Adani Group stocks witnessed a sharp rally on Monday, climbing up to 8% in early trade. The surge was driven by a combination of strong quarterly results and media reports about representatives of Gautam Adani meeting officials from former US President Donald Trump’s team. These developments have sparked fresh investor interest across the group’s listed companies.
Overview of Contents
Adani Ports Leads the Rally
Adani Ports & SEZ saw the biggest jump, rising nearly 6% to ₹1,345 apiece on the BSE, marking its highest gain in the last five months. With this jump, the company’s market capitalisation increased by a whopping ₹18,000 crore.
The company recently announced its financial results, reporting its highest-ever profit for the financial year. Its annual profit surged by 37% to ₹11,061 crore. For the January to March quarter alone, profits rose 50% year-on-year to ₹3,023 crore, up from ₹2,015 crore last year.
Adani Enterprises and Other Group Stocks Also Shine
Adani Enterprises, the flagship company of the group, rose around 5.45%, trading at ₹2,419.30. Its market capitalisation saw an increase of ₹14,000 crore, reaching ₹2.78 lakh crore.
Other group companies also gained significantly:
- Adani Green Energy: Up by 4.03% to ₹940 per share
- Adani Total Gas: Rose 6.47% to ₹638, later touching ₹653.10 with a gain of 8.90%
- Adani Power: Gained 4.15% to ₹547
- Adani Energy Solutions: Up 4.13% to ₹944.65
NDTV, Ambuja Cement, and AWL Agri Also Join the Rally
Adani-owned NDTV also traded in green, up 2.85% to ₹120.99. Ambuja Cement showed a 1.74% rise, trading at ₹540.95. Meanwhile, AWL Agri Business climbed 1.15%, reaching ₹272.
Why Are Adani Stocks Rising?
The sharp uptrend in Adani Group stocks is being attributed to:
Strong Quarterly Results:
Adani Ports posted record profits.
Adani Energy Solutions reported 103% growth in annual profit, reaching ₹2,427 crore. Q4 profits rose 87% to ₹714 crore, with total income rising 42% to ₹24,447 crore.
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Robust Operational Performance: Adani Total Gas reported a 15% jump in operational income in Q4, reaching ₹1,448 crore. For the full year, revenue rose 12%, largely due to increased CNG volume.
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Positive Global Developments: A Bloomberg report stated that aides of Gautam Adani met with Trump administration officials to push for dismissal of criminal charges in the US. These discussions reportedly gained momentum in recent weeks, raising investor hopes for a favourable resolution.
Legal Efforts in the US
In November, US authorities had indicted Gautam Adani and his nephew, Sagar Adani, on allegations of bribery and misleading American investors. However, Adani Green later stated it found no evidence of wrongdoing after an internal review.
The Adani Group has hired top American law firms, including Kirkland & Ellis and Quinn Emanuel, to represent them in civil and criminal cases related to the SEC and Eastern District of New York.
Conclusion
The combined effect of impressive quarterly earnings, operational strength, and the possibility of legal relief in the US has boosted investor confidence in Adani Group companies. With several stocks gaining up to 8% in a single session, the group is once again making headlines in the Indian stock market.