Business strategy

Adani Green Stocks Rally 110% in 2022 So Far; Becomes 7th Most-Valuable Company In M-Cap

The renewable energy company Adani Green Energy, one of the top multibagger stocks in 2022 has now become the seventh most valuable companies in terms of M-Cap and has also surpassed the market capitalization of the country’s largest public-sector lender State Bank of India. Adani Green shares are one of the multibagger stocks in 2022 as it has delivered around 110 per cent return to its shareholders in year-to-date time. Currently, the market capitalization of Adani Green is around Rs 4,49,255 crore whereas SBI’s market capital stands at around Rs 4,32,263 crore. Adani Green share price rally in last six months has helped Adani group company to surpass market valuations of ITC, Bharti Airtel, Kotak Mahindra Bank, HDFC Limited, Bajaj Finance and SBI. This is the first non-Nifty 50 company that has entered the elite club.

In the last one month, Adani Green shares have surged from around Rs 2665 to Rs 2856, logging around 7 per cent rise in this period. In year-to-date time, this multibagger stock has shot up from around Rs 1350 to Rs 2856 levels, clocking near 110 per cent rise this year. In last 6 months, this Adani group stock has surged from Rs 1230 to Rs 2856 apiece levels, appreciating to the tune of near 135 per cent in this period. However, in last one year, this multibagger stock has risen from Rs 1100 to Rs 2856, logging around 160 per cent rise in this period.

The staggering rally is a combination of Adani Group’s recent impetus on the green energy business in the backdrop of India’s commitment to becoming a net carbon zero economy by 2070 at the COP26 Summit last year.

While green energy companies in the past have fallen victims to stalled projects and poorly executed power purchase agreements, analysts believe strong execution skills, land procurement strategy and superlative capital management have ensured that project implementation is done before time, leading to a shorter payback period and faster cash flow generation.

Further, Adani Green has managed to get the backing of some of the biggest names on the planet on the project financing as well as capital raising front. The induction of Total as a strategic partner is now seen as the first step towards building investor confidence in Adani Green’s long-term potential, while the participation of marquee investors in its multi-million dollar green bond issues has further buttressed sentiment.

Last week, Adani Green posted over 16 per cent rise in its consolidated net profit to Rs 121 crore in the March quarter compared to year ago, mainly on the back of higher revenues. The consolidated net profit of the company was Rs 104 crore in the quarter ended on March 31, 2021, a statement showed.

Total income of the company in the March quarter also increased to Rs 1,587 crore, from Rs 1,082 crore in the same period a year ago.

“AGEL’s strong results are a validation of the Adani Group’s rapidly expanding focus on renewables,” said Gautam Adani, Chairman, Adani Group in the statement.

He also stated, “not only is our investment roadmap in the green energy value chain unmatched by any other portfolio of energy and utility businesses but we have also been consistently setting new industry benchmarks in efficiency, performance and capacity development. Through our domain expertise and our ability to execute projects rapidly, we are accelerating the pace of energy transition to honour India’s commitments to a sustainable future.

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