These Adani Group Stocks Led The Rally To Pre-Hindenburg Levels
Intraday highs of Adani Green Energy, Ambuja Cements, Adani Enterprises, and ACC were above the Jan. 24, 2023 closing levels.
Most Adani Group stocks have regained their market value following the impact of a short-seller report, with the power and ports businesses leading the recovery. Six of the 11 companies under the conglomerate have reclaimed the levels seen on Jan. 24, 2023.
Adani Power Ltd. now boasts a market cap of Rs 2.39 lakh crore, surpassing pre-allegation levels, followed by Adani Ports and Special Economic Zone Ltd., which saw an addition of Rs 1.85 lakh crore.
The intraday highs of Adani Green Energy Ltd., Ambuja Cements Ltd., Adani Enterprises Ltd., and ACC Ltd. also exceeded the Jan. 24, 2023, closing levels.
The Adani Group has now regained its total market capitalisation observed before the release of the report by US-based short-seller Hindenburg in January last year. After nearly 500 days, the market capitalisation of 11 listed group companies increased by almost Rs 2.16 lakh crore to surpass Rs 19.7 lakh crore in early trade on Monday.
Intraday, the group's market capitalisation gained as much as Rs 2.17 lakh crore. As of 2:52 p.m., it was up by Rs 1.64 lakh crore to Rs 19.18 lakh crore.
Adani Portfolio Financial Performance Sees New High
The Adani Group's Ebitda, or operating profit, surged 45% to a lifetime high of Rs 82,917 crore, causing the bottom line to jump 70.8% to a record high of Rs 40,129 crore.
The operational performance resulted in all-time high levels of liquidity for the group, with a cash balance of Rs 59,791 crore. During fiscal 2024, Ebitda performance of infrastructure and utility alone was above Rs 69,000 crore and accounted for 84% of the Ebitda of the portfolio companies, providing predictable cash flow generation.
Cash reserves of the companies rose 48.5% YoY to the highest-ever levels of Rs 59,791 crore. Meanwhile, the leverage—net debt to Ebitda—was down to 2.2 times, from 3.3 times at the end of fiscal 2023, and is at a multi-year low.
The Adani Group aims to leverage its high-tech infrastructure to power growth in the upcoming decades. The ports-to-power conglomerate's multi-decade story of high growth is centered around infrastructure and utility portfolio, the company said in an investor presentation.
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