Adani Green becomes first Adani group company to cross Rs 1-trillion m-cap

Shares of Adani Green Energy (AGEL) were locked in 5 per cent upper circuit at their fresh record high of Rs 670.65 on the BSE on Tuesday, thereby entering the elite club of firms with Rs 1 trillion market-capitalisation (m-cap). The firm joins the ranks of Titan Company, UltraTech Cement, Sun Pharmaceutical Industries, Larsen & Toubro (L&T), and Avenue Supermarts.

The company also became the first Gautam Adani-led Adani Group company to cross Rs 1-trillion in m-cap.  Adani Ports and Special Economic Zone, the other group company, had seen its m-cap touch a record high of Rs 93,607 crore in intra-day trade on January 24, 2018.

At 09:27 am, AGEL's m-cap stood at Rs 1.05 trillion, the BSE data shows. The company was at number 25th position in overall m-cap ranking, ahead of the state-owned companies such as Oil and Natural Gas Corporation (ONGC), NTPC, Power Grid Corporation and Hindustan Zinc.

In the past year, AGEL's share price has rallied 1,230 per cent against 4 per cent rise in the S&P BSE Sensex. AGEL is the largest solar company in the world with 12+ GW of operating, in-construction, and awarded solar parks. The company develops, builds, owns, operates, and maintains utility-scale grid-connected solar and wind farm projects.

The company reported a profit before tax of Rs 51.27 crore during the first quarter of FY21 ended June, as against loss of Rs 131.24 crore during the same period in FY20. The total income of the company during Q1FY21 rose 30 per cent year on year to Rs 878 from Rs 675 crore in the same period last year.

AGEL, in its statement on BSE, said the company has progressed to become the largest solar power producer in the world, having won the world’s largest solar bid of 8 Gw. “With this, we have moved closer to our goal of commissioning renewable capacity of 25 Gw by 2025,” it said.

“The growing domestic and international demand for cleaner and greener technology has accelerated the green energy transition in the country and we are prepared to lead this change. This quarter, we have cemented our place in the global renewable space by winning the world’s largest solar bid and with this we have been ranked as the largest solar power developer in the world by Mercom Capital,” said Gautam Adani, Chairman, AGEL.

The company is ideally positioned to deliver above-average growth attributed to the high growth potential of the renewable industry. The Indian Government has revised the target for renewable generation capacity to 450 GW by 2030 giving a boost to large scale strategic players in the industry.

The competitive intensity remains low due to lack of large scale integrated players in the industry, cost of capital - wider pool for sources of capital at the competitive rate available to large scale integrated players and secured rights for large scale land with high solar / wind resource and transmission connectivity; thus, low viability for new and small-scale players in the sector, AGEL said in the 2019-20 annual report.