Adani Transmission climbs 4.87% as broker initiates coverage

Adani Transmission rose 4.87% to Rs 133.55 at 13:50 IST on BSE on bargain hunting after a domestic brokerage reportedly initiated coverage on the stock with a 'buy' rating.

Meanwhile, the S&P BSE Sensex was down 16.56 points, or 0.05% to 31,610.07.

On the BSE, 1.05 lakh shares were traded in the counter so far, compared with the average daily volume of 1.52 lakh shares in the past one-quarter. The stock had hit a high of Rs 135.15 and a low of Rs 129.90 so far during the day.

According to reports, a domestic brokerage has initiated coverage on shares of Adani Transmission with a 'buy' rating and net present value (NPV)-based target price of Rs 154, citing likely strong growth ahead. The brokerage expects Adani Transmission to generate robust free cash flow, though it does anticipate high growth and M&A (merger and acquisition) appetite.

Shares of Adani Transmission fell 7.35% in three trading sessions to settle at Rs 127.35 yesterday, 25 September 2017, from its close of Rs 137.45 on 20 September 2017.

On a consolidated basis, net profit of Adani Transmission declined 31.46% to Rs 84.10 crore on 3.59% decline in net sales to Rs 609.32 crore in Q1 June 2017 over Q1 June 2016.

Adani Transmission is into power transmission business and is a part of business conglomerate Adani Group.

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