A Stock to watch – Adani Power

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Why Adani Power share price is skyrocketing today — explained

Adani Power share price is in uptrend and it may go up to ₹488 apiece levels in short term, believe stock market experts.

Adani Power share price: Gautam Adani has announced to start power supply to Bangladesh from December 2022

Adani Power share price has been in uptrend for the last one year, delivering multibagger return. The Adani Group stock hit upper circuit in Wednesday’s early deals after Gautam Adani’s recent tweet of committed to supplying power to Bangladesh from December 2022. The stock has risen by near ₹390 to ₹416 apiece levels on NSE in last two days, logging near 6.50 per cent rise in two straight sessions. Adani Power share price today opened downside but went on to hit intraday high of ₹415.7 apiece.

According to stock market experts, fundamentals of Adani Power are favourable as demand supply constraint is in favour of the power company and market is expecting better quarterly numbers from the company in upcoming results. However, recent reason for rise in Adani Power share price is Gautam Adani’s announcement to initiate power supply to Bangladesh from December 2022. They said that the stock has made bullish engulfing pattern on daily chart, which signals further upside in this multibagger Adani group stock.

Speaking on the recent reason for rise in Adani Power share price, analyst  said, “Adani Power is expected to give better quarterly number due to demand-supply constraint in power supply business. However, the recent reason for Adani Power share price rise is Gautam Adani’s tweet in which he has announced to supply power to Bangladesh from this December. This has gone down well among stock market bulls and they are buying in bulk with an expectation that the stock may continue to give upside movement in short to medium term.”

Expected further upside in Adani Power shares, an analyst said, “Adani Power share has made bullish engulfing pattern on daily chart pattern that means the stock is expected to give sharp upside movement in short term. Those who have this stock in their portfolio are advised to maintain stop loss at ₹385 and hold the counter for the target of ₹444 and ₹488 respectively.”

On 5th September, 2022, Indian billionaire and Adani Group Chairman Gautam Adani made an announcement about power supply initiation to Bangladesh from December 2022 from his official tweeter handle citing, “It is an honour to have met Hon PM of Bangladesh Sheikh Hasina in Delhi. Her vision for Bangladesh is inspirational and stunningly bold. We are committed to commissioning our 1600 MW Godda Power Project and dedicated transmission line to Bangladesh by Bijoy Dibosh, 16 Dec 2022.

6 common mistakes to avoid in a rising stock market :

The stock markets have really shown considerable resilience and bounced back thanks to the economic turn around and FIIs coming back to Indian markets. So investors are by and large excited over this upsurge despite some small corrections. Share market has given extra-ordinary returns to those who are smart and careful investors, much more than what other investments can . So it’s time to watch the market and do some bottom-fishing for long term gains.But informed investment strategy is a pre-requisite for unloading your hard-earned money. Please follow the tips given for safe investments.

Analysts expect the second half of the year to improve due to the easing consumer inflation index and softening commodity prices that could ease the pressure on margins. Easing inflation will encourage retail investors to stay optimistic about economic recovery.FIIs have pumped in almost Rs 16,860 crores (approximately US$ 2.1 billion) between 1st August 2022 and 18th August 2022.

The stock markets rose after four months of downward movement. The Nifty closed at 17,965 and Sensex closed at 60,326 on 18th August 2022. During the last month, the Nifty Midcap 100 has gone up by around 10% while the Nifty Smallcap 100 has gone up by around 7 percent.

Bear in mind that they had pulled out Rs 2,89,970 crores (approximately US$ 36 billion) during this calendar year between January 2022 and July 2022.

According to our research, 42% of companies that have reported their Q1 FY23 earnings so far have outperformed by exceeding street expectations.

This positive rally doesn’t mean one must forget everything and let the allure of high returns derail their plans committing mistakes that could put a brake on their wealth creation efforts.  It is vital to keep a check when the markets are down. It is even more crucial to do it when the markets surge.

Avoid making these six common mistakes

1. Investing in Bulk due to FOMO
When the markets are rising, investors experience the fear of missing out (FOMO). Such investors believe it is the right time to earn some more quickly. Bulk investing is not the right approach for one to follow. Instead, invest in a staggered manner, and diversify across asset classes so that it helps to meet financial goals. One should consider staying invested for the longer term if wealth creation is the goal.

