Adani Power and Tata Power in a race to cross ₹1 lakh crore market value

Adani Power and Tata Power in a race to cross ₹1 lakh crore market value
  • Two largest power generating companies are about to cross a major milestone together.
  • Adani Power and Tata Power are about to cross ₹1 lakh crore market capitalisation on stock exchanges followed by strong rally in shares.
  • Shares of Adani Power have surged 126% in 2022 so far while Tata Power went up by 27% during the period.
Two of India’s largest power generating companies -- Adani Power and Tata Power -- are about to cross a major milestone of crossing ₹1 lakh crore market capitalisation together.

Coincidently, both Adani and Tata Group company are hovering around ₹90,000 crore market capitalisation today, April 11.

This was the result of a strong surge in shares of both the companies in the last one year. Investors have more than doubled their money in these stocks.
Adani Power and Tata Power in a race to cross ₹1 lakh crore market value
The constant rally in the shares is about to push the market capitalisation of the companies to ₹1 trillion.

Power stocks continue to outshine everything that is out there. We are seeing outperformance of these stocks against their own sector, competitors, Benchmark and relatively everything. Having said that, the beauty of investing in diversified instruments is what we are seeing in power stocks. When we construct a portfolio, Everyone has an innate trust in big names that can add value to a portfolio and can be held for the long term blindly. Having said that, It is the outperformance or rather contribution of Mid and small-cap stocks that add the X factor to the performance of a portfolio. Midcap stocks such as $TATAPOWER.NSE $ADANIPOWER.NSE are such examples that can be seen.TataPower is up 290+% since its breakout in Dec20 while Adanipower is up 240%. The synchronization of money flow in such stocks back in 2020 was pretty much evident. This also reiterates the fact that Old outperformed will give way to the new leaders after a decent correction in the market. Charts attached.

— (@Chartistician) April 11, 2022

In recent times, Adani Power share prices have surged after a Supreme Court order came in favour of the company wherein the court asked some state-run distribution companies in Rajasthan to pay Adani Power its dues of ₹30.48 billion.

Besides, it is expected that the company will report a strong earnings on high power consumption as lockdowns across states have eased this year.

Meanwhile, Tata Power has surged exceptionally in the last one year as investors are keen with the company’s electric vehicle charging space.

The company’s efforts in the electric vehicle charging segment have taken investor’s attention. It is building home charging installations in all cities to support Tata Motors' EV customers.

Reportedly, recently Saudi Arabia’s Public Investment Fund (PIF) is looking to buy a stake in Tata Power’s green energy, power transmission and distribution businesses.

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