Adani Group Stocks Skyrocket, Market Cap Reaches New Heights Amid NDA Victory Projections
June 3, 2024 – Mumbai:
In a remarkable turn of events, Adani Group stocks have experienced a substantial rally, restoring their market capitalization to pre-Hindenburg Report levels.
On Monday, the total market cap of the conglomerate surged past the 20.01 lakh crore mark, a significant recovery from the approximately $100 billion loss incurred following the damning report by Hindenburg Research in January 2023.
The rise in Adani Group’s stock values is particularly notable, with most of its listed companies seeing significant gains.
Adani Power Ltd led the way, jumping by about 18% to Rs 890.40, and reaching a market value of over Rs 3.43 lakh crore. Adani Ports, which will soon be included in the BSE Sensex, increased by 12% to Rs 1,607.95, with a market value of over Rs 3.47 lakh crore. Adani Enterprises Ltd, the main company of the group, rose by 10%, bringing its total market value to over Rs 4.26 lakh crore.
Other Adani companies also saw significant increases. Adani Energy Solutions (previously Adani Transmission Ltd), Adani Green Energy, and Adani Total Gas each went up by around 10%.
Adani Wilmar increased by more than 7%, and the recently acquired cement companies, Ambuja Cements and ACC, both rose by 5%. NDTV’s stock also went up by more than 11% in the same session.
The overall market sentiment towards Adani Group has been bolstered by strong financial performance in FY24 and favorable political developments.
In the financial year, Adani Group reported a record EBITDA growth of 45%, reaching Rs 82,917 crore (approximately $10 billion). This performance reflects the strength and stability of its diversified business portfolio.
Adding to the positive sentiment, exit polls have predicted a resounding victory for the NDA, led by Prime Minister Narendra Modi, in the upcoming Lok Sabha elections. This political stability is seen as a favorable factor for the conglomerate, contributing to the market’s optimistic outlook.
Gautam Adani’s personal wealth has also seen a significant boost, surging by more than $30 billion in 2024. With a total wealth of $111 billion, Adani has reclaimed his position as the richest person in Asia and the 11th richest globally, according to the Bloomberg Billionaire Index.
The stock market rally was further fueled by strategic business moves, such as Adani Ports signing a 30-year concession pact with the Tanzania Ports Authority to operate and manage Container Terminal 2 at the Dar es Salaam Port. This international expansion highlights Adani Group’s ongoing commitment to growth and global presence.