Exit poll rally: Adani group value soars Rs 1.6 trn to near Rs 20 trn

Reaches pre-Hindenburg level but still 15% below all-time highs

The market capitalisation of the Gautam Adani-led group neared Rs 20 trillion on Monday as investors lapped up shares of all the 10-listed companies belonging to the ports-to-airports conglomerate.

This comes amid the euphoria triggered by the exit polls.

Shares of group companies soared between 3.5 per cent and 15.5 per cent, adding Rs 1.6 trillion in a day to the total market capitalisation of Rs 19.43 trillion—highest since January 18, 2023.

The Adani group’s current value is only 15 per cent below its all-time high of Rs 23 trillion on September 20, 2022. Its value is above the levels seen before US-based short seller Hindenburg Research released its report on January 24, 2023, alleging malpractices. Following which, the group’s mcap had plunged to Rs 6.82 trillion on February 27, 2023.

 

Flagship Adani Enterprises, engaged in mining and coal, added 7 per cent while Adani Ports rose 10 per cent. Both the companies touched their 52-week high on Monday. Ambuja Cements, too, peaked to its all-time high with 5.7 per cent gain on Monday’s trade.

On Friday, the group had added over Rs 83,000 crore in market cap.

The latest gains come on the back of exit polls predicting continuance of the National Democratic Alliance (NDA) with a two-third majority.

Exit polls, which came after the final phase of voting on Saturday, are predicting the NDA will win between 316 and 400 seats in the 543-member Lok Sabha.

The rally in the conglomerate group also followed a bullish outlook by brokerage firm Jefferies on the back of strong financial performance in FY24.

The brokerage house has given a price target of Rs 3,800 for Adani Enterprises and Rs 1,640 for Adani Ports with ‘buy’ recommendation.

For Adani Energy Solutions and Ambuja Cements, the brokerage has set a target of Rs 1,365 and Rs 735, respectively, indicating an upside of 10 per cent to 11 per cent from the current levels.

Barring Adani Energy Solutions, Adani Total Gas and Adani Wilmar, most other group stocks have recouped most of the losses since the Hindenburg report.