Adani Energy share price surged as much as 4 percent Tuesday after the company inked an agreement with the Solar Energy Corporation of India (SECI). The price surged nearly 5 percent to an intraday high of Rs 1,453, rising after three days of consecutive fall. Ventura Securities has a 'buy' call on the stock. The brokerage said the stock can rise over 100 percent in the next two years.
Adani Energy share price surged as much as 4 percent Tuesday after the company inked an agreement with the Solar Energy Corporation of India (SECI). Under the agreement, the solar power developer and the renewable energy arm of Adani Group will supply over 4,600 megawatts (MW) of green power. This is the world's largest green power purchase agreement.
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This agreement is a part of a manufacturing-linked solar tender of 8,000 MW SECI awarded to the company in June 2020. It was the world's largest solar development tender ever awarded -- to the world's largest solar power developer.
"This is yet another step in our journey to enable India's dual objective to accelerate India's renewable energy footprint as well as promote domestic manufacturing under the Atmanirbhar Bharat programme," Gautam Adani, chairman of Adani Group said in a statement.
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To buy, or not to buy
Ventura Securities has a 'buy' call on the stock, with a target price of Rs 2,810. It had initiated coverage on the stock last week on Thursday. The brokerage has predicted the stock will see an upside of over 100 percent in the next 24 months. Adani Green Energy is one of the largest renewable energy companies in the country.
"With India's stated intent of procuring 450 GW from renewable energy by 2030, Adani Green is well placed to benefit from this megatrend," the brokerage said.
The stock price of Adani Green Energy surged nearly 5 percent to an intraday high of Rs 1,453, rising after three days of consecutive fall. At the last count, the shares were up over 3.7 percent to Rs 1,437, outperforming the S&P BSE Power index by 2.59 percent. The shares are 2.5 percent away from hitting a fresh 52-week high.
The shares have risen over 3 percent this week, whereas Sensex rose 0.8 percent. Moreover, while Sensex declined over 4 percent this month, the Adani Green Energy share gained 10 percent. It has outperformed Sensex by over 16 percent, as it gained over has gained over 40 percent in the past year.
(Edited by : Jomy Jos Pullokaran)