Adani Enterprises Ltd shares are up today after the flagship arm of Gautam Adani's Adani Group announced that it has received a Letter of Award (LoA) from Solar Energy Corporation of India to set up manufacturing capacity for electrolysers under the Strategic Interventions for Green Hydrogen Transition Scheme.
An incentive of Rs 293.78 crore would be distributed over a five-year period beginning with the scheduled commissioning date.
Adani Enterprises' shares closed 0.77% higher on Friday at Rs 3104.25, compared to the previous close of Rs 3080.45 on the BSE. Adani Enterprises' stock began higher on the BSE at Rs 3099. Adani Enterprises' market capitalization increased to Rs 3.53 lakh crore. On the BSE, a total of 0.89 lakh shares were traded, resulting in a turnover of Rs 27.59 crore.
The one-year beta of Adani Enterprises stock is 0.7, showing very low volatility throughout the time.
In terms of technicals, Adani Enterprises' relative strength index (RSI) is 70, indicating that it is neither overbought nor oversold. The stock is trading above its 10-, 20-, 50-, 100-, 150-, and 200-day moving averages.
The stock has gained 6.42 percent this year but lost 14.84% over the last year.
Under the Strategic Interventions for Green Hydrogen Transition Scheme, the company is required to build an annual capacity of 198.5 megawatts.
The facility must be operational within 30 months of the date of the order letter, and the maximum incentive available over five years from the date of commissioning is Rs 293.78 crore.
Adani New Industries, the company's subsidiary, will build the alkaline electrolyzer factory utilizing indigenous technology.
Adani Enterprises increased its overall net profit by 44% year on year (YoY) to Rs 674 crore for the quarter ending June 2023, up from Rs 469 crore the previous year. However, revenue from operations plummeted 38% in Q1 to Rs 25,438 crore, compared to Rs 40,844 crore in the previous quarter. The decline in revenue was due to a drop in coal prices.
