The share price of Adani Power rose by over 70% in the last four trading session. The investors may be wondering the reasons for such a phenomenal performance.
At the time of writing, the last traded price of the share is Rs 151.2 which is about -0.36% change from previous trading session closing.
According to experts in stock market, there are two main reasons for this meteoric rise.
One reason is that the company has made investments in green energy and this is attracting value buyers.
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The other reason is that long overdue payments receivable from Rajasthan and Maharashtra governments have been received in part.
Besides these two reasons, there is one more contributing factor. The delisting of the company from the exchanges was cancelled and this has convinced investors that the share price will rise. This may be so because price rise happened in the share of Vedanta in a similar scenario.
On guidance how to participate in the share, Mudit Goel, Senior Research Analyst at SMC advised that the share price after giving a breakout at Rs 100 rose further and broke strong hurdle at Rs 150.
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Goel advises that those are holding the share to have stoploss at Rs 150 and target between Rs 185 to Rs 190.
For long-term timeframes, Ravi Singhal of GCL Securities advised that the current prices are not the place to buy. His recommended price range for buying is Rs 120 to Rs 150. He sees the share price possibly reaching up to Rs 255 in six to eight months.
He cautions that those buying the shares of Adani Power should maintain long-term perspective and maintain strict stoploss at Rs 99, but the buying must be done in the price range suggested.
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