Bull Of Adani Group Since Hindenburg Fiasco: Adani Power Hits All-Time High; What's Driving The Stock?

Adani Power Ltd announced a decarbonization initiative, stating its plans to co-fire green ammonia at its 330MW power plant in Mundra. The development sparked a surge of over 5% in the company's shares during early trade on November 29.

The Mundra plant, India's largest private sector power facility, is set to start its operations by incorporating up to 20% green ammonia in the boiler of a conventional coal-fired 330MW Unit.

The power company has collaborated with Japan's IHI and Kowa with an aim to not only execute the pilot project but also assess the potential for expanding this green initiative across other units and stations. The collaborative effort is conducted under the Japan-India Clean Energy Partnership (CEP), which focuses on energy security, carbon neutrality, and economic growth.

The Mundra plant's selection for this project marks it as the first location outside of Japan to partake in the green initiative. Green ammonia, derived from green hydrogen through electrolysis using renewable energy, offers a carbon-neutral alternative to traditional fossil fuels. Its combustion process does not produce carbon dioxide, contributing to a cleaner and more sustainable energy future.

Anil Sardana, the Managing Director of Adani Power, spoke about the partnership with IHI and Kawa. "We are happy to partner with IHI and Kawa for blending green ammonia for our Mundra plant, which will reduce carbon-dioxide emissions," he stated.

At the time of writing, Adani Power's stock were steady at Rs 446 per share with a market cap of over Rs 1.71 lakh crore. In the early trade, the stock touched a fresh lifetime high of Rs 470 apiece on BSE.

Adani Power is a beacon of success compared to its sibling stocks who recorded erosion of billions of dollars of wealth during the first quarter of 2023, a shockwave that was escalated by the bombshell report of US short seller Hindenburg in late January. The stock has given positive returns of over 47% on a year-to-date basis and has gained nearly 33% in the last year.

The stock stands out as one of the two Adani Group stocks delivering positive returns to investors on both a year-to-date and a year-on-year basis. Not just that Adani Power is the only stock in the port-to-power empire which has surged in double digits this year. The only other stock recording gains on a year-to-date basis is Adani Ports & SEZ.

Adani Power's stock has seen a remarkable climb, skyrocketing more than 70% since the January 24 release of the controversial Hindenburg report.

8 Out of 10 Adani stocks are still on recovery from the aftermath of Hindenburg report. Adani Power is not one of them because exceptional performance in 2023 so far, followed by Adani Ports.