Adani Enterprises jumps on plan to start Carmichael project in October

Adani Enterprises rose 8.37% to Rs 118.50 at 11:46 IST on BSE on reports the company plans to begin work in October to build the controversial Carmichael coal project in Australia.

Meanwhile, the S&P BSE Sensex was up 155.81 points, or 0.49% to 31,751.87.

On the BSE, 7.62 lakh shares were traded in the counter so far, compared with average daily volumes of 9.58 lakh shares in the past one quarter. The stock had hit a high of Rs 119.10 and a low of Rs 115.05 so far during the day. The stock hit a 52-week high of Rs 160.60 on 18 April 2017. The stock hit a 52-week low of Rs 58.35 on 9 November 2016.

The stock had underperformed the market over the past one month till 24 August 2017, falling 22.20% compared with 2.43% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 5.53% as against Sensex's 1.83% rise. The scrip had outperformed the market in past one year, rising 48.98% as against Sensex's 13.51% rise.

The large-cap company has equity capital of Rs 109.98 crore. Face value per share is Re 1.

According to media reports, the Carmichael coal project has been delayed for years by court challenges from environment protection groups and indigenous groups concerned about climate change, and the impact on native land and water supply, but those challenges have been rejected.

The company plans to make first shipment of coal from its Australia mine in March 2020. Adani, which uses coal to generate electricity for its power business in India, is reportedly trying to line up funding for the project by March 2018. Accommodation at the Carmichael camp reopened last week, setting the company on course to start work on the mine and rail project, reports said.

On a consolidated basis, net profit of Adani Enterprises declined 61.77% to Rs 141.15 crore on 1.57% decline in net sales to Rs 8778.51 crore in Q1 June 2017 over Q1 June 2016.

Adani Enterprises, the flagship entity of the Adani group, started as a trading firm dealing in myriad commodities. Over a period of time, coal became its main stay and after it emerged as India's leading coal importer, it made forays into multiple sectors as forward and backward integration.

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