This stock has turned Rs 1 lakh investment into Rs 3.63 lakh in just one year

Source: cnbctv18.com

Adani Power has been one of the major wealth creators in the last one year. The stock, which was trading at around Rs 17 per share in June 2018, surged over 260 percent, to trade at around Rs 63 per share currently.

To put it in perspective, an investment of Rs 1 lakh a year ago would have returned Rs 3.63 lakh today. The stock has risen 34 percent in 2019 as compared to a 7 percent rise in the Sensex.

Among its peers, NTPC gained 1 percent in the last 1 year, while PowerGrid rose 11 percent. Meanwhile, Tata Power and Reliance Infra fell 8 percent and 88 percent, respectively.

Recently, Adani Power entered into a definitive agreement to acquire a 1,370-megawatt thermal power plant backed by debt-laden GMR Infrastructure. In a statement, GMR Infrastructure said it will sell its entire 47.62 percent stake in GMR Chhattisgarh Energy (GCEL), held by its wholly-owned subsidiary, GMR Generation Assets Limited (GGAL).

Following the transaction, Adani Power will own 100 percent in the unit as the remaining 52.38 percent stake is bought from the lenders led by Axis Bank.

For Q4, Adani Power reported a consolidated net profit of Rs 634.64 crore mainly on the back of higher revenues. It had posted a consolidated net loss of Rs 653.25 crore in the same period previous fiscal, the company said in a BSE filing.

According to the filing, the total income of the firm rose to Rs 8,077.89 crore in the March quarter, from Rs 4,161.19 crore a year ago. The company’s consolidated net loss for 2018-19 narrowed to Rs 984.40 crore from Rs 2,102.95 crore in the previous fiscal.