Adani Group stocks soared today, driven by positive news that boosted demand for the shares. Leading the way was Adani Power, which rose by 10%, closing at ₹776.40 and hitting a new all-time high of ₹797 per share.
Adani Total Gas also performed well, climbing 9.6% to settle at ₹1,047 per share. Other Adani Group stocks, including Adani Enterprises, Adani Green Energy, Adani Ports & Special Economic Zone, Adani Wilmar, Adani Energy Solutions, ACC, Ambuja Cements, and NDTV, saw gains ranging from 2.5% to 9%.
This rally was fueled by positive comments from global brokerage firm Jefferies. The firm noted that the Adani Group has bounced back from the losses caused by the Hindenburg report and is now planning a USD 90 billion expansion over the next decade.
In January last year, U.S. short-seller Hindenburg accused the Adani Group of accounting fraud, stock price manipulation, and improper use of tax havens. The Adani Group has denied these allegations from the start.
The controversy significantly impacted the stocks, but the group took measures to restore investor confidence. These included raising fresh funds from equity, debt, and strategic investors and increasing the promoters’ stake in group companies. These efforts helped the stocks recover over the following months.
During the financial year 2023–24, the Adani Group focused on reducing its debt and lowering the founders’ share pledge. According to a report by Jefferies, the group’s total EBITDA grew 40% year-on-year to ₹660 billion. The group’s profit after tax (PAT) in FY24 jumped 55% to ₹30,768 crore.
The Jefferies report highlighted several key developments at the group level, including the commissioning of the ingot wafer unit. It also noted that the net debt at the group level (including eight companies and the debt related to the cement business acquisition) remained stable at ₹2.2 trillion in 2023–24, compared to ₹2.3 trillion the previous year.
Bullish Outlook
Jefferies has given a ‘buy’ rating to three group stocks: Adani Enterprises with a target price of ₹3,800 per share, Adani Ports with a target price of ₹1,640 per share, and Adani Energy Solutions with a target price of ₹1,365 per share.
The brokerage noted that Adani Enterprises is increasing its manufacturing capacity to start green hydrogen production by 2026–27. The Navi Mumbai Airport is expected to be operational by the fourth quarter of the current financial year 2024–25, and data center projects are also expanding.
Jefferies highlighted the sustained market share gains for Adani Ports and Special Economic Zone, thanks to the recent opening of the dedicated freight corridor at Mundra. This has significantly boosted the company’s performance. The brokerage sees the company’s logistics potential as a key driver of growth.
For Adani Energy Solutions, Jefferies emphasized a strategic approach to debt management, noting that the company is refinancing debt to align with the life of the respective assets at fixed rates wherever possible.
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