Adani Enterprises has surged 8% to Rs 235 on back of heavy volumes. The stock opened at Rs 215 and touched high of Rs 237 on the National Stock Exchange (NSE).
A combined 4.11 million shares have already changed hands on the counter till 1330 hours against an average sub 3 million shares that were traded daily in past two weeks on the NSE and BSE.
Analyst at Edelweiss Securities maintains ‘Buy” rating on the stock with target price of Rs 329 per share saying that the company is hopeful of a favorable outcome from electricity regulator Central Electricity Regulatory Commission (CERC) on the compensatory tariff, post which it believes cash flows should improve for Adani Power to be self sustainable.
"With the power and port businesses at the end of peak capex cycle and likely comfort on power tariffs, cash flows should improve. With the focus shifting on containing the debt levels, we believe the quality of balance sheet is set to improve", said analyst in a report dated October 31.
Meanwhile, CERC on November 13 will hear Adani Power's plea seeking increase in tariff from its thermal power plant in Gujarat due to rise in price of coal from Indonesia.
Adani Power had petitioned CERC for evolving a mechanism to meet the escalation in fuel cost due to enactment of new coal pricing regulation by Indonesian government, the PTI report suggests.
A combined 4.11 million shares have already changed hands on the counter till 1330 hours against an average sub 3 million shares that were traded daily in past two weeks on the NSE and BSE.
Analyst at Edelweiss Securities maintains ‘Buy” rating on the stock with target price of Rs 329 per share saying that the company is hopeful of a favorable outcome from electricity regulator Central Electricity Regulatory Commission (CERC) on the compensatory tariff, post which it believes cash flows should improve for Adani Power to be self sustainable.
"With the power and port businesses at the end of peak capex cycle and likely comfort on power tariffs, cash flows should improve. With the focus shifting on containing the debt levels, we believe the quality of balance sheet is set to improve", said analyst in a report dated October 31.
Meanwhile, CERC on November 13 will hear Adani Power's plea seeking increase in tariff from its thermal power plant in Gujarat due to rise in price of coal from Indonesia.
Adani Power had petitioned CERC for evolving a mechanism to meet the escalation in fuel cost due to enactment of new coal pricing regulation by Indonesian government, the PTI report suggests.
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