Adani Group’s total market capitalisation surpassed the Rs 11 trillion mark on Friday, underpinned by consistent value buying from both domestic and international investors.
The conglomerate, with interests ranging from ports to power, added Rs 7,039 crore to its market cap on Friday, bringing the total market value of its 10 listed companies to Rs 11.02 trillion, up from Rs 10.96 trillion on Thursday.
Adani Group stocks have recovered significantly from their post Hindenburg lows adding nearly Rs 5 trillion in market cap since early March 2023.
Analysts attribute the stock’s climb to continued buying interest in the face of the group’s strategic focus, initiatives on fundraising, and continued execution on development in its infrastructure and power businesses amid rising demand for energy.
“Investors are recognizing the value in Adani’s diversified business model, particularly as the group doubles down on fundraising efforts and project execution. Power is expected to be a major theme in the coming years as India’s demand for energy increases significantly on the back of strong domestic economic growth. We expect this trend to translate into bullish sentiment over the coming months for Adani Group stocks,” said an analyst at a major domestic brokerage.
Shares of Adani Power were in the limelight surging 2.88 per cent on Friday, touching a 10-month high of Rs 369.15, and surpassing levels as on November 11, 2022. The stock witnessed robust buying interest and the rally is reflective of the positive sentiment around the company’s operational performance and strategic initiatives.
On the trading front, four more Adani group entities posted gains on Friday including Adani Enterprises, Adani Ports and SEZ, and Adani Wilmar.
Adani Ports and SEZ saw 1.86 per cent uptick in its market value pushing its market price to Rs 825, and its market value to over Rs 1.78 trillion mark. The company has been setting new records in cargo handling lately. Adani Enterprises, the group’s flagship company, rose 0.39 per cent on Friday to close at Rs 2,519.30, while its valuation crossed the Rs 2.87 trillion mark.
Recent strides in the group’s valuation mirror its ongoing initiatives to bolster investor confidence. Fundraising activities with global partners, like GQG Partners, and other potential stakeholders are reportedly underway. Over the past six months, GQG Partners has invested over $4 billion into five Adani Group companies.
The first-quarter financial performance of Adani’s listed firms also show a strong growth in Q1FY24. The EBITDA of Adani’s listed portfolio for Q1 FY2024 grew by 42 per cent Y-o-Y to Rs 23,532 crore.
The core infrastructure EBITDA registered a growth of 34 per cent Y-o-Y to Rs 20,233 crore, which comprises 86 per cent of the Adani portfolio.
AEL’s infrastructure business registered an EBITDA growth of 96 per cent Y-o-Y to Rs 1,718 crore, which comprises 7 per cent of its portfolio.
The group is aiming for an EBITDA of over Rs 90,000 crore in the next two-three years.
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