Market

Published: Feb 15, 2023
Updated: Feb 15, 2023

Comparing Tata Power and Adani Power: Which Stock is Poised for Short-Term Growth?

Investors often look for short-term opportunities in the stock market. In the Indian power sector, two major players are Tata Power and Adani Power. Both companies have shown varying performances in recent times and are currently trading at different price levels. In this article, we will take a closer look at Tata Power and Adani Power to determine which stock may offer better returns in the short term.

Tata Power Performance:

Tata Power reported a 91% YoY rise in its consolidated profit after tax for the quarter ending December 31, 2022 (Q3 FY23). The company posted a profit of Rs. 1,052 crore compared to Rs. 551.89 crore in the same quarter of the previous fiscal year. Despite this strong performance, the stock has fallen 31.91% from its one-year high of Rs. 298. Technical analysts suggest that there is no clear breakout or breakdown sign on the counter, and investors should wait and watch. However, a sustainable move beyond Rs. 215-217 could trigger a momentum that could push prices towards the Rs. 228-230 zone.

Adani Power Performance:

On the other hand, Adani Power reported a 96% decline in consolidated net profit for Q3 FY23. The company posted a profit of Rs. 8.77 crore compared to Rs. 218.49 crore in the same period a year ago. The stock has also taken a major hit recently after US-based short seller Hindenburg Research alleged the company of engaging in stock manipulation and accounting fraud. Although the Adani Group has refuted the claim as baseless, technical analysts suggest that traders should refrain from taking any positions in Adani Power. A daily close above Rs. 186 could lead to targets of Rs. 199-222 in the coming weeks, but the stock is considered a riskier bet given the recent news surrounding the Adani Group.

Choose the best one

In conclusion, both Tata Power and Adani Power have shown different performances in recent times. While Tata Power's stock has jumped 31.91% from its one-year high, Adani Power's counter has plummeted 62.04% from its 52-week high. Technical analysts suggest that Tata Power may offer better returns in the short term, but Adani Power may offer better returns in the future if the stock can close above Rs. 186. Ultimately, the decision to invest in either stock is up to the individual investor and should be based on their personal investment strategy and risk tolerance.