Adani Transmission extends gains on brokerage rating

Adani Transmission rose 2.47% to Rs 136.90 at 10:26 IST on BSE, with the stock extending Tuesday's gains triggered by reports that a domestic brokerage initiated coverage on the stock with a 'buy' rating.

Meanwhile, the S&P BSE Sensex was down 98.66 points or 0.31% at 31,501.10.

On the BSE, 31,000 shares were traded in the counter so far, compared with average daily volumes of 1.34 lakh shares in the past two weeks. The stock had hit a high of Rs 138 and a low of Rs 135.50 so far during the day. The stock had hit a record high of Rs 156 on 13 September 2017 and a 52-week low of Rs 34 on 30 September 2016.

The large-cap company has equity capital of Rs 1099.81 crore. Face value per share is Rs 10.

Shares of Adani Transmission have risen 7.49% in two trading sessions to its ruling market price, from its close of Rs 127.35 on 25 September 2017. The stock had surged 4.91% to settle at Rs 133.60 yesterday, 26 September 2017.

According to reports, a domestic brokerage has initiated coverage on shares of Adani Transmission with a 'buy' rating and 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.

On a consolidated basis, net profit of Adani Transmission declined 31.5% to Rs 84.10 crore on 3.6% 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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