The Adani Group’s market capitalisation skyrocketed 10% and gained a whopping Rs 1 lakh crore in market valuation as investors continued to repose faith in the group buoyed by the Supreme Court’s reservation of its verdict in the recent hearings. The conglomerate saw its market cap surge well past the Rs 11 trillion mark to Rs 11.30 trillion on Tuesday, significantly up from Friday’s Rs 10.26 trillion.
All the 10 Adani group stocks were trading up sharply higher at closing and clocked gains ranging from 3-20%.
Adani Total Gas (ATGL) stood out with the highest percentage gain among the Adani Group stocks surging 19.97% and adding Rs 11,796 cr to its market cap. Adani Energy Solutions (AESL) followed closely gaining 18.65%, which translated into Rs 15,170 cr increase in its market valuation.
The apex court’s decision to reserve judgment on the allegations of fraud against the Group on Friday acted as a catalyst for the financial upsurge. With the legal overhang taking a backseat, the focus has now shifted to Adani’s aggressive expansion and investment plans, particularly in the renewable energy sector and core infrastructure sector
“The market’s response today marked the turning point in Adani’s market valuation and is a clear indication of the market’s reassessment of the Group’s future prospects,” stated a market strategist. “The reaction today not only points to a recovery from the Hindenburg-induced slump but also shows that the market is now focussing on the Group’s high growth targets. Investors are increasingly convinced by Adani’s strategic direction and its potential for sustained growth and the recent developments all point out to the fact that the group continues to deliver on its promises of investing in energy security. Adani group stocks should continue to clock gains from here over the next few years not only on its attractive value proposition but also looking at the rapid pace of growth in the Adani Group.”
The Group’s recent quarters paint a picture of robust financial health, and the market’s response today is arguably a direct reflection of these improving fundamentals. The Group’s has also stated its intention of continuing to reduce its debt levels and also attract global capital investments.
Among other notable gainers on Tuesday were Adani Power (APL) which saw its shares climb 12.34% contributing to Rs 18,899 cr jump in the group’s market capitalisation.
Adani Green Energy (AGEL) wasn’t far behind registering a 12.25% with gains of Rs 18201 in market cap. Adani Wilmar (AWL) recorded a 9.94% uptick adding Rs 4094 crore to its market valuation.
The flagship Adani Enterprises (AEL) achieved an 8.98% increase, and led the rally expanding its market capitalisation by a hefty Rs 22,577 crore.