On Tuesday, shares of four of the six publicly traded Adani group companies soared to a record. Adani Enterprises Ltd surged 8% to ₹1,240.45; Adani Total Gas Ltd rose 6% to ₹1,248; Adani Transmission Ltd jumped 5% to ₹1,147; and Adani Ports and Special Economic Zone Ltd soared 14% to ₹852.
The group has established a commanding presence in the country’s infrastructure sector, an area that the central government led by Prime Minister Narendra Modi has laid special emphasis on to stimulate growth. Over the past few years, it has made major investments across airports, data centres, natural gas infrastructure, ports and renewable energy.
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On Tuesday, the total market value of the six listed Adani Group companies stood at more than $107 billion, according to BSE data. Only two other Indian groups—the Tata group and Mukesh Ambani led-Reliance Industries Ltd—have achieved this milestone. The Tata group’s current market value stands at $242 billion, while Reliance Industries’ market capitalization is at $190 billion.
Analysts say the recent surge in stock prices of Adani group was on account of rapid expansion by many group firms that led to earnings visibility in the future. “Adani group stocks have had a strong run over the last year, mainly due to strong traction in renewables and large order wins. However, considering the sharp run-up, the valuations look stretched now. We would thus recommend waiting for a correction before making any fresh investment,” said Ajit Mishra, vice-president of research, Religare Broking.
A total of five companies in the Adani group currently have a market cap of over ₹1 lakh crore, with only Adani Power Ltd failing to make the cut. Still, the money-losing Adani Power has tripled its market value in the past year to ₹38,000 crore.
Adani Total Gas, the group’s city gas distribution venture, saw its market cap jump more than 13-fold in the past year to 1.32 trillion.
Throughout the pandemic, the Adani group has aggressively expanded its presence across Indian infrastructure through a mix of organic growth and acquisitions.
Group flagship Adani Enterprises Ltd ventured into the airports sector in 2019 and now controls seven airports in India and a quarter of the country’s air traffic. It acquired a controlling stake in the Mumbai International Airport.
Adani Ports and Special Economic Zone Ltd has acquired three big ports with a combined value of ₹18,000 crore over the past six months, including the Krishnapatnam Port Ltd, Gangavaram Port Ltd and Dighi Port.
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