Adani Group Shares Surge Up to 14% Today: The Adani Group, one of India’s largest and most diversified conglomerates, experienced a remarkable surge in its stock prices on Friday. The shares of all ten listed companies within the group saw significant gains, reflecting renewed investor confidence and a strong market performance. This resurgence follows a challenging period for the conglomerate, particularly after the critical report by the US-based short-seller Hindenburg Research in January 2023.
Adani Group Shares Intra-day Performance Highlights
During the trading session on Friday, Adani Group stocks witnessed a remarkable intra-day surge of up to 14%. However, as the trading session concluded, the stocks gave up some of their gains but still managed to close on a positive note.
Adani Enterprises Ltd: Flagship Company Performance
Adani Enterprises Ltd, the flagship entity of the Adani Group, emerged as a significant performer, rising by 7% to settle at Rs 3,416.75. This surge in the share price elevated the company’s market capitalization to approximately Rs 3.9 lakh crore. The steady growth in Adani Enterprises reflects robust investor confidence and the company’s strategic initiatives aimed at driving long-term growth.
Adani Ports and Special Economic Zone
Adani Ports and Special Economic Zone (APSEZ), another blue-chip stock from the Adani Group, demonstrated impressive intra-day performance with a rise of 5%. By the end of the trading session, the stock settled at Rs 1,440, up by 4%, bringing its total market capitalization to Rs 3.11 lakh crore. APSEZ’s growth is attributed to its strategic port expansions and increasing trade volumes, making it a critical player in India’s logistics and infrastructure sector.
Adani Power Ltd: Leading the Surge
Adani Power Ltd led the surge among Adani Group stocks, with its share price skyrocketing by over 14% during the trading session. The stock finally settled at Rs 759.80, marking a 9% gain for the day. The company’s market capitalization topped Rs 3 lakh crore, reflecting its strong operational performance and growing demand for power across India.
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Other Key Performers
- Adani Total Gas Ltd: The stock ended 9% higher at Rs 1,044.50, after peaking with an 11% intra-day rise. The company’s total valuation stood at Rs 1.15 lakh crore.
- Adani Wilmar Ltd: This stock rose over 3% to Rs 354.90, showcasing its steady market presence.
- Adani Green Energy Ltd: It gained more than 2%, closing at Rs 1,917.35, bolstered by its renewable energy projects.
- Adani Energy Solutions Ltd: Formerly known as Adani Transmission Ltd, it gained over 2% to close at Rs 1,120, reflecting its strategic rebranding and expansion in energy solutions.
- New Delhi Television (NDTV): Acquired by the Adani Group, NDTV saw an 8% rise, highlighting investor confidence in its new ownership.
- Ambuja Cement and ACC Ltd: Both companies advanced more than 2%, underscoring their solid performance and strategic importance within the group’s portfolio.
Strategic Fundraising Initiatives
Earlier this week, Adani Enterprises’ board approved a fundraising plan of Rs 16,600 crore via the qualified institutional placement (QIP) route. Additionally, Adani Energy Solutions’ directors agreed to raise Rs 12,500 crore through similar means. These initiatives are aimed at strengthening the financial position of these companies and supporting their expansion plans.
Analyst Recommendations and Future Outlook
Global brokerage firm Jefferies has issued a ‘buy’ recommendation for Adani Enterprises, setting a target price of Rs 3,800. Similarly, for Adani Energy Solutions, the target price is Rs 1,365. Jefferies also recommends buying Adani Ports, which will be included in the Sensex effective June 24, with a target price of Rs 1,640. These recommendations are based on the strong fundamentals and growth prospects of these companies.
Technical Analysis: Adani Power
Kushal Gandhi, a Technical Analyst at StoxBox, highlighted that Adani Power has been trading in a volatility contraction pattern. This pattern suggests that major investors are acquiring the stock at elevated levels, absorbing available liquidity and building bullish momentum for a continued uptrend. According to Gandhi, “The power stock displays robust price strength and EPS strength, improving buyer demand with a progressive uptrend. We reiterate to buy Adani Power for the target of Rs 790 and a protective stop loss at Rs 655.”
Conclusion
The impressive performance of Adani Group stocks on Friday signifies a strong recovery and growing investor confidence in the conglomerate. With strategic initiatives, robust market fundamentals, and positive analyst recommendations, the Adani Group is well-positioned for sustained growth and value creation for its stakeholders.
