ATL becomes 2nd Adani firm to cross ₹4 lakh cr m-cap

The Adani group power transmission company Adani Transmission Ltd. hit the market capitalisation of ₹4 lakh crore for the first time amid a continuous rally in its shares. This year alone, Adani Transmission's stock has risen 107.24%. The stock is rising for four consecutive sessions and touched an all-time high of ₹3,608.95 today.

With this, Adani Transmission has become the second Adani Group company to achieve the ₹4 lakh-crore milestone (₹4,00,049.14 crore) after Adani Green Energy, which crossed this m-cap earlier this year.

The Adani Transmission stock is currently trading at ₹3,583.20, up 0.05% or 6 points, on the Bombay Stock Exchange (BSE).

The stock opened gap-up today at ₹3,595 as compared to the previous session close of ₹3,581.60. The stock has moved in line with the sector, which is up 1.24% today, shows the Markets Mojo data. The benchmark Sensex is also up 0.49% today amid mixed cues from global equities. Adani Transmission is trading higher than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

Adani Transmission's profit for the April-June quarter stood at ₹168 crore, which was not comparable YoY on account of ₹288 crore one-off income in Q1 FY22 and adverse forex movement (MTM) of ₹185 crore vs ₹70 crore in the corresponding quarter. The company's consolidated revenue stood at ₹3,049 crore, up 22% YoY, while operational EBITDA grew 10% to ₹1,213 crore.

The country’s largest private transmission company, with a cumulative transmission network of 18,795 ckm, operationalised 372 ckm transmission in Q1 FY22 alone.

Apart from Adani Transmission, other domestic companies that have crossed the ₹4 lakh crore m-cap mark are Reliance Industries, TCS, HDFC Bank, Infosys, HUL, ICICI Bank, LIC, HDFC, SBI, Bajaj Finance, Bharti Airtel, Kotak Mahindra Bank and ITC.

Gautam Adani, the Gujarat-based tycoon, has been on an acquisition spree after the stocks of the listed companies of the ports-to-power conglomerate boosted his fortunes.

Adani Transmission Ltd. in June had signed definitive agreements with Essar Power Ltd. for acquiring 673 circuit kilometres of operational inter-state transmission project for ₹1,913 crore. The target asset is an operational 400 kV inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh with line length of 673 ckt kms.

Adani also acquired a 50% stake in Bengaluru-based General Aeronautics Pvt. Ltd in June. Before that, the group forayed into healthcare by incorporating Adani Health Ventures (AHVL).

Last week, Adani Group announced it will invest ₹57,575 crore to set up an alumina refinery and an iron ore project in mineral-rich Odisha. The company says these projects will generate 9,300 direct jobs and open up tens of thousands of indirect employment opportunities in Odisha.

Besides, the Adani group has mega plans to tap into the green energy industry. In his shareholder address during the annual meeting last month, Adani said the group is investing around $70 billion in facilitating India’s green transition.