Adani Group market cap jumps by Rs 12,675 crore

NEW DELHI: Adani Group stocks posted gains on Friday, leading to an increase in its market capitalisation by Rs 12,675 crore.

The total market capitalisation 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 a 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 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 per cent to Rs 330.25, taking its market cap to Rs 1.27 lakh crore. Adani Green Energy's shares gained 1.94 per cent with its market cap rising to Rs 1.49 lakh crore, while Adani Energy Solutions gained 1.59 per cent 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 per cent to Rs 2,450.05, and its market capitalisation increased to Rs 2.79 lakh crore. Shares of Adani Ports also moved up by 0.92 per cent.

The boost to the Adani group stocks comes as the market recognises 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, EBITDA of Adani listed portfolio for Q1 FY2024 grew by 42 per cent year on year to Rs 23,532 crore. The core infrastructure EBITDA registered a growth of 34 per cent Y-o-Y to Rs 20,233 crore (86 per cent of portfolio).

AEL Infrastructure Businesses registered EBITDA growth of 96 per cent Y-o-Y to Rs 1,718 crore (7 per cent of portfolio). Cement business reported strong recovery on Q-o-Q basis with cost optimization and operational synergies leading to improvement in margins.

In FY23, the Adani Group reported a 36 per cent 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.