Adani Green locked in 5% upper circuit; stock hits fresh record high

In the past three months, the stock has zoomed 173 per cent from the level of Rs 52 on the BSE

Shares of Adani Green Energy were locked in 5 per cent upper circuit at Rs 142, also its new high, on the BSE on Monday on the back of heavy volumes. The stock surpassed its previous high of Rs 139 touched on December 2, 2019.

The trading volumes on the counter jumped 1.5 times with a combined 1.9 million equity shares changing hands on the NSE and BSE. There were pending buy orders for 216,123 shares on both the exchanges at 12:24 pm.

In the past three months, the stock of the Adani Group renewable power generation Company has zoomed 173 per cent from the level of Rs 52 on the BSE. In comparison, the S&P BSE Sensex was up 7 per cent during the same period.

On December 16, the company said its $362.5 million (about Rs 2,570 crore) bonds issue attracted the interest of investors worldwide.

The three wholly owned subsidiaries of solar power under Adani Green Energy – Adani Renewable Energy, Kodangal Solar Parks and Wardha Solar (Maharashtra) – issued the bonds. Between them, they have a total solar capacity of 570MW, and long-term power purchase agreements with a weighted average remaining term of about 24 years with entities such as state-backed Solar Energy Corp of India, it said.

Adani Green Energy builds, owns and operates power plants powered by renewable sources of energy like solar and wind. The Company has an installed operational capacity of 2,420 MW spread across eleven states in India.

In H1FY20 (April-September), the group won bids for 130 MW wind and 600 MW Hybrid. Post completion of all the bids won and projects under implementation, the Group’s operational capacity would be 5,290 MW.

The Government of India plans to install renewable sources of 175 GW by 2022 and 450 GW by 2030 under the Paris agreement. Adani Green Energy, therefore, believes that its portfolio size will increase significantly, in-line with the industry. The renewable energy tariffs have declined from Rs 9.3/kWh to Rs 3.1/kWh (upper range) and from Rs 5.5/kWh to Rs 2.6/kWh (lower range).

“Due to an increase in efficiency, module prices have fallen. We estimate the prices to fall further on a secular basis. The land requirement has also decreased – the first solar plant set up in Bitta, Gujarat had required 110sqmt for 115w modules whereas 400w modules require only 2 sqmt currently. The land requirements will decline further as the world is moving towards bifacial solar panels,” analysts at Systematix Shares and Stocks (India) said in company report. The brokerage firm have not assigned rating on Adani Green Energy.