Adani Group Stocks Show Promising Growth, Aim for Strong Earnings: Here's Why

Adani Group stocks are on the rise, driven by ambitious earnings targets and development in sectors like airports and energy. Find out the key highlights.

Adani group stocks rise
  • Adani Group targets 20% YoY earnings increase, aiming for Rs. 90,000 crore EBITDA in 2-3 years.
  • Most Adani Group stocks experience gains, except for Adani Green Energy.
  • Experts advise caution amid potential volatility, recommend specific stock selection.
  • Anticipated growth in sectors such as airports, cement, renewables, and transportation drives positive outlook.

In the early trading session on Monday, 26 June, most stocks of the Adani Group displayed positive momentum, driven by reports indicating that the conglomerate is targeting a 20% year-on-year rise in pre-tax earnings. This ambitious goal aims to achieve a robust Rs. 90,000 crore EBITDA within the next two to three years, propelled by the impressive development across various sectors within the group, including airports and energy.

Also Read: Adani Stocks in the Limelight as the Group Plans to Raise $2 Billion in Debt

Stock performance and analyst insights

Several Adani Group stocks experienced notable increases, ranging from 0.8% to 4%. These stocks included Adani Enterprises Ltd., Adani Ports & Special Economic Zone Ltd., Adani Transmission Ltd., Adani Power Ltd., Adani Total Gas Ltd., and Adani Wilmar Ltd. However, Adani Green Energy Ltd., saw a decline in its stock price and traded in the negative zone.

Experts have warned about the potential volatility in the near future due to regular news updates regarding the Adani Group's stocks. It is advised to exercise caution and carefully select specific stocks within the group rather than engaging in aggressive short-term investments.

Also Read: Looking For Quick Returns In The Short Term? These Stocks Can Deliver 12% To 28% On Your Investment

Anticipated growth in various sectors

The Adani Group anticipates significant growth in sectors such as airports, cement, renewables, solar panels, transportation and logistics, power, and transmission. Additionally, the group's infrastructure investments are expected to yield fruitful results and generate substantial cash flow in the coming years.

Strong asset base and financial performance

The Adani Group has recently made substantial investments in ports and accomplished major projects in the renewable energy, transportation, and ports sectors. Airports and renewables have also demonstrated higher cash flows. The group's well-established asset base, developed over three decades, serves as a resilient critical infrastructure, ensuring strong asset performance throughout their lifecycles. In the fiscal year 2022-2023 (April 2022 to March 2023), the group's listed portfolio EBITDA surged by 36% to Rs. 57,219 crore. The core infrastructure companies, constituting 82.8% of the portfolio, including energy, transportation, logistics, and Adani Enterprise Ltd.'s infrastructure projects, witnessed a 23% year-on-year increase in EBITDA, amounting to Rs. 47,386 crore.

Debt repayment and financial stability

Earlier this month, in response to a negative report from a US short seller, the company repaid loans worth USD 2.65 billion, completing a prepayment schedule aimed at reducing its total debt burden. This move showcases the group's commitment to maintaining a strong financial position and addressing concerns raised by market participants.

The Adani Group's optimistic outlook, supported by its strategic investments and focus on diverse sectors, has garnered investor confidence and contributed to the positive performance of most Adani Group stocks in the early trading session. However, given the potential for volatility, market participants are advised to carefully analyse their investment choices and adopt a long-term perspective.




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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.





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