This Adani group stock has zoomed 1250% in a year; surpasses ONGC in m-cap

The company is scheduled to announce its April-June quarter (Q1FY21) result on Friday, September 11.

Shares of Adani Green Energy (AGEL) hit a fresh record high of Rs 619, up 5 per cent on the BSE in intraday trade on Thursday, ahead of its April-June quarter (Q1FY21) result due on Friday, September 11.

The stock of Gautam Adani-led Adani Group renewable energy company has rallied 1,259 per cent in a year - from Rs 45.55 on September 9, 2019, as compared to a 3.5 per cent rise in the S&P BSE Sensex.

The sharp rally in the stock has helped the company surpass state-owned oil exploration & production company Oil and Natural Gas Corporation (ONGC) in terms of market capitalisation (m-cap). At 10:14 am, with Rs 93,692 crore m-cap, AGEL stood ahead of ONGC, which has a m-cap of Rs 92,905 crore. ONGC, on the other hand, has slipped 44 per cent in the past one year due to poor earnings.

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 on September 1, 2020, informed that Mercom Capital has ranked the Adani Group as the number 1 global solar power generation asset owner in terms of operating, under construction, and awarded solar projects.

Adani’s renewable energy (RE) portfolio exceeds the total capacity installed by the entire United States solar industry in 2019 and will displace over 1.4 billion tons of carbon dioxide over the life of its assets, the press release said.

“AGEL is one of the largest renewable companies in India, with a current project portfolio of 5,990 MW (2,595 MW is operational and 3,395 is under construction). In addition to this, AGEL is L1 in India’s largest solar manufacturing tender and expects an award of 8GW manufacturing linked projects,” the company said in the 2019-20 annual report.

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, it said.