Adani Power became the sixth group firm to hit Rs 1 trillion (lakh crore) market capitalisation as the stock hit an all time high of Rs 270.80 on Monday and rose as much as five percent from previous close.
Shares have surged over 165 percent this year and gained 46 percent this month.
Earlier, Adani Green Energy, Adani Transmission, Adani Total Gas, Adani Enterprises and Adani Ports & Special Economic Zone hit this milestone.
Power stocks have risen since the start of the year on expectations that energy generation companies may report strong results in the fourth quarter of 2021-22. Also, experts said that these companies may have witnessed better cash flows on payment of dues from power discoms.
As temperature has soared across the country since mid-March, there has been a sudden increase in power demand, widening the demand-supply gap.
Adani Power has recently received dues with interest totalling Rs 3,000 crore from the state-run discom in Rajasthan. While the shares had already gained since the Supreme Court ordered the discom to pay in February, the receipt of payment added to the upside.
Analysts say the surge also came after many power sector reforms were introduced for bringing efficiency and discipline in the sector.
India's growing urban population, improvement in economic activities in recent months, and the need for clean and reliable power supply provide huge scope for continued growth in power demand, according to analysts.
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