Most Adani Group stocks were trading in the green on Monday, following news report that the Adani Group is aiming for a 20% year-on-year increase in pre-tax earnings to reach ₹90,000 crore EBITDA in 2-3 years, thanks to strong development in companies ranging from airports to energy.
Adani Enterprises Ltd, Adani Ports & Special Economic Zone Ltd, Adani Transmission Ltd, Adani Power Ltd, Adani Total Gas Ltd, and Adani Wilmar Ltd all saw their stock prices jump by 0.8% to 4%. Adani Green Energy Ltd shares, on the other hand, were trading in the red.
“The volatility is expected to remain high in the near term owing to regular news flows on the stock. Overall, one should be very specific in stock selection within the group and avoid aggressive short term bets,” said Ruchit Jain, lead research analyst at 5paisa.
According to a PTI report, the ports-to-energy conglomerate is now expecting strong growth in sectors such as airports, cement, renewable, solar panels, transportation and logistics, and power and transmission, adding that several of Adani’s new infrastructure investments will also begin to bear fruit and generate cash in the coming years.
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The group has recently made considerable investments in ports and accomplished big projects in renewables, transportation, and ports. Airports and renewables are also reporting higher cash flows.
According to the media report, its stable asset base, created over three decades, enables resilient critical infrastructure and assures good asset performance throughout their life cycles. The group’s listed portfolio EBITDA climbed 36% year on year to ₹57,219 crore in FY23 (April 2022 to March 2023 fiscal). Core infrastructure companies, which account for 82.8 percent of the portfolio and include energy, transportation, logistics, and Adani Enterprise Ltd’s infrastructure projects, increased EBITDA by 23% year on year to ₹47,386 crore.
Following a negative report by a US short seller, the company repaid USD 2.65 billion in loans earlier this month to complete a prepayment schedule to lower total debt.
Adani Enterprises’ joint venture with EdgeConneX raises $213 million to build data center
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