The Adani Group, the ports-to-power conglomerate, continued to bolster its market position on Friday as the group saw significant gains, particularly in its energy portfolio, leading to an increase in its market capitalisation by Rs 12,675 crore.
The total market capitalisation of the 10 listed Adani Group companies reached Rs 10.62 trillion, up from Rs 10.49 trillion at the previous close.
A market strategist at a leading domestic brokerage house stated, "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 shadows, 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 strategist added.
The Adani Group's power portfolio, in particular, showed strong gains, reflecting renewed domestic investor interest. Adani Power's shares increased by 2.79 per cent to Rs 330.25, taking its market cap to Rs 127,375 crore.
Adani Green Energy's shares gained 1.94 percent with its market cap rising to Rs 149,960 crore. Adani Energy Solutions gained 1.59 per cent to Rs 92,017 crore in market cap.
Adani Enterprises, the conglomerate's flagship, saw its share price rise by 1.27 per cent to Rs 2,450.05, and its market capitalisation increased to Rs 279,306 crore. Shares of Adani Ports also moved up by 0.92 per cent.
The stock moves come amidst broader market recognition of the Adani Group's fundamental strengths and a diminishing focus on reports such as the Hindenburg and the recent OCCRP report. The adani-group">Adani group has rejected these reports. According to the media, the regulator has already examined the funds named by OCCRP in the Adani probe. Despite these external challenges and media scrutiny, the Group's financial numbers are robust, reflecting operational strength and resilience.
In Q1FY24, EBITDA of Adani's listed portfolio for Q1 FY2024 grew by 42 per cent Y-o-Y to Rs 23,532 cr. The core infrastructure EBITDA registered a growth of 34 per cent Y-o-Y to Rs 20,233 cr (86 per cent of the portfolio). AEL Infrastructure Businesses registered EBITDA growth of 96 per cent Y-o-Y to Rs 1,718 cr (7 per cent of Portfolio). Cement business reported strong recovery on a Q-o-Q basis with cost optimization and operational synergies leading to improvement in margins − EBITDA per ton increased from Rs 1,079 / ton in the March 2023 quarter to Rs 1,253 / ton in the June 2024 quarter.
In FY23, the Adani Group reported a 36 per cent year-on-year rise in EBITDA to Rs 57,219 crore, further highlighting its capability to deliver robust profitability.
GQG Partners, a US-based investment entity, has been notable for its consistent investments in the Adani Group over recent months. The firm initiated a Rs 1.87 billion dollars investment in March, added another Rs 500 million dollars in May, and acquired a further 1 billion dollars of Adani stocks in June. GQG Partners has been consistently increasing its stakes in Group companies.
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