Adani Green Energy, Adani Power Shares Jump On Power Supply Contracts With Maharashtra
The solar projects will be developed in phases over a three-year period, starting from the execution of the agreements with MSEDCL.
Shares of Gautam Adani-owned Adani Green Energy Ltd. and Adani Power Ltd. rose over 7% on Monday as the companies bagged separate contracts from the Maharashtra State Electricity Distribution Co., to supply solar and thermal power from the renewable energy park being developed at Khavda in Kutch, Gujarat.
Adani Power will sign a long-term agreement with MSEDCL for the supply of 1,496 MW (net) thermal power to Maharashtra state from a new 1,600 megawatt ultra-supercritical thermal power project. While, Adani Green Energy will similarly enter an agreement for the supply of five gigawatt solar power from Khavda at a flat tariff of Rs 2.70 per kilowatt hour for the supply of power for 25 years, as per an exchange filing.
The solar projects are anticipated to be linked to the inter-state transmission system and will be developed in phases over a three-year period, starting from the execution of the power purchase agreements with MSEDCL.
"We are glad to collaborate with MSEDCL to meet the states' rising energy demand through renewable sources and fulfill its renewable energy commitments," said Sagar Adani, executive director, Adani Green Energy. "Our goal is to accelerate India's clean energy transition. This is a crucial step towards the country's energy independence and building a sustainable future."
Emkay's Outlook
The solar power supply bid is expected to have a capacity utilisation factor of 24%. The company is set to gain from more traction in hybrid projects. As a result, earnings per share estimates have been raised by 4% for fiscal year 2025 and 2% for fiscal year 2026, while the estimate for fiscal year 2027 has been adjusted upward by only 1%, according to Emkay.
Adani Green Stock Movement
Shares of Adani Green Energy rose as much as 7.26% to the highest level since Sept. 6, before paring gains to trade 6.02% higher at Rs 1,891.50 apiece, as of 10:17 a.m. This compares to a 0.23% rise in the NSE Nifty 50.
The stock has risen 18.39% year-to-date. Total traded volume so far in the day stood at 1.60 times its 30-day average. The relative strength index was at 54.60.
Out of three analysts tracking the company, two maintain a 'buy' rating, and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 2.9%.
Adani Power Stock Movement
Adani Power stock advanced 7.59% to the highest level since Aug. 23. It pared gains to trade 6.29% higher at Rs 673.30 apiece, compared to a 0.23% rise in the NSE Nifty 50 as of 10:23 a.m.
The scrip has risen 28.25% year-to-date. Total traded volume so far in the day stood at 1.18 times its 30-day average. The relative strength index was at 53.46.
Ventura Securities maintains a 'buy' rating on the company, according to Bloomberg data.
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