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Adani Enterprises jumps over 17% in two sessions

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Capital Market
Last Updated : Oct 16 2015 | 10:50 AM IST

Adani Enterprises rose 3.36% to Rs 100 at 9:38 IST on BSE, extending yesterday's 14.02% rise triggered by Australia's environment ministry approving the company's Carmichael coal mine and rail project in Australia, subject to 36 strict conditions.

Shares of Adani Enterprises surged 14.02% to Rs 96.75 yesterday, 15 October 2015. The stock has risen 17.58% in two sessions from Rs 85.05 on 13 October 2015.

Meanwhile, the BSE Sensex was down 45.28 points, or 0.17%, to 26,964.86.

On BSE, so far 11.28 lakh shares were traded in the counter, compared with an average volume of 11.85 lakh shares in the past one quarter.

The stock hit a high of Rs 101.90 and a low of Rs 98.05 so far during the day. The stock hit a 52-week high of Rs 574.25 on 3 June 2015. The stock hit a 52-week low of Rs 65.85 on 8 September 2015.

The stock had outperformed the market over the past one month till 14 October 2015, rising 10.05% compared with 3.57% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 4.98% as against Sensex's 4.13% decline.

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The large-cap company has an equity capital of Rs 109.98 crore. Face value per share is Re 1.

The Carmichael coal, railway and port project includes building Australia's largest thermal coal mine in the north Galilee Basin approximately 160 km north-west of Clermont in Central Queensland, linked by a new 388 km standard gauge rail line to a new terminal at Abbot Point Port near Bowen. Adani Enterprises' wholly-owned step down subsidiaries in Australia are implementing the Carmichael coal, railway and port project.

Over its 60 year life this major infrastructure will not only support Adani's operations, but the 388 kilometre rail line and port facilities have the potential to assist the development of other proposed mines in the Galilee Basin. The Carmichael mine would be among the largest coal mines in the world.

Adani Group initiated the Carmichael coal project in 2010 with plans to develop a coal mine and a rail link with Abbot Point port, but the project soon ran into opposition from environmentalists.

There were concerns over the project that it may threaten the Great Barrier Reef, the world's largest coral reef system, off the coast of Queensland in northeastern Australia. On 5 August 2015, an Australian court had temporarily blocked the progress on the project in the inland Galilee Basin, following a claim that the Adani Group failed to include conditions to protect two vulnerable species - the yakka skink and the ornamental snake. The yakka skink is a lizard seen mostly in Queensland.

The Queensland state project has been approved subject to 36 of the strictest conditions in Australian history.

Adani Enterprises' consolidated net profit fell 31.8% to Rs 379.67 crore on 30.8% decline in total income to Rs 11543.50 crore in Q1 June 2015 over Q1 June 2014.

Adani Enterprises is a diversified company. The company is engaged in the business of coal trading, coal mining, renewable energy among others.

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First Published: Oct 16 2015 | 9:42 AM IST

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