Adani Group Stocks Crosses 11 Lakh Crore Rupees On Rising Investor Confidence
Stocks of Adani group on Friday crossed Rs 11 trillion (11 lakh crore) in market cap, indicating a recovery after Hindenburg row, with a rise in investor confidence.
The group, headed by Gautam Adani, has witnessed a notable resurgence and is attributed to a sustained surge in value buying from both domestic and international investors.
The conglomerate, with interests ranging from ports to power, added ₹ 7,039 crore to its market cap, bringing the total market value of its 10 listed companies to ₹ 11.02 trillion, up from ₹ 10.96 trillion on Thursday, reports NDTV.
The Group stocks have recovered significantly from their post Hindenburg lows adding nearly ₹ 5 trillion in market cap since early March 2023.
The Group witnessed a significant loss in their stocks from January 2023 when Hindenburg Research LLC, a US based research firm, published a report presenting evidences against the Adani Group companies, that the conglomerate had engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.
The current trend of continued stock”s climb can be seen as 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”, NDTV quoted an analyst at a major domestic brokerage.
Four more Adani group entities also posted gains on Friday. It includes 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 ₹ 825, and its market value to over ₹ 1.78 trillion mark, says reports.
Adani Enterprises, the conglomerate”s flagship entity, rose by 0.39% to close at Rs 2,519.30, with its valuation surpassing Rs 2.87 trillion.
The first-quarter financial performance of Adani”s listed firms also show a strong growth in Q1FY24. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Adani”s listed portfolio for Q1 FY2024 grew by 42 per cent Y-o-Y to ₹ 23,532 crore.
According to the reports, the group is aiming for an EBITDA of over ₹ 90,000 crore in the next two-three years.
