Adani Energy, Ambuja Cements: Adani group shares trade firm in weak market

Adani Enterprises and Adani Green Energy have touched their respective 52-week highs in intra-day trade today.

Shares of Gautam Adani Group companies are trading higher by up to 7 per cent on the BSE in Monday’s intra-day trade in otherwise a weak market amid heavy volumes.

Ambuja Cements (Rs 614.90) and Adani Ports and Special Economic Zone (Rs 1,340.35) hit their respective record highs; while Adani Enterprises (Rs 3,332) and Adani Green Energy (Rs 1,998) have touched their respective 52-week highs in intra-day trade today. These stocks are trading higher in the range of 2 per cent to 3 per cent.

Besides these four stocks, Adani Energy Solutions has rallied 7 per cent to Rs 1,155.20, followed by Adani Total Gas (6 per cent at Rs 1,090) and Adani Wilmar (4 per cent at Rs 408.70). In comparison, the S&P BSE Sensex was down 0.30 per cent at 72,906 at 01:11 pm.

Moody’s Investors Service on February 13, revised the outlook on four Adani Group companies to ‘stable’, a year after revising it to ‘negative’ following a unverified report by US-based short seller, Hindenburg Research. READ ABOUT IT HERE

The global ratings agency changed the outlook to ‘stable’ on Adani Green Energy, Adani Electricity Mumbai, Adani Transmission, and Adani Energy Solutions as the financial metrics of these companies improved significantly in the past 12 months.

Since February 2023, Moody's said the group completed several debt transactions, including refinancing as well as obtaining new loan facilities, demonstrating its continued access to debt capital at a reasonable cost.

Cementing gains

Meanwhile, among the individual stocks, Ambuja Cements hit new high of Rs 614.90, zooming nearly 50 per cent in past three months. On Friday, the stock had surpassed its previous high of Rs 598 on December 9, 2022.

Ambuja has lined up massive investments in green power (WHRS, Solar, Wind), AFR handling, railway infrastructure and fly ash handling systems amongst others. These are expected to result in sizeable improvement in profitability/EBITDA and returns to stake holders, the company said.

According to the management, the cement Industry is expected to have a demand growth between 7 per cent and 8 per cent because of investments in infrastructure and real estate projects. India’s per capita consumption of 272 Kg as compared to the global average of ~ 550 kg provides a sizeable potential for expansion of the cement industry.

Higher consumption of domestic coal helped in improving coal cost and the trend is expected to continue. The opportunity buy of low cost petcoke in the past few weeks will help to further optimise fuel costs in the coming quarters and this augurs well in our cost optimisation journey, Ambuja said while announcing December quarter (Q3FY24) results on January 31.

On a high

Shares of Adani Enterprise (AEL), the Group flagship company is trading at its highest level since January 2023. It had hit a record high of Rs 4,189.55 in December 2022.

The emerging core infra businesses under the incubation pipeline of AEL have shown strong operational performance and consistently reflected significant contribution to the growth journey during the last 9 months of this fiscal year.

The company's incubating businesses, comprising green hydrogen ecosystem, airports and roads contribute 45 per cent of the overall EBITDA, the company said. Greenfield-Navi Mumbai project is on track for completion in December this year.

In Adani New Industries’ (ANIL) green hydrogen ecosystem, the company’s target of 10 GW of green hydrogen integrated manufacturing ecosystem is progressing well.

The company in Q3 earnings call said it is now ready to commission India's first ingot and wafer line of 2 GW, which will go into the solar manufacturing businesses of AEL’s- already established 4 GW module capacity. “We are also ramping up our recently commissioned wind manufacturing. We produced 15 sets and have an order book of 142 sets. ANIL has received the letter of award from Solar Energy Corporation of India for setting up annual electrolyser manufacturing capacity of 198.5 MW,” AEL said.