Adani group stocks witnessed broad-based rally on Monday, rising up to 7% intraday amid slew of positive developments. The surge in Adani stocks was in sync with broader market, with benchmark indices BSE Sensex and NSE Nifty soaring up to 1.4%, led by index heavyweights Reliance Industries, Power Grid Corporation, Tata Motors, Larsen & Toubro, and Sun Pharmaceutical Industries.
Adani Enterprises, the flagship of billionaire Gautam Adani-led Adani group, was the top performer among peer companies with a 7% gain, followed by Adani Energy Solutions, Adani Power, Adani Ports, Adani Total Gas, and Adani Wilmar, which climbed up to 5%. Among others, ACC, Ambuja Cement and NDTV rose in the range of 1-4%. The combined market capitalisation of all 10 Adani group companies crossed ₹15.50 lakh crore in intraday trade today.
In a boost to Adani Enterprises (AEL), international brokerage firm Cantor Fitzgerald initiated coverage on the stock, with an "overweight" rating and price target of ₹4,368. “We believe AEL's current valuation is largely driven by three main segments: airports, roads, and its new energy ecosystem, which in our view, means investors are getting a free call option on the rest of AEL's business, which accounted for 85%+ of revenue in FY23 and includes many businesses that are in incubation phase and will materially contribute to financials over the coming years. As such, we believe risk/ reward is attractive at current levels,” the brokerage house says in a report.
Shares of Adani Green Energy (AGEL) rose 4% intraday after the company completed the funding for the entire $750 million Holdco Notes due on September 9, 2024, with the receipt of the funds under the preferential allotment of ₹9,350 crore ($1,125 million) to the promoters of AGEL. The repayment follows the successful equity capital raise of $1.425 billion (including $1.125 billion of preferential issuance by promoters and $300 million from TotalEnergies JV), demonstrating the promoter commitment to meet AGEL’s strategic priorities of achieving its target of 45 GW by 2030, it says in a release today.
Adani Energy Solutions shares rose 5% after it incorporated a wholly-owned subsidiary Adani Energy Solutions Step-Twelve Limited (AESSTL).
Meanwhile, shares of Adani Power rose over 3% after AdaniConnex (ACX), a 50:50 joint venture of Adani Group and EdgeConneX, signed a deal with Adani Power to acquire a 100% equity stake in two wholly owned subsidiaries of the company - Aviceda Infra Park Limited (AIPL); and Innovant Buildwell Private Limited (IBPL).
Investors will keep an eye on Adani group stocks as most of them are lined up to release their December quarter earnings. While Adani Power and Adani Green Energy have unveiled their Q3 results, Adani Wilmar and Ambuja Cements are set to announce their financial numbers on January 31, followed by Adani Enterprises and Adani Ports on February 1.
In the recent past, all 10 Adani group stocks have seen a strong uptrend, with the combined market capitalisation of the conglomerate nearly doubled from ₹7 lakh crore level touched in March last year in the aftermath of seller hedge fund Hindenburg Research’s allegations against the conglomerate. While half of the group listed entities are yet to reach pre-Hindenburg levels, AEL, Adani Total Gas, Adani Energy, Adani Green, and NDTV have touched their 52-week highs this month.
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