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Adani Enterprises spurts after final OK for coal mine project

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Capital Market
Last Updated : Jun 07 2017 | 12:01 AM IST

Adani Enterprises rose 4.67% to Rs 123.15 at 10:17 IST on BSE after the company said that its coal mining and transportation project for its Carmichael mine in Central Queensland, Australia has been given the green-light.

The announcement was made during trading hours today, 6 June 2017.

Meanwhile, the S&P BSE Sensex was up 1.61 points, or 0.01% to 31,311.10.

On the BSE, 13,000 shares were traded in the counter so far, compared with average daily volumes of 17.59 lakh shares in the past one quarter. The stock had hit a high of Rs 124.80 and a low of Rs 118.80 so far during the day. The stock hit a 52-week high of Rs 160.60 on 18 April 2017. The stock hit a 52-week low of Rs 58.35 on 9 November 2016.

The stock had outperformed the market over the past one month till 5 June 2017, rising 3.79% compared with 4.86% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 20.17% as against Sensex's 7.97% rise. The scrip had also outperformed the market in past one year, rising 63.18% as against Sensex's 16.92% rise.

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

Adani Enterprises gave final investment approval on Tuesday, 6 June 2017, for its Carmichael coal mine and railway in Australia's north.

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Adani Chairman, Gautam Adani, announced the official start of one of the largest single infrastructure developments in Australia's recent history. This is the largest single investment by an Indian corporation in Australia. The company has been challenged by activists in the courts, in inner city streets, and even outside banks that have not even been approached to finance the project. The company is still facing activists. But it is committed to this project, Gautam Adani said.

Adani has signed contracts for design, construction, operations, supply of materials and professional services.

The Carmichael mine has faced years of delays amid opposition from environment groups who argue it will contribute to global warming and damage the Great Barrier Reef, leading some banks to rule out any role in funding. The project is located in the remote Galilee Basin, a 247,000 square-kilometre (95,000 square mile) expanse in the central outback that some believe has the potential to become Australia's largest coal-producing region.

On a consolidated basis, net profit of Adani Enterprises rose 72.31% to Rs 218.80 crore on 49.61% rise in net sales to Rs 12195.15 crore in Q4 March 2017 over Q4 March 2016.

Adani Enterprises is the flagship entity of the Adani group. Adani Enterprises started as a trading firm dealing in myriad commodities. Over a period of time, coal became its main stay and after it emerged as India's leading coal importer, it made forays into multiple sectors as forward and backward integration.

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First Published: Jun 06 2017 | 10:19 AM IST

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