Adani Group stocks shot higher on Monday, with the majority reaching their 52-week highs. This was in response to the general upbeat mood of the Indian markets, which was heightened by exit polls that showed the government led by Prime Minister Narendra Modi winning handily with a sizable majority for the third time in a row. In addition, a recent report from Jefferies with a strong outlook on the Adani Group equities added to the mood.
At ₹890.40, its 52-week high, Adani Power surged as much as 17.7%. At ₹2173.65, the year-high, Adani Green Energy surged 13.5 percent. At ₹1581.45, the 52-week high, Adani Ports was trapped in its 10% upper circuit. In contrast, Adani Enterprises reached a 52-week high of ₹3,743, rising 9.7%.
Adani Total Gas increased 15.3 percent to ₹1197.95, among other equities that missed their 52-week highs. On October 26, 2023 of the year, it had reached its 52-week high of ₹1,259.90.
Moreover, Adani Energy Solutions increased by 11.2 percent to ₹1,249. On January 3, 2024, it reached its 52-week high of ₹1,250. Adani Wilmar had a 7.3 percent increase to ₹382. It also reached ₹446.30, the year’s peak, on June 2, 2023 of the previous year.
In intraday trades today, ACC and Ambuja Cements both saw increases of about 6.5 percent.
All ten of the Adani equities that are listed saw an almost ₹1.4 lakh crore increase in market capitalization combined, making the total market value of the conglomerate’s listed firms ₹19.24 lakh crore.
The Adani Group has recovered from the losses it suffered during the Hindenburg episode and is currently on a “expansion spree,” planning a $90 billion capital expenditure over the next ten years, according to a recent Jefferies report, in addition to strong exit polls that suggest the Modi government will likely win handily.
Previous year in January, a damning report on the Adani Group was published by American short-seller Hindenburg, which accused the company of accounting fraud, manipulating stock prices, and using tax havens improperly. Ever since the dispute started, the Adani Group has steadfastly refuted each of these claims. Investor suspicions escalated, but the denials didn’t stop the stocks from suffering.
According to a Jefferies study, the Adani Group prioritized debt reduction and the founders’ share pledge during the fiscal year 2023–2024. It also disclosed that its profit after tax (PAT) increased by 55% to ₹30,768 crore in FY24.
The study also noted that, in comparison to ₹2.3 lakh crore the year before, the group’s net debt stayed steady at ₹2.2 lakh crore in 2023–2024.
Three group stocks—Adani Enterprises (goal price: ₹3,800), Adani Ports (target price: ₹1,640), and Adani Energy Solutions (target price: ₹1,365)—have received a ‘buy’ rating from the brokerage.
By 2026–2027, Adani Enterprises plans to begin producing green hydrogen by ramping up its manufacturing capacity. Meanwhile, the Navi Mumbai Airport is scheduled to open in the fourth quarter of FY 2024–2025. The newly established dedicated freight corridor at Mundra has improved Adani Ports’ performance, and the company reported that growth is being driven by tremendous logistics potential.
The brokerage emphasized strategic debt management for Adani Energy Solutions, highlighting initiatives to refinance debt at fixed rates in line with the asset’s life.
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