Adani Green share price surges over 6% in early trade. What’s driving the rally?

Shares of Adani Green Energy surged more than 6% in early trade on Wednesday, touching an intraday high of Rs 1,080 on the Bombay Stock Exchange (BSE).

At 10:20 a.m., the stock was trading 3.28% higher at Rs 1,040.60, continuing its positive momentum after jumping as much as 19% in the previous session, making it the top gainer among Adani Group companies. Today’s rally follows the company’s announcement that its subsidiary, Adani Renewable Energy Forty Eight Limited, has commissioned a 57.2 MW wind power component of its hybrid project at Khavda, Gujarat.

According to a regulatory filing, this development brings Adani Green Energy’s total operational renewable capacity to 11,666.1 MW. Power generation from the new plant is expected to commence on January 15, 2025, pending necessary clearances.

This project is part of the company’s broader strategy to expand its renewable energy portfolio. In December, Adani Green Energy launched a wholly owned subsidiary, Adani Green Energy Sixty-Eight Limited (AGE68L), aimed at generating, distributing, and supplying power using wind, solar, and other renewable energy sources.

Financially, the company reported robust earnings in the second quarter of FY25, with a net profit of Rs 515 crore, marking a 39% year-on-year growth. Total income rose by 30.4% to Rs 3,376 crore, though expenses also increased by 31.3% to Rs 2,837 crore.

Despite these gains, Adani Green Energy’s stock has declined by 38% over the past year. Its relative strength index (RSI) currently stands at 42.9, suggesting neutral momentum, as per Trendlyne data. The stock’s moving average convergence divergence (MACD) is at -75.3, signaling bearish sentiment. Additionally, shares are trading below key moving averages, including the 20-day, 50-day, and 200-day SMAs.

Analysts maintain a positive outlook, with the average target price pegged at Rs 1,966, implying a potential upside of 95%. Of the four analysts covering the stock, the consensus recommendation is a ‘Buy.’