The Adanis are doing well in Dalal Street. Know why

Shares of Adani Power rose more than 4 percent on news that the company was the lowest bidder for three power transmission projects based in and around Chhattisgarh.

The winning bids helped the company's stock price recover from near 52-week lows. Adani Power added 1.20 rupees, or 4.1 percent, to quote at 29.15 rupees on the National Stock Exchange.

Adani Power's winning bids amounted to `132 crore rupees for Chhattisgarh A project. It bid `178 crore rupees for Chhattisgarh B project and 79 crore rupees for the Sipat project, according to data made available by the state government.

Adani Power edged out several players to win these deals by being the lowest bidder. Its bids were lower to the extent of 8 percent to 13 percent over other rivals, data showed. With these aggressive bids, Adani may have managed to get the contracts but the profitability of the contracts remains a question.

Adani Power has seen its market capitalisation slip 50 percent to 8,430 crore rupees over the past one year as investors moved away from the power sector.

(Image credit: Indiatimes)