Adani group stocks jump up to 7%; rub-off effect after Helios' move?

Shares of Adani group companies rallied up to 7% in intraday deals today after Samir Arora's Helios Capital picked up stake in the flagship Adani Enterprises.

Samir Arora-led Helios Capital Management's bet on flagship Adani stock, Adani Enterprises, seems to be driving investor interest across group names on Friday, July 10, pushing the listed players up to 7 per cent higher in intraday deals. 

 

According to a Bloomberg report, the Singapore-based asset manager bought about 770,000 shares of Adani Enterprises in the second quarter across three of its funds, two of which were first-time buyers. Following this development, Adani Enterprises share price gained 2.8% to hit the day's high of ₹3,173 on the BSE. 

 

Traction was visible in other Adani group stocks too, as they rose up to 7%, with Adani Total Gas leading the charge. The stock hit the day's high of ₹749.95 as it gained 6.9% compared with its last closing price of ₹700.95. 

 

 

Adani Energy Solutions and Adani Green Energy added 4 per cent each to ₹1,683.15 and ₹1,546 respectively. Meanwhile, ACC, Adani Ports, Adani Power and Ambuja Cements gained between 2-3%. NDTV also traded in the green, up 1.8% on intraday basis. 

 

Historically, getting large funds to invest in the Adani group has been a bit difficult and holdings have largely been concentrated with few investors, said independent market analyst Ambareesh Baliga. "Now, if investors are buying independently, that is a positive sign," he added. 

 

Helios joins other investors, such as the Capital Group, GQG and SBI Funds Management in its bet on the Adani group stocks that are a play on India's economy.

 

Arora, who heads Helios Capital, earlier told Bloomberg that easing of Adani’s legal and reputational overhang and the group’s businesses in ports and emerging energy ventures strengthen the case for further investment. “We have always liked their execution; we own Adani Ports & Special Economic Zone, so we know that,” said Arora, as per the report. 

 

The group stocks have witnessed a relief rally recently after reaching a US settlement over sanctions-related charges and resolving corruption allegations. 

Adani group stocks outlook: Are they a good buy?

Billionaire Gautam Adani-led ports-to-coal conglomerate has expanded into several businesses such as data centres, airports, defence, among others, promising long-term growth potential.

 

Kranthi Bathini of Wealthmills Securities said that Adani Group shares are high beta in nature and on a longer-term basis, there is significant embedded value in these businesses, especially in Adani Enterprises as it incubating several businesses. 

 

"Given the way the group has climbed the wall of worries, investor confidence and interest have been rising. The odds are increasingly coming in favour of the group," he added.

 

Commenting on whether Adani stocks are worth buying, Baliga said that the group is now closely linked to India's economy. "If you're bullish on the Indian economy, you really can't afford not to be bullish on the Adani Group."

 

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