs 9 crore from Rs 218 crore in the same quarter last year.

However, operating revenue for the quarter under review climbed 45% year over year (YoY) to Rs 7,764 crore, primarily as a result of higher regulatory claims, expanded operating capacity, and enhanced tariff realisation.

“I do believe there is a case for some value in names like Ambuja and Adani Port, but it is unclear exactly when the industry or the companies will stabilise. Additionally, this MSCI impact is widely known, and you will see some sell flows around it. However, in my opinion, it would be wiser to avoid the names until we have some stability regarding how exactly it will play out, rather than attempting to enter it and ending up in the midst of intense volatility. So it would be best to avoid it at this time.” 

Says Hemang Jani, Equity Strategist & Senior Group VP, MOFSL

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