Adani Group stocks in focus; Energy Solutions, AEL rally up to 6%

Shares of Adani Energy Solutions, Adani Ports, Adani Enterprises, Adani Power, Adani Green Energy, Adani Total Gas, Adani Wilmar and Ambuja Cements were up in the range of 2 to 6 per cent.

Shares of Adani group companies were in focus on Tuesday as they rallied up to 6 per cent on the BSE in today’s intraday trade amid heavy volumes. 

Shares of the group's companies were up in the range of 2 to 6 per cent, including Adani Energy Solutions (up 6 per cent at Rs 985), Adani Ports and Special Economic Zone (up 4 per cent at Rs 1,402.60), Adani Enterprises (up 3 per cent at Rs 3,115), Adani Power (up 2 per cent at Rs 637.95), Adani Green Energy (up 2 per cent at Rs 1,791.70), Adani Total Gas (up 2 per cent at Rs 756.80), Adani Wilmar (up 2 per cent at Rs 338.60), and Ambuja Cements (up 2 per cent at Rs 602.75).

In comparison, the BSE Sensex was up 0.45 per cent at 81,418 at 12:20 PM.

 

Thus far in calendar year 2024, select Adani Group stocks have underperformed the market, with Adani Total Gas (down 25 per cent), Adani Energy Solutions (down 6 per cent), Adani Enterprises (up 7 per cent) and ACC (up 5 per cent). In comparison, the benchmark index has rallied 13 per cent during the period.

The US-based Hindenburg Research, in one of its reports, had alleged that the Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch owned stakes in offshore entities linked to Adani Group's alleged financial irregularities. The short seller had also alleged that 18 months after its 'damning' report on Adani, "Sebi has exhibited lack of interest in charges against Adani".

The Adani Group, and separately, Sebi chairperson, Madhavi Puri Buch, along with her husband, Dhaval Buch, have denied the allegations levelled by Hindenburg.

For a discredited short-seller under the scanner for several violations of Indian securities laws, Hindenburg's allegations are no more than red herrings thrown by a desperate entity with total contempt for Indian laws, an Adani Group spokesperson had said. CLICK HERE FOR FULL DETAILS

Among the individual stocks of the company, Adani Energy Solutions had rallied 6 per cent to Rs 985 in intraday trades. The stock of the power distribution company has corrected 27 per cent from its 52-week high level of Rs 1,347.90 that it touched on August 1, 2024.

In August, Adani Energy Solutions had raised Rs 8,373 crore via qualified institutional placement (QIP) route by issuing 85.79 million equity shares at an issue price of Rs 976 per share. The company proposed to utilise the QIP proceeds for investment in transmission assets, its smart metering business and debt repayment.

That apart, India's robust investment cycle and rising power demand are positive indicators for the power sector. The strong interest from institutional investors reflects their commitment to and belief in India’s energy transition, in which Adani Energy Solutions plays a pivotal role, the company's management said.

Meanwhile, Adani Enterprises, the group's flagship company, has witnessed substantial improvement in the performance of its solar (that is, Adani New Industries Limited (ANIL) ecosystem) division, strong progress in under-construction projects across the road and airport segments, which in CARE Ratings’ opinion, are likely to sustain over the medium-term backed by favourable demand prospects for each of the underlying sectors.

On August 10, 2024, Hindenburg Research had released a report with allegations on several matters related to the Adani Group, including ongoing regulatory investigations against it. CARE Ratings said it continues to monitor and evaluate the developments on this front.

In June 2024 quarter (Q1FY25), ANIL Ecosystem's solar manufacturing and wind turbine businesses recorded its highest ever earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 1,642 crore, with an increase of 3.6x on year-on-year (YoY) basis. It now contributes 38 per cent to total Ebitda of the company, on the back of its robust operational performance.