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Adani Group Stocks update: On June 3, Adani Group stocks surged for the second straight session, matching the positive trend in Indian shares. approximately the course of these two sessions, the group’s market value climbed by approximately Rs 2.6 lakh crore, largely due to increasing trading volumes.

Adani Enterprises increased by 7% on Monday, Adani Energy Solutions increased by 8%, Adani Ports and SEZ gained by 9%, Adani Power increased by 12%, Adani Green Energy increased by 7%, Adani Total Gas increased by 7%, Adani Wilmar increased by 3.5 percent, Ambuja Cement increased by 4%, ACC increased by 3%, and NDTV increased by 5%.

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Adani Power gained the most during the last two trading sessions, adding Rs 470,000 crore to its total market capitalization, which now surpasses Rs 3.3 lakh crore. Adani Enterprises did likewise, increasing its market capitalization to exceed Rs 4 lakh crore, an increase of more than Rs 61,000 crore.

In addition, the market caps of Adani Green, Adani Ports, and Adani Total Gas all increased by more than Rs 21,000 crore, Rs 42,000 crore, and Rs 21,000 crore, respectively, during that time. Adani Energy and Ambuja Cement both achieved notable progress, increasing their respective market values by more than Rs 13,000 crore. The Adani Group’s total market capitalization is currently close to Rs 19.65 lakh crore, up from Rs 17 lakh crore just two days prior.

Adani Group Performance

Strong earnings performance has led to the group’s stocks’ recent two sessions’ upward momentum. The Adani Group’s EBITDA improved by 40% YoY to Rs66000 crore in FY24, mostly due to Adani Power’s EBITDA doubling due to increasing volumes, capacity development, merchant contributions, and decreased import coal prices.

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The MCap of Adani Group suffered in late FY23 due to a report on short sellers. The group’s priorities for FY24 were debt containment and lowering founders’ share pledges. The group raised new capital from equity, debt, and strategic investors; the promoter expanded stake in the group companies; and the group Mcap recovered. Overall group EBITDA increased 40% YoY in FY24 (5yr CAGR: +27%). Resuming its expansion drive, the group plans to invest USD 90 billion in capital over the next ten years. The group’s FY24 performance and future directions are covered in the report, according to a note from Jefferies India.

Adani power shares – source

All other group firms saw rise in EBITDA, with the exception of Adani Wilmar, which saw a decrease. Adani Enterprises’ YoY EBITDA increase was 29%, driven by the company’s new ventures in IRM trading, ANIL/solar, and airports. A notable increase in unit EBITDA was the primary driver of Adani (Ambuja) Cement’s EBITDA growth.

Volume growth of 24% drove Adani Ports’ gain in EBITDA. Adani Green had a 33% increase in EBITDA as a result of increased CUF and capacity development. Adani Total Gas witnessed 27% YoY growth from volume increases and margin expansion due to decreased gas costs, while Adani Energy Solutions saw a 16% gain in EBITDA from new line extensions. However, inventory losses and hedge mismatches brought on by changes in oil prices resulted in a YoY reduction in Adani Wilmar’s EBITDA.

Net debt for the group, which includes debt from the purchase of the cement company, was Rs2.2 trillion in FY24 as opposed to Rs2.3 trillion in FY23. The net debt/EBITDA ratio significantly improved, going from almost 5x YoY to 3.3x in FY24. During FY24, Adani Power and Adani Ports had a decrease in net debt. Nonetheless, new capital expenditure initiatives that the companies undertook resulted in increasing leverage for Adani Enterprises and Adani Green.