Adani Group shares rally up to 10%; Adani Power zooms 200% from 52-week low

Shares of Gautam Adani group companies were in focus and rallied up to 10 per cent on the BSE in Monday’s intra-day trade amid heavy volumes.

Adani Power, Adani Ports and Special Economic Zone (SEZ) and New Delhi Television (NDTV) rallied between 7 per cent and 10 per cent. Adani Enterprises, Adani Energy Solutions, Adani Total Gas, Adani Wilmar, Ambuja Cements and ACC were up in the range of 2 per cent to 4 per cent on the BSE. In comparison, the S&P BSE Sensex was up 0.53 per cent at 66,949 at 12:16 PM.

Among individual stocks, NDTV surged 10 per cent to Rs 234.20 on back of five-fold jump in trading volumes. A combined 1.8 million shares changed hands on the NSE and BSE.

Shares of Adani Enterprises were up nearly 3 per cent at Rs 2,590 after the company on Friday said it has formed an equal joint venture with Japanese trading house Kowa Group for marketing of green ammonia and green hydrogen produced by the Indian conglomerate. Adani and Kowa will hold a 50 per cent stake each in the joint venture.

"Adani Global Pte Ltd, Singapore, a step-down wholly-owned subsidiary of (Adani Enterprises Ltd) has signed a joint venture agreement with Kowa Holdings Asia Pte Ltd, Singapore on September 8," the Adani group flagship firm said in an stock exchange filing.

Meanwhile, shares of Adani Power surged 8 per cent to Rs 397.30 on the BSE in intra-day trade with trading volumes at the counter rising 1.5 times compared to average daily volumes in past two weeks. The stock of integrated power utilities company was quoting higher for the seventh straight day and rallied 24 per cent during the period.

Adani Power is now seen inching towards its record high level of Rs 432.50 touched on August 22, 2022. It has zoomed 200 per cent from its 52-week low of Rs 132.55 hit on February 28, 2023.

Adani Power is the largest private thermal power producer in India. The company has an installed thermal power capacity of 15,250 MW spread across eight power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, apart from a 40 MW solar power plant in Gujarat.

For June quarter (Q1FY24), Adani Power reported 83.3 per cent year-on-year (YoY) jump in its consolidated profit after tax at Rs 8,759 crore, as compared to Rs 4,780 crore for Q1FY23.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q1F24 stood 41.5 per cent YoY higher at Rs 10,618 crore, as compared to Rs 7,506 crore in a year ago quarter. EBITDA growth was supported mainly by prior period income recognition and incremental contribution of Godda power plant, the company said.

Adani Power in its FY23 annual report said that the company expects to report a stronger operating performance due to improved power demand and stronger resource linkages. Besides, the commissioning of the Godda power plant is expected to enhance revenues starting from the current financial year.

The Government of India’s focus to attain ‘Power for all’ has accelerated capacity addition in the country along with expansion and strengthening of power transmission and distribution networks. The nation still has a long way to go, as per capita annual consumption in the country was 1,255 kWh in FY22, which is significantly lower than world average and that of other developing countries like South Africa and Brazil, the company said, adding demand for electricity in India is expected to grow at a sustained pace given the government’s massive push towards ‘Make-In-India’, PLI (Production Linked Incentive) Scheme, increasing industrialization, improving incomes and standards of living, and push for increasing the penetration of electric vehicles in the transportation sector, among others.