Adani Power is a power generation company in India. It is the largest private-sector power generation company and developed several plants including thermal, solar, and wind power plants. Adani power share price has fluctuated over various factors such company’s performance, economic conditions, and market trends. In 2022, Adani’s share price has increased unexpectedly high and profitable for investors. Not only in India, Adani has made a presence in Indonesia and Australia both.
Adani has experienced immersed growth over the past years and it is going to continue a major player in next coming years. There are many benefits to investing in Adani’s power share. Let’s look at why one should invest in Adani’s power share.
- Growth prospect: India’s GDP growth is increasing fast at an average rate of 7% annually till 2030. An increase in GDP led to rapid industrialization and urbanization which requires demand for power or electricity. The overall requirement of power may get three times over the next two decades. Adani power share has the potential to grow in the future.
- Dominant market: Adani power share has rapidly increased in the last recent years and ranks among the top leading private thermal electricity producers of India. Adani Power share controls 7% of nationwide installed capacity. The company runs a coal power plant of 12450 megawatts distributed in four states Gujrat, Maharashtra, Karnataka, and Rajasthan. In the same manner, distribute 1600 megawatts of renewable energy capacity. Hence, Adani power share has attained a prime and vital position in the power generation industry.
- Strong parentage: Adani Power is part of a reputed Adani conglomerate. Adani Power has used substantial financial resources effectively and project execution capabilities have been leveraged by Adani Power. Even the promoter’s strong relationship with political connections has boosted the performance of the company’s growth. Adani’s impressive history in making important infrastructure assets shows its expertise in project management.
- Financial performance: Adani Power’s capacity to expand financial performance drives gains attraction. Revenues grow at a 3-year compound annual growth rate of 22% to 26,361 crores. Despite having debt fund investments, Adani has project execution which ensured comfortable debt coverage.
- Share price: Adani Power’s share price has risen over 70% in the last four trade sessions. According to the history of Adani’s history of price, Adani stock closed at 97.35 on the National Stock Exchange in 2021 on 3rd June. It gives over 70% return to the shareholder.
Conclusion
Adani power share has experienced growth and has the potential to still increase in the near future. It also appeals for a 5% dividend yield to investors. Considering the fact that the company has maintained a stable financial condition in the past and the share price has shown an upward trend. Hence, it is a good option for investors to invest in Adani’s power share to potentially earn return and dividends but keep in mind the inherent risk of the market. 5paisa may help investors in investing and minimizing risk factors as much as possible.
