This Mid Cap Stock With Strong Financials Gave Over 800% Return in 5 years, Should You Buy?

Adani Power Limited has emerged a top performing stock in a volatile market when many stocks witnessed downfall. Adani Power not only helped in doubling investors' wealth but performed well when markets nosedived. Many factors have pushed the stock higher in 2022. Demand for electricity witnessed a growth in India as a result of growing economy and severe heatwave especially in Northern and Western part of the country.

The stock witnessed a growth after Morgan Stanley Capital International or MSCI comprised the stock in its global index. Adani involved in the acquisition of Essar Power MP which gave a boost to the stock. Also, It signed yet another agreements to completely acquire Support Properties and Eternus Real Estate, leading infrastructure firms. Let us find other key factors that pushed the stock higher:

1. Stock Outlook Of Adani Power Limited

The stock has gained more than 2% today to close at 272.05%. With today's robust surge, the stock is now 26% away from its 52-week high of Rs 344 apiece. The 52-week low of the stock is Rs 70 apiece.

Current Market Price	Rs 272
52-Week High	Rs 344
52-Week Low	Rs 70
P/E	21.37
Sector P/E	12.69
EPS	12.73
1 Year Return	103%
5 year Return	887.48%

2. Key Positives

Adani Power Limited is a company with strong financials. It has given good profit growth of 34.13% CAGR in the last 5 years. Its weak point is its high debt. The company reported a major jump in its profit after tax or PAT at Rs 4645 crore. The consolidated total revenue jumped 93% YoY to Rs 13,308 crore in Q 4 as against Rs 6902 crore in the similar quarter last year.

Should You Buy? Amid its strong financials and soaring revenue, investors can invest in the stock and generate profit.

3. About Adani Power Limited

Adani Power Limited (APL), a part of the diversified Adani Group, is the largest private thermal power producer in India, according to its official website. Adani Power has a power generation capacity of 12,450 MW comprising thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh and a 40 MW solar power project in Gujarat. The market capitalization of the company is Rs 104,928 crore.

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. The author is not holding a portfolio in any of the above-mentioned stocks.