Adani Transmission hits new high, surpasses ITC in market cap ranking

At 10:23 AM, Adani Transmission's market cap stood at Rs 3.88 trillion, followed by ITC (Rs 3.77 trillion), BSE data shows.

Adani Transmission, the power transmission company of Gautam Adani Group company, surpassed the fast moving consumer goods (FMCG) firm ITC in market capitalisation (m-cap) ranking as the stock hit a new high on the BSE in Wednesday's intra-day trade.

With a market cap of Rs 3.88 trillion, Adani Transmission stood at 12th position in the overall market cap ranking of the BSE listed companies at 10:23 AM, the exchange data shows. ITC slipped to 13th position with a market cap of Rs 3.77 trillion.

Shares of Adani Transmission hit a new high of Rs 3,529.35 as they gained 3 per cent on the BSE in the intra-day trade ahead of its April-June quarter (Q1FY23) results today.

In the past one week, Adani Transmission has rallied 16 per cent as compared to 3.9 per cent rise in the S&P BSE Sensex. On the other hand, ITC was up 0.38 per cent, while, Bharti Airtel gained 2 per cent during the same period.

In the past one month, the stock price of Adani Transmission has zoomed 45 per cent. In the last six months, the stock has soared 73 per cent, as against 1.4 per cent decline in the Sensex. Further, in past one year, the stock skyrocketed nearly 280 per cent, as compared to 8 per cent rise in the benchmark index.

Adani Transmission (ATL) is the transmission and distribution business arm of the Adani Group, one of India's largest business conglomerates. ATL is the country’s largest private transmission company with a cumulative transmission network of ~18,795 ckm, out of which ~14,279 ckm is operational and ~4,436 ckm is at various stages of construction. ATL also operates a distribution business serving about 3 million+ customers in Mumbai.

The Indian government is exploring delicensing the business of power distribution through draft amendments of the Electricity Act with the objective to enhance competition and consumer choice, creating attractive opportunities for the nimble, the company said in FY22 annual report.

ATL intends to enter the electricity distribution business in prominent cities and districts, leveraging the experience drawn from its Mumbai distribution network and service. The Company intends to emerge as a leading national electricity distribution utility, providing reliable and competitive supply through innovative service platforms.

Besides, the Government of India and various state governments have undertaken multiple initiatives to promote the adoption of electric vehicles. Adani Electricity Mumbai Limited (AEML) will promote the use of electric vehicles and charging infrastructure. AEML intends to facilitate the development of charging infrastructure through partnerships with bike operators (start-ups), cab aggregators and fleet operators, the company said.

Tech View

Target: Rs 3,747

Support: Rs 3,113

Shares of Adani Transmission have been on an upward trend since June 29. The stock has surged 45.6 per cent since then as against a 10 per cent gain in the benchmark S&P BSE Sensex. With today's upmove, the stock has decisively breached above the higher end of the Bollinger Band, placed at Rs 3,457.

If the stock manages to hold this level, we may see Rs 3,747 levels, followed by Rs 4,018, as per the yearly Fibonnaci charts. On the downside, Rs 3,457 remains the immediate support level, followed by trendline support of Rs 3,113. Along with the price-to-moving averages action, momentum oscillators, too, suggest bulls may remain in control of the counter.

The 14-day RSI indicator, for instance, has been in the overbought zone since July 11, yet the uptrend has been sustained. The MACD is also holding above the zero line. The slow Stochastic indicator, however, indicates mild slowdown in the rally.

(With inputs from Nikita Vashisht)