Adani Power share price put on a dazzling show on Friday, zooming nearly 9% to touch a 52-week high of ₹686.95.
The buzz around the stock ahead of its upcoming 1:5 stock split, scheduled for September 22, brought a fresh wave of enthusiasm among investors.
The split, which will make the shares more affordable by increasing the number of shares fivefold, is especially appealing to retail traders looking to get a foothold in one of India’s fastest-growing power players.
This sharp rally comes on the heels of Morgan Stanley’s upbeat coverage, which suggested there could be nearly 30% more upside, making Adani Power a hot pick right now.
The stock’s daily surge outpaced the broader market, catching the eye of traders who see growth and resilience in the power giant despite mixed market tides.
Adani Power share price: What’s behind the sharp rise?
It’s not just the stock split fueling this rally. Morgan Stanley’s recent upgrade was a game-changer. The brokerage lauded Adani Power’s growing list of power purchase agreements, spotlighting a big 1,600 MW ultra-supercritical thermal project in Madhya Pradesh, among others.
Together, these contracts suggest a steady revenue stream and long-term growth potential. On top of that, the company has been racking up wins with new projects and securing government-backed contracts that add to investor confidence.
And let’s not forget, solid financials, improving debt metrics, and cash flows are making the stock more attractive.
The split is also drawing in more retail interest, eager to snap up shares at a lower price point once the split hits.
The rally in Adani Power share price came as Adani Group stocks saw a sharp rally, gaining between 1% and nearly 10% after India’s market regulator SEBI gave the conglomerate a clean chit in the long-running Hindenburg case.
The decision lifted the cloud of regulatory uncertainty that had weighed heavily on the group for over two years and wiped billions off its market value.
Investors welcomed the clarity, sparking strong buying across flagship stocks such as Adani Enterprises, Adani Power, Adani Total Gas, and Adani Green Energy.
What analysts say?
The word from the street is largely positive. Morgan Stanley called Adani Power a true “turnaround story” with strong earnings visibility through 2033 thanks to resolved regulatory issues and expanding project pipelines.
The power sector overall remains crucial to India’s energy future, and Adani Power looks like it’s leading the charge.
Despite some volatility in the broader market, the stock is standing strong, a sign that investors are betting on its fundamentals rather than short-term noise.
The split adds a layer of liquidity and accessibility that could keep demand buoyant.
For many, Adani Power isn’t just a stock; it’s a bet on India’s rising power consumption and industrial growth, making it one of the sexiest plays in the sector today.
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