Investors’ confidence increased, the market value of Adani Group shares crossed Rs 11 lakh crore

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Shares of Adani Group hit lows after the Hindenburg report, the shares have recovered a lot since the start of March 2023 and have a market cap of around Rs. 5 lakh crore has been added.

According to analysts, the rise in the stock was driven by the Adani Group’s strategic focus on growing demand for energy, its fundraising initiatives and sustained buying interest as the group continues to grow its infrastructure and energy businesses. “Investors are recognizing the value of Adani’s diversified business model, especially as the group has doubled down on fundraising efforts and project execution…” says an analyst at a leading domestic brokerage firm. Energy demand in India is increasing on the back of strong domestic economic growth… We expect this trend to translate into buy sentiment in Adani Group shares in the coming months.”

Shares of Adani Power were in the news on September 8, 2023 with an increase of 2.88% to Rs. 369.15 touched a 10-month high and surpassed the level hit on November 11, 2022. The stock saw strong buying interest and this trend reflects positive sentiment about the company’s operational performance and strategic initiatives.

On the trading front, four other Adani Group companies reported profits on Friday, including Adani Enterprises, Adani Ports & SEZ and Adani Wilmar.

Adani Ports and SEZ saw its market value increase by 1.86%, taking it to Rs. 825 and its market cap was Rs. 1.78 lakh crore crossed. In recent times, the company has been creating new records in the field of cargo handling.

Shares of the group’s flagship company Adani Enterprises rose 0.39% on Friday to Rs. 2519.30, the market valuation of which was Rs. 2.87 lakh crore was done.

The recent increase in the group’s market valuation shows that the initiative to strengthen investor confidence is gaining support. Fundraising activities are also underway with global partners such as GQG Partners and other potential stakeholders. During the last six months, GQG Partners has invested over US $4 billion in five Adani Group companies.

The financial performance of Adani’s listed companies also witnessed strong growth in the first quarter of FY2024. During the first quarter, EBITDA of Adani’s listed portfolio grew by 42% over last year to Rs. 23,532 crores. Core Infrastructure, which accounts for 86% of the Adani portfolio, reported a 34% increase in EBITDA over last year, at Rs. 20,233 crore has been reached. AEL’s infrastructure business grew EBITDA by 96% over the previous year to Rs. 1,718 crore has been recorded.

Adani Group targets EBITDA in next 2-3 years to Rs. 90,000 crore to be carried.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani group company.)

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