Adani Group stocks surge, adding Rs 2.6 lakh crore in two sessions

The surge in trading volumes significantly boosted the group's market capitalization, adding over Rs 2.6 lakh crore across these two sessions, reported Moneycontrol.

On Monday, the individual stock performances included Adani Enterprises rising by 7 percent, Adani Energy Solutions by 8 percent, Adani Ports and SEZ by 9 percent, Adani Power by 12 percent, Adani Green Energy by 7 percent, Adani Total Gas by 7 percent, Adani Wilmar by 3.5 percent, Ambuja Cement by 4 percent, ACC by 3 percent, and NDTV by 5 percent, according to the report.

Over these sessions, Adani Power led the market capitalization gains, contributing Rs 47,000 crore to reach a total market cap exceeding Rs 3.3 lakh crore.

Adani Enterprises added over Rs 61,000 crore, bringing its market cap to over Rs 4 lakh crore. Both Adani Green and Adani Ports saw their market caps increase by over Rs 42,000 crore each, while Adani Total Gas added over Rs 21,000 crore. Ambuja Cement and Adani Energy each added over Rs 13,000 crore to their market caps.

The total market cap of Adani Group firms rose from Rs 17 lakh crore to nearly Rs 19.65 lakh crore, Moneycontrol reported.

The recent rise in stock prices follows the Adani Group's strong earnings performance.

In FY24, the group's EBITDA grew by 40% year-on-year to Rs 66,000 crore, largely driven by Adani Power's EBITDA doubling due to capacity expansion, increased volumes, merchant contributions, and lower imported coal prices.

Jefferies India noted that after being impacted by a short-seller report in late FY23, the group focused on debt management and reducing founders' share pledges.

The group's EBITDA grew by 40% YoY in FY24, with a five-year CAGR of 27%, and it raised fresh funds from equity, debt, and strategic investors.

The promoters increased their stake in group companies, and the group's market cap rebounded.

The Adani Group is planning a $90 billion capital expenditure over the next decade.

Other group companies saw EBITDA growth between 16% and 33%, except for Adani Wilmar, which experienced a decline. Adani Enterprises saw a 29% YoY EBITDA growth, driven by new ventures like ANIL/solar and Airports, and IRM trading. Adani (Ambuja) Cement's EBITDA growth was driven by a significant rise in unit EBITDA.

Adani Ports' EBITDA growth was propelled by a 24% increase in volumes. Adani Green saw a 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 a 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 group's net debt, including debt related to the acquisition of the Cement business, remained steady at Rs 2.2 trillion in FY24 compared to Rs 2.3 trillion. There was a significant improvement in the net debt/EBITDA ratio, decreasing to 3.3x in FY24 from around 5x YoY.

Adani Ports and Adani Power observed a reduction in net debt during FY24. However, Adani Enterprises and Adani Green experienced increased leverage due to new capital expenditure projects.