Adani Group's market cap crosses Rs 11 trillion on rising investor confidence
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New Delhi: Adani Group has witnessed a notable resurgence in its market capitalisation, surging beyond Rs 11 trillion.
This uptick in valuation is attributed to a sustained surge in value buying from both domestic and international investors. The conglomerate's ten listed companies now boast a combined market capitalisation of Rs 11.02 trillion, showcasing a notable increase from Rs 10.96 trillion on the preceding day.
This resurgence marks a substantial recovery from the post-Hindenburg lows, with the group's stocks having accrued nearly Rs 5 trillion in market capitalisation since early March 2023. Analysts assert that this ascent is fueled by persistent investor interest in light of the group's strategic focus, fundraising endeavors, and unwavering commitment to infrastructure and power projects amidst escalating energy demands, reported NDTV.
An analyst at a prominent domestic brokerage highlighted, "Investors are recognising 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."
Adani Power stole the spotlight by surging 2.88% on Friday, reaching a 10-month high of Rs 369.15, surpassing levels last witnessed on November 11, 2022. This upswing mirrors positive sentiment surrounding the company's operational performance and strategic undertakings.
In terms of trading, four additional Adani group entities recorded gains on Friday, including Adani Enterprises, Adani Ports and SEZ, and Adani Wilmar. Adani Ports and SEZ saw a 1.86% uptick in its market value, pushing its market price to Rs 825 and its overall market value beyond the Rs 1.78 trillion mark. 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.
These recent strides in valuation mirror the conglomerate's ongoing efforts to bolster investor confidence. Initiatives such as fundraising activities with global partners like GQG Partners and other stakeholders are reportedly in progress. Over the past six months, GQG Partners has invested over $4 billion across five Adani Group companies.
Adani's listed firms exhibited robust growth in Q1 FY2024. The EBITDA of Adani's listed portfolio for the quarter grew by an impressive 42% year-on-year to Rs 23,532 crore. The core infrastructure EBITDA registered a growth of 34% year-on-year to Rs 20,233 crore, comprising 86% of the Adani portfolio. AEL's infrastructure business saw an EBITDA growth of 96% year-on-year to Rs 1,718 crore, constituting 7% of its portfolio. The group now aims for an EBITDA of over Rs 90,000 crore in the next two to three years.