2. Exiting Quality Stocks
In a rising market, good-quality stocks could seem overvalued. Investors tend to sell such stocks and invest in stocks trading at lower valuations since the markets are rising. Doing so can be a mistake and hamper wealth creation eventually. Some of the biggest wealth creators in the Indian stock markets have always been highly valued due to being MNCs or having highly credible promoters or enjoying an increase in free cash flows year on year. So,  .. if you have invested in fundamentally sound stocks, don’t exit unless there is something inherently wrong with the business.

3. Following the Herd
Herd mentality is a common investing bias that becomes more apparent when the market soars. Consider the financial goals and study the stocks instead of investing on the basis of Whatsapp forwards or tips. Don’t be impulsive; pause, research, understand if it meets the needs, and then decide. Consider taking advice from a financial advisor if needed.

4. Ignoring your Risk Appetite and Financial Goals
Investments are based on risk appetite and financial goals. Investors may ignore risks when markets are rising. Even risk-averse investors may believe in the euphoria and disregard their risk profiles. Investors must be cognizant of their risk-taking capabilities and shouldn’t go overboard while investing. For instance, one may be tempted to invest one’s emergency funds or money saved  for achieving a specific financial goal. For cautious investors, sleepless nights at the slightest hint of volatility may not be far away. It could mean making mistakes in investing decisions and unbalancing the asset allocation.
5. Getting influenced by popular individuals
Today there is no dearth of popular individuals sharing their views on which stocks should be purchased or sold. They may offer stock recommendations over social media and messaging platforms. Some of them may not even have the relevant certifications. Hence, one may want to be careful while buying shares only on the basis of recommendations provided by such individuals.
One may also find renowned fund managers sharing their views on stocks or sectors that are bound to do well in a rising market. However, they could have completely different investment objectives and risk appetites which would not be aligned with those of retail investors.
6. Focusing on the next big theme or trend
Seasoned investors may be adept at changing their strategies and would be able to identify the next theme or trend that could enjoy a bull run. But retail investors would be advised to maintain a diversified profile unless they have a credible investment advisor guiding them. For instance, investors invested in IT and Pharma stocks that grew as the markets recovered after COVID-19. They believed the exponential growth phase  would continue. However, when the bull run gave way to corrections, they lost money. An investor must diversify and invest in companies with prospects even when the markets are high.

Remember, markets always perform in cycles. Periods of volatility are followed by euphoric highs which can be again dented by falling markets. An investor should ideally remain invested in fundamentally strong stocks across these business cycles to create wealth over the long term. Opportunities can be discovered by conducting thorough research in both bull and bear markets.
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One share now ₹50,000. Multibagger stock hits new milestone!!!

Shares of Page Industries rallied to hit the ₹50,000 apiece mark for the first time as the stock surged to life time level of ₹50,338 per share on the BSE in Friday’s early deals after the apparel manufacturer reported a multi-fold jump in the first quarter net profit. 

Page Industries Ltd on Thursday reported a multi-fold increase in its net profit to ₹207 crore for the first quarter ended June 2022 as compared to ₹10.9 crore during the April-June period a year ago. Its revenue from operations during the quarter under review was ₹1,341 crore, up over two-fold compared to a lower base of the pandemic-impacted Q1 FY22.

“From a medium-to-long term perspective, we believe Page does have (operating) margin expansion potential with Page’s EBITDA margins having remained in the narrow range of 18-21% for the last 10+ years. We believe Page has front-ended investments in new avenues,” said brokerage firm ICICI Securities while maintaining Add rating on Page Industries shares with a target price of ₹52,000.

Page Industries Q1FY23 topline was a healthy beat to street estimates, as per Axis Securities as revenue was led by strong volume growth. The company’s gross margins were below expectations on account of higher inflation in cotton and packing materials. 

“PAGE saw increased momentum in sales across all its product categories driven by portfolio enhancement and distribution expansion. Total MBO coverage is now at 113,715 and the EBO network stands at 1,144 in Q1FY22. All channels and supply chains are back to normal and expect a continued robust demand outlook in FY23,” said Axis Securities with Hold rating on the stock and target price of ₹51,900.

Page Industries is involved in manufacturing and retailing innerwear, and has the exclusive licensee of Jockey International in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan, and the UAE. It is also the exclusive licensee of Speedo International for the Indian market. The multibagger stock has rallied more than 18110% in 15 years since its listing in March 2007 when it was trading around ₹270 per share level.

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