Adani Group shares trade firm; Power, Green Energy stocks gain up to 9%

Adani Green Energy Twenty Five, a step-down subsidiary of Adani Green, has commissioned a 250 MW solar power project at Rajasthan

Shares of Adani Group companies were trading firm, after gaining up to 9 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes in an otherwise subdued market.

 

Adani Green Energy (Rs 1,248.90) and Adani Power (Rs 561.85) have rallied 9 per cent and 8 per cent, respectively. Adani Total Gas, Adani Energy Solutions, Adani Enterprises, Adani Ports and Special Economic Zone (SEZ) and Adani Wilmar were up in the range of 2 to 5 per cent in intra-day trades. In comparison, the BSE Sensex was down 0.08 per cent at 81,458 at 11:33 AM.

 

Shares of Adani Green Energy (AGEL) have moved higher by 9 per cent to Rs 1,248.90 after Adani Green Energy Twenty Five Limited, a step-down subsidiary of the company commissioned a 250 MW solar power project at Badi Sid, Jodhpur district, Rajasthan.

 

 

With the commissioning of this plant, AGEL’s total operational renewable generation capacity has increased to 11,434 MW, the company said in an exchange filing.

 

Meanwhile, the Gautam Adani-led conglomerate on Tuesday said it will use its own resources to fund a Sri Lankan port project and not seek US funding.

 

In an exchange filing late on Tuesday, Adani Ports and SEZ, said the "CWIT project in Sri Lanka is progressing well and is on track for commissioning by early next year". It added that the company will fund the ongoing project through "internal accruals", aligning with its capital management strategy.

 

The company said it has withdrawn its request for financing from the US International Development Finance Corporation (DFC).

 

Meanwhile, analysts at Elara Capital maintained their 'Buy' rating on Adani Ports and SEZ, with an unchanged target price of Rs 1,813, valuing the ports business at 19x FY27E EV/Ebitda, and logistics at 8x FY27E EV/Ebitda. The key risk is a slowdown in global trade due to geopolitical crises.

 

Given Adani Ports and SEZ’s leadership and operational efficiency, it will remain a dominant beneficiary of growth in ports, with capex plans being funded via a mix of debt and internal accruals to sustain healthy net debt-Ebitda ratio at less than 2.5x (<2.5x), the brokerage firm said.

 

Adani Ports and SEZ will continue to focus on growing organically in the domestic market by increasing market access (via expanding port capacity, investing in logistics and land development) and market penetration (digitalising value chain, technology-led cost efficiencies and green operations) even as it maintains its market share, the brokerage firm said in a company update.

 

Even in the absence of merger and acquisition activity (which drove volume in FY14-24), Adani Ports and SEZ is confident of achieving 12 per cent domestic port volume compound annual growth rate (CAGR) in the next five years. The company's logistics segment may see 7x revenue growth till 2030 backed by asset creation. International ports would be a selective play through assets meeting the RoCE threshold, analysts said.