Adani Group stocks soar nearly 10 per cent, Jefferies recommends ‘buy’ for 4 Group firms

NEW DELHI — The shares of Adani Group portfolio of companies surged nearly 10 per cent on Friday amid heightened trading activity, as Sensex snapped the losing streak of the last five trading sessions.

Adani Enterprises’ stock soared by 6.8 per cent, Adani Ports and SEZ saw a gain of 3.9 per cent, Adani Total Gas surged by 9.4 per cent, Adani Power climbed to 8.8 per cent and Adani Energy Solutions traded nearly 1.86 per cent higher.

Adani Green Energy shares rose by 2 per cent while Adani Wilmar and Ambuja Cements recorded gains of 3.16 per cent and 2.56 per cent, respectively.

NDTV’s shares went up 7.78 per cent.

All 10 Adani Group stocks saw a solid momentum, collectively gaining nearly INR 80,000 crore in market capitalisation.

Meanwhile, a new Jefferies report recommended ‘Buy’ on Adani Enterprises, Adani Ports, Adani Energy Solutions, and Ambuja Cements, as Adani Group clocked an impressive 40 per cent EBITDA growth (YoY) in FY24.

Despite the setback from the short-seller report in late FY23, the Adani Group has emerged unfazed with its businesses showing solid resilience and turning the ‘setback’ into a comeback.

While the group EBITDA (a widely used profit parameter for infrastructure companies) recorded a 40 per cent year-on-year growth in FY24, the leverage ratio improved to a multiyear low at the group level. The group is back on an expansion spree and eyeing $90 billion capex over the next decade.

During FY24, the Adani Group’s EBITDA grew to INR 660 billion, with more than doubling of Adani Power’s EBITDA on capacity addition, higher volumes, merchant contribution and lower imported coal prices. Adani Enterprises is scaling its captive manufacturing capacity towards starting Green Hydrogen production by FY27.

“The Navi Mumbai Airport appears likely to be commissioned by March FY25; Data Centre projects are scaling up,” the report said.

Adani Ports recently published its five-year business road map, targeting 18 per cent EBITDA CAGR in FY24-29E.

Adani Energy Solutions’ EBITDA growth at 16 per cent was driven by new line addition, while Adani Total Gas’ 27 per cent YoY growth was driven by 15 per cent volume growth and gross margin expansion aided by lower gas costs.