Adani Group stocks saw a major rise, with most reaching their highest prices in a year on Monday. This jump came after exit polls suggested a strong victory for Prime Minister Narendra Modi’s government for the third time. Positive sentiments were also boosted by a recent upbeat report from Jefferies on the Adani Group.
Adani Power surged 17.7 percent to ₹890.40, hitting a 52-week high. Adani Green Energy climbed 13.5 percent to ₹2173.65, also a year high. Adani Ports hit its upper trading limit of 10 percent at ₹1581.45, marking its 52-week high. Adani Enterprises rose 9.7 percent to a 52-week high of ₹3,743.
Other Adani stocks also saw gains, though not reaching their year highs. Adani Total Gas increased by 15.3 percent to ₹1197.95, just shy of its 52-week high of ₹1,259.90 from October 26, 2023. Adani Energy Solutions went up 11.2 percent to ₹1,249, near its year high of ₹1,250 from January 3, 2024. Adani Wilmar rose 7.3 percent to ₹382, below its peak of ₹446.30 from June 2, 2023.
ACC and Ambuja Cements also jumped around 6.5 percent each during the day.
Market Value
The total market value of all 10 listed Adani companies increased by nearly ₹1.4 lakh crore, bringing their combined market cap to ₹19.24 lakh crore.
The positive sentiment came from strong exit polls favoring the Modi government and a Jefferies report. The report noted the Adani Group’s recovery from last year’s losses due to the Hindenburg report, which accused them of financial wrongdoing—a claim the Adani Group has denied. Despite the controversy, the stocks were initially hit hard.
In the 2023–24 financial year, the Adani Group worked on reducing its debt and lowering the founders’ share pledge. According to Jefferies, the group’s profit after tax in FY24 jumped 55 percent to ₹30,768 crore.
The report also mentioned that the group’s net debt remained stable at ₹2.2 lakh crore in 2023–24, down slightly from ₹2.3 lakh crore the previous year.
Jefferies gave a ‘buy’ rating to Adani Enterprises (target price: ₹3,800), Adani Ports (target price: ₹1,640), and Adani Energy Solutions (target price: ₹1,365).
Adani Enterprises is expanding its manufacturing capacity to start green hydrogen production by 2026–27, and the Navi Mumbai Airport is expected to open by the end of FY 2024–25. Adani Ports has been performing well, thanks to a new freight corridor at Mundra, boosting logistics growth.
For Adani Energy Solutions, Jefferies highlighted effective debt management and refinancing efforts to align debt with asset lifetimes.
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