Adani group shares in demand; Enterprises, Total Gas, Power rally up 14%

Posted by Admin May 31, 2024 Bussiness

4 min read Last Updated : May 31 2024 | 10:45 PM IST

Shares of Adani group companies were in demand and rallied up to 14 per cent on the BSE in Friday’s intra-day trade backed by heavy volumes.

Adani Enterprises, Adani Power, Adani Ports and Special Economic Zone, Adani Total Gas, Adani Wilmar, Adani Energy Solutions, Adani Green Energy, Ambuja Cements, ACC and New Delhi Television (NDTV) were up between 3 per cent and 14 per cent. In comparison, the S&P BSE Sensex was up 0.10 per cent at 73,961 at 02:29 pm.

Adani group, which is among India’s top business houses with an integrated energy and infrastructure platform in India and a long track record of successfully executing large-scale projects.

It is one of India’s largest listed business incubators in terms of market capitalisation and is driven by the philosophy of incubating businesses in four core industry sectors – energy and utility, transportation and logistics, consumer, and primary industry. It represents an effective complement of established and developing businesses which address the needs of India.

Adani Enterprises’ strategic business investments are centered around green hydrogen ecosystem, airport management, data center, roads and primary industries like copper and petrochem – all of which have significant scope for value unlocking.

Shares of Adani Enterprises rallied 7 per cent to Rs 3,421 on the of back of a near two-fold jump in the average trading volumes.

Adani Enterprises in its FY24 annual report said that its net debt to earnings before interest, tax, depreciation, and amortisation (EBITDA) further fell to 2.2x from 3.3x over the past year, giving it additional headroom for future growth.

All of this resulted in an all-time-high levels of liquidity for the Group with a cash balance of Rs 59,791 crore. These consistent and improved metrics demonstrate our highly stable infrastructure platform, and led to a series of rating and outlook upgrades. Three of our portfolio companies – Ambuja, ACC, and APSEZ, are now AAA rated, Adani Enterprises said.

The flagship company Adani Enterprises is scaling its captive manufacturing capacity towards starting Green Hydrogen production by 2026-27; Navi Mumbai Airport appears likely to commission by the fourth quarter of the current financial year 2024-25; data centre projects are also scaling up.

Among other stocks, Adani Power hit a record high of Rs 791.95, as it zoomed 13 per cent in intra-day trades today on expectations of strong earnings.

India met a record maximum power demand of 250 GW on May 30, led by a combined impact of weather-related loads and growing industrial and residential power consumption. The northern region achieved a record ‘demand met’, reaching an all-time high of 86.7 GW, while the western region touched 74.8 GW. Thermal generation achieves a peak of 176 GW, especially during non-solar hours.

Adani Power said peak power demand is expected to reach 260 gigawatts this summer. Even while renewable power capacities are growing, India will need more thermal power to meet this rising demand. Looking at this, the government has issued directives to ensure adequate fuel supply for thermal power plants and to maximize their uptime. It has also raised its projections for incremental thermal power installation from 50 gigawatts to more than 80 gigawatts.

Adani Power, as India’s foremost private power producer, is very well placed to benefit from the long-term power demand outlook. Various DISCOMs have already announced their intention to invite bids for long-term PPAs from thermal power projects.

The company said it will look to tap into these opportunities through ground fuel expansion of its existing power plants on a selective basis. All new capacity to be set up by the company will utilize ultra-supercritical technology to improve efficiency and reduce emissions.

First Published: May 31 2024 | 2:52 PM IST