Adani group stocks in focus; Power, Enterprises, Total Gas rally up to 8%

Adani Enterprises, the group's flagship firm, plans to spend Rs 80,000 crore across businesses in the current financial year, according to reports

Shares of Gautam Adani group companies rallied up to 8 per cent on the BSE in Tuesday's intraday trade amid heavy volumes.

Adani Total Gas (8 per cent at Rs 932.20), Adani Power (up 7 per cent at Rs 635.85), Adani Energy Solutions (7 per cent at Rs 1,056.60), Adani Enterprises (5 per cent at Rs 3,040), Adani Green Energy (5 per cent at Rs 1,797.80), Ambuja Cements (5 per cent at Rs 617), Adani Wilmar (3 per cent at Rs 342.50), and ACC (4 per cent at Rs 2,468) rallied between 3 per cent and 8 per cent. In comparison, the S&P BSE Sensex was up 0.57 per cent at 73,193 at 02:57 pm.

However, despite today's outperformance, most of the Adani group stocks have underperformed the market in the past one month, falling up to 4 per cent, as against less than 1 per cent decline in the benchmark index.

Adani Enterprises, the group's flagship firm, having interests spanning from new energy to airports and data centres, plans to spend Rs 80,000 crore across businesses in the current financial year, PTI reported on Sunday quoting a senior company executive.

Separately, Ambuja Cements said the cement industry’s outlook remains positive driven by pre-election spending, ongoing government emphasis on infrastructure development, and sustained real estate activity. Adani Cement will have advantage of accelerated growth, cost leadership, synergy with group businesses which will help to sustain market leadership.

Shares of ACC and Ambuja Cements, thus, rallied 4 per cent and 3 per cent, respectively, in the intraday trade today.

With a strong focus on increasing overall market share (through strategic capacity expansion plans), further operational efficiencies and cash rich balance sheet, analysts at ICICI Securities believe that Ambuja Cements’ operational performance to improve substantially in the coming period.

Adani Power, meanwhile, rallied 7 per cent to Rs 635.85, and is trading close to its record high level of Rs 647 touched on April 4.

The average trading volume on the counter more-than-doubled with a combined 10.2 million equity shares changing hands on the NSE and BSE.

Adani Power is the largest private thermal power producer in India. The company has an installed thermal power capacity of 15,210 MW spread across eight power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, apart from a 40 MW solar power plant in Gujarat.