Adani Group records significant gains
Adani Group stocks posted gains on Friday, leading to an increase in its market capitalization by Rs.12,675 crore.
The total market capitalization of the 10 listed Adani Group companies touched Rs.10.62 trillion, up from Rs.10.49 trillion in the previous closing.
An analyst said, “The Adani Group’s recent surge, especially in its power portfolio, exemplifies the renewed confidence and focus of the investor community on its potential instead. This interest isn’t merely based on current performance but is also due to the Group’s robust financials and strategic decision-making.
“Even with recent media reports casting a shadow, the market is largely brushing aside the negatives and pivoting to the future growth potential of the conglomerate. The Group’s resilience and adaptability in these challenging times have set them apart.”
The Adani Group’s power portfolio posted strong gains on renewed domestic investor interest.
Adani Power‘s shares increased by 2.79 percent to Rs.330.25, taking its market cap to Rs.1.27 lakh crore. Adani Green Energy‘s shares gained 1.94 percent with its market cap rising to Rs.1.49 lakh crore, while Adani Energy Solutions gained 1.59 percent to post a market cap of Rs.92,017 crore.
Adani Enterprises, the group’s flagship company, saw its share price rise by 1.27 percent to Rs.2,450.05, and its market capitalization increased to Rs.2.79 lakh crore. Shares of Adani Ports also moved up by 0.92 percent.
The boost to the Adani group stocks comes as the market recognizes the group’s fundamental strengths and brushed aside reports such as the Hindenburg report and the recent OCCRP report. The Adani Group has rejected these reports’ claims.
As per reports, the regulator has already examined the funds named by OCCRP in the Adani probe. Despite these external challenges, the Group’s financial numbers are robust, reflecting operational strength and resilience.
In Q1FY24, the EBITDA of Adani’s listed portfolio for Q1 FY2024 grew by 42 percent year on year to Rs.23,532 crore. The core infrastructure EBITDA registered a growth of 34 percent Y-o-Y to Rs.20,233 crore (86 percent of the portfolio).
AEL Infrastructure Businesses registered EBITDA growth of 96 percent Y-o-Y to Rs.1,718 crore (7 percent of portfolio). Cement business reported strong recovery on a Q-o-Q basis with cost optimization and operational synergies leading to improvement in margins.
In FY23, the Adani Group reported a 36 percent year-on-year rise in EBITDA to Rs.57,219 crore, delivering robust profitability.
GQG Partners, a US-based investment entity, has made investments in the Adani Group over recent months. The firm initiated with a $1.87 billion investment in March, added another $500 million in May, and acquired a further $1 billion of Adani stocks in June. GQG Partners has been consistently increasing its stakes in Group companies.
[With Inputs from IANS]
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