Should I buy Adani Green stocks?

An Overview on Adani Green

Adani Green is one of the largest renewable energy companies in India, with a current project portfolio of 3 GW and an operational capacity of 2 GW. It is a portfolio that is almost equally split capacity-wise between Central and state government schemes. The company has a presence in 11 Indian states, which include Gujarat, Punjab, Rajasthan, Maharashtra, Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh. With all this, the company has a portfolio of 36 operational projects and three under-construction projects.

Adani Green Energy Limited is a company that holds a vision to step forward in achieving climatic goals. It also aims at building a cleaner and greener India harnessing the power of the sun and the strength of the Wind. The company’s core value is to enrich lives and contribute to the nation in building infrastructure through sustainable value creation.

Can you Choose Adani Green?

As you know, the company is looking forward to exploring more options in expanding the share of renewable energy by 2030. Indian Industrialist Gautam Adani in Adani green has been fortunate enough to pick up India’s biggest manufacturing solar program agreement from the Solar Power Corporation of India. With the mega project in hand, they can create employment in the power sector, and it is assumed that the capacity generated in this project would be around 7500 MW.

Adani Green Energy has bagged its implications and other factors about the project. The company has been performing way past its benchmark in the past few months.

You know where this is headed. So today, we do have a positive outlook towards the company and how it is performing. Do not jump to the conclusion of choosing the company yet. Here are a few more factors that would give you the whole picture. 

A Sneak Peek at the Company’s Performance

The shares of the company have been seeing tremendous growth recently. If you take a look at the records, the company has given an 856% return in a year, which is a reflection of continuous growth. With the rise in share prices, the market capitalization of the company has also seen a tremendous amount of growth. Today their market capitalization is around Rs. 1,79,000 crore. This number is without a doubt attracting a lot of people to invest in the company.

So, what are the actual reasons behind the rising popularity and growth of the company’s stocks?

The Reasons Behind the Growth of the Company’s Shares

By now, you probably know, and it is evident that the company has got a sudden hike in the share, and the question might arise, how? Here are some of the reasons listed below:

• The most recent and significant achievement by the company is the Megaproject from Solar Energy Corporation of India.

• The size of the Megaproject is around 45000 crore, and the share price of a company witnessed a big raise after this project.

• The contract resulted in the share price rising by almost 3%.

• After the power project, the Solar Energy Corporation of India signed a guaranteed power purchase agreement with the company, which is; the power generated by the company will go to the Solar Energy Corporation of India at a fixed price.

• Post this deal, it was revealed that the Solar Energy Corporation of India had not committed any such thing, which means it is not bound to buy power from the project.

• Adani now looks for a buyer to sell the power, and in the absence of the buyer, the forty-five thousand crore deal would look risky.

• The other reason for the rise; their share prices is the public shareholding which is only 2.4 % which is weighed less as compared to the market average price. 

• 22.4% share is with the foreign institutional investors, and the company has a few domestic institutional investors.

• Another prominent reason for the rise and the stock prices is that; a lot of people are of the view that Adani Green would surely become the most powerful Renewable Energy Company in the near future.

So, Should you Invest in their stocks?

Adani Green stocks are on fire, that’s no doubt, but it is your job to analyze how investment-worthy they are. The company has been on a roll since the last year, and the combined market capitalization of all its six listed companies has increased by a whopping 20%, irrespective of the covid-19 downturn. 

Out of a lot of companies, Adani has been a star performer, and it grew more than eight times within just the last year. The company has also pursued aggressive fuel growth and it entered into four new business segments, which are wind-solar, power, and Aerospace. They have been the leading name in their sectors, respective businesses, including the number one private airport operator solar power development and private Thermal Power producer.

As an investor, the first thing you need to analyze is your risk appetite before you could start investing in Adani. Now that you have a clear picture of the company and how they have grown in the past year you will be able to analyze how you can invest your money in them.

Takeaway

On the contrary, there are other big names like Tata Group, who are trying to explore their hand in the power sector too, and they’re leaving no stone unturned to make a mark on the sector. We all know Tata is a bigger name, and they would be a strong challenge to Adani, but at the growing rate of the company, they can both be equally tough competition in the field.