The Adani Group stocks have continued to see a surge for the second consecutive session on June 3rd, mirroring the bullish trend in the Indian equities. The increase in trading volumes contributed significantly, adding to the group’s market capitalization of over ₹2.6 lakh crores over the two sessions.
On Monday, Adani Enterprises jumped 7 percent, Adani Energy Solutions jumped 8 percent, Adani Ports and SEZ gained 9 percent, Adani Power was up 12 percent, Adani Green Energy 7 percent, Adani Total Gas rose 7 percent, Adani Wilmar was up 3.5 percent, Ambuja Cement gained 4 percent, ACC rose 3 percent while NDTV gained 5 percent.
Adani Power gained the most during the last two trading sessions, adding ₹470,000 crore to its total market capitalization, which now surpasses ₹3.3 lakh crore. Adani Enterprises did likewise, increasing its market capitalization to exceed Rs 4 lakh crore, an increase of more than ₹61,000 crore.
Adani Green and Adani Ports each saw an increase of over Rs 42,000 crore in market cap, while Adani Total Gas experienced a rise of over Rs 21,000 crore during the same period.
Ambuja Cement and Adani Energy also made significant strides adding over Rs 13,000 crore each to their respective total market caps. Total Market Cap of Adani group firms stands near Rs 19.65 lakh crore from Rs 17 lakh crore two days ago.
Adani’s Financials
In FY24, Adani Group’s EBITDA surged by 40% Year-on-Year growth to ₹66000 crore. This also came with the doubling of Adani Power’s EBITDA doubling, driven by capacity expansion, increased merchant contributions and lower imported coal prices.
“Adani Group’s Market Cap was hit by a short seller report in late FY23. During FY24, the group focused on containing debt, reducing founders’ share pledge. Total group EBITDA grew 40% YoY in FY24 (5yr CAGR: +27%), group raised fresh funds from equity/debt/strategic investors, promoter increased stake in group Cos and group Market Cap rebounded. The group is back on expansion spree and eyeing USD90bn capex over next decade. In the report, we discuss the group’s FY24 perf and way ahead“, Jefferies India said in its note.
Adani Ports’ EBITDA growth was propelled by a 24% increase in volumes. Adani Green recorded 33% EBITDA growth due to capacity expansion and higher CUF. Adani Energy Solutions saw a 16% EBITDA increase from new line additions, while Adani Total Gas achieved 27% YoY growth from volume increases and margin expansion due to lower gas costs. However, Adani Wilmar’s EBITDA declined YoY due to inventory losses and hedge misalignment caused by oil price fluctuations.
The Debt of the group stayed at ₹2.2 trillion compared to ₹2.3 trillion a year ago. The net Debt ratio was improved decreasing to 3.3 times in FY24 from 5 times.
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