Adani on the rise: Q3 results ignite 7% surge, pushing mcap near Rs. 15.6 lakh crore

Read Time:3 Minute, 36 Second

In the wake of Gautam Adani’s conglomerate’s interim budget 2024 and results releases, Adani Group stocks surged higher on Monday ( Jan 29, 2024). So far, only a number of Adani Group firms have announced their quarterly profits for the December 2023 period. However, later this week, a handful of more companies are expected to follow suit.

Market capitalization for Adani Enterprises Ltd., the parent firm of the Adani Group, reached about Rs. 3.5 lakh crore on Monday (Jan 29 2024), as shares increased by as much as 6% to Rs. 3063.90. On Thursday, February 1, 2024, Adani Ports and Adani Enterprises will reveal their financial results. For the day, the latter one increased by 4.4% to Rs. 1,196.75.

In an exchange filing, Adani Connex Private (ACX), a joint venture of Adani Enterprises, said that it has signed memorandums of understanding (MoUs) with Adani Power to acquire a 100 per cent equity investment in Aviceda Infra Park and Innovant Buildwell, two fully owned subsidiaries of APL. This is a good development in the Adani investigation scenario.

Adani Group’s Impressive Financial Performance and Stock Soars Across Subsidiaries in Q3FY24

With a market valuation close to 2.2 lakh crore rupees, Adani Power Ltd. shares reached an all-time high of 569.60 rupees on Monday (29 Jan’24). For the quarter ending December 31, 2023, Adani Power’s consolidated net profit was Rs. 2,737.96 crore, an increase of more than 100% year-on-year. In Q3FY24, its EBITDA increased by 151% year over year, reaching Rs. 5,009 crore.

In response to Monday’s (29 Jan’24) results announcement, Adani Green Energy Ltd. shares was trading 4.40 percent higher at 1737.75, valuing the company at 2.75 lakh crore rupees. Stock of Adani Total Gas Ltd. jumped 4.75 percent to Rs. 1,051 on Monday(29 Jan) before the company’s results announcement on Tuesday.

On Wednesday, January 31, Adani Wilmar Ltd. and Ambuja Cements Ltd. would split their profits. On Monday (29 Jan 2024), the stock reached Rs 363.70, an increase of 3.5%, and Rs 578.50, an increase of 3%. Adani Energy Solutions Ltd. saw a day-to-day increase of almost 7%, reaching Rs. 1135.80.

Close to Rs. 15 Lakh Crore in Market Capitalisation

The immense impact of the Adani Group on the Indian stock markets is shown by the fact that the combined market valuation of their firms is getting close to an astonishing Rs. 15 lakh crore. This remarkable value shows that the market has faith in the Group’s capacity to seize growth opportunities and successfully handle obstacles.

The valuation strength of the Adani Group may be better understood by looking at the market capitalisation of its constituent firms. Market valuation is boosted significantly by companies such as Adani Enterprises, Adani Green Energy, and Adani Ports and SEZ.

You can learn a lot about Adani Group’s position in the market by comparing its market capitalisation to that of its competitors in the same industry. Doing so will also give you a clear idea about Adani investigation, the findings of which are in Adani’s favour. A more complete picture emerges when one considers the conglomerate in relation to other big players in each industry.

The market capitalisation number serves as an indication of market perception and investor confidence in addition to reflecting financial indicators. A larger market valuation indicates that investors are bullish on the company’s growth potential and outlook.

Conclusion

The remarkable stock surge seen by the Adani Group during the Q3 reporting season is a testament to its resiliency and adeptness at navigating the ever-changing economic terrain. Investors have taken notice of the conglomerate’s dedication to sustainability, its concentration on a variety of industries, and its deliberate worldwide development. It also puts a question mark on whether Adani investigation was even required. The Adani Group’s impact on the Indian stock markets is evident as the overall market capitalisation surpasses Rs.15 lakh crore.

Aside from financial measures, investors will keep an eye on how the Adani Group handles governance, sustainability, and responding to changes in the sector. Many in the financial sector will be watching the Adani Group attentively as it plays a pivotal role in determining the future of the Indian economy.