Share price of Adani Power surged over 14 percent intraday on February 25 after the company won payment of compensatory tariff.
Stock price of the company are on fire, after the Supreme Court in a ruling ordered the Rajasthan-based three discoms to pay up the balance dues, in a legacy dispute over compensatory tariffs.
The apex court held that the three Rajasthan discoms are in contempt of court, as they had not paid the dues despite their review petition having been dismissed earlier this year. The discoms had sought to review the order passed in 2020, which directed them to pay compensatory tariff to Adani Power.
The Supreme Court has now directed Rajasthan discoms to pay the compensatory tariff to Adani Power within four weeks, which amounts to Rs 4,200 crore in total. Some payments had been paid, but the entire due to Adani Power had not been cleared.
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The stock at 11:17 hours was trading at Rs 123.95, up Rs 12.90, or 11.62 percent on BSE. It has touched an intraday high of Rs 127.80 and an intraday low of Rs 117.30.
Shrikant Chouhan of Kotak Securities is of the view that on the daily and weekly charts, the stock has shown promising price volume breakout formation which support further uptrend. For the trend-following traders, Rs 122-125 would be the key support level. Above which the positive momentum is likely to continue till Rs 140-147.
The company posted a Rs 218.49 crore consolidated net profit for the December quarter in 2021-22. The company incurred a loss of Rs 288.74 crore in the year-ago period. Total income stood at Rs 5,593.58 crore in the quarter. It was Rs 7,099.20 crore in the same period a year ago.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.