Adani Group multibagger stock: Rs 1 lakh investment turned into Rs 34.99 lakhs; m-cap crosses Rs 2,00,000 crore!

In the consolidated financial results for Q2FY24, the company reported sales of Rs 12,990.58 crore, reflecting a robust 84.4 per cent YoY increase.

Paul Anthony Samuelson American Economist has said “Investing should be more like watching paint dry or watching grass grow.” These words are so true and it is quite visible how long-term investing in the right stock can change the fortune.

Adani Group stocks are in the limelight today and one of the stocks which commands special attention is Adani Power as the stock has jumped nearly 13 per cent to log a fresh 52-week high and moreover, the market-cap of the company has crossed threshold limit of Rs 2,00,000 crore.

The stock at its lowest level traded at Rs 15.15 in the year 2018 and fast forward today it has scaled to Rs 530 delivering a mutlibagger return of nearly 3398 per cent. Back in 2018 when an individual who would have invested Rs 1,00,000 in the stock would have received nearly 6,601 shares and the value of those 6,601 shares today is worth Rs nearly 34.99 lakhs, isn’t it amazing.

Adani Power, part of the Adani Group, is India's largest private thermal power producer. It sells power from its projects through a mix of long-term agreements, short-term deals, and merchant transactions. In the consolidated financial results for Q2FY24, the company reported sales of Rs 12,990.58 crore, reflecting a robust 84.4 per cent YoY increase. Operating profit showed healthy growth, rising by 202.8 per cent to Rs 7,116.49 crore as compared to Q2FY23. The net profit saw an 848.1 per cent jump YoY, reaching Rs 6,594.17 crore. The company's 81 per cent capacity is secured under LT/MT PPAs, many of which include fuel cost pass-through or tariff escalation, ensuring robust revenue visibility and cash flow stability. Proximity to pithead provides a logistics cost advantage, leading to increased off-take and improved margins. Operational excellence is maintained in fuel management, logistics, and plant Operation & Maintenance. With ample available capacity and increasing utilization to meet rising demand, the company has a proven track record in project execution and swift turnaround of acquisition.

Disclaimer: The article is for informational purposes only and not investment advice.