A multi-bagging stock story! Adani Green becomes the 10th most valued company

On Dalal Street, Adani Green closed at ₹2701.55 apiece skyrocketing by ₹377.60 or 16.25%. At the current stock price, the company’s market valuation was ₹4,22,526.28 crore.

During the trading hours, the shares have hit a new 52-week high of ₹2788.70 apiece before correcting.

At a market cap of over ₹4.22 lakh crore, Adani Green has emerged as the tenth most valued company on exchanges. This would also be the only non-Sensex company to enter the top 10 list of biggest market capitalization on BSE.

Adani Green outrun telecom giant Bharti Airtel to grab the tenth spot. Till last week’s trading session, Airtel held the tenth rank in the top 100 companies by market capitalization.

Bharti Airtel shares on BSE closed at ₹757.90 apiece down by ₹4.25 or 0.56%. The shares have touched an intraday high and low of ₹765.15 apiece and ₹755.35 apiece. At the closing price, the telco’s market cap is ₹4,16,240.75 crore.

Last week on Friday, Airtel’s market cap was at ₹4,18,574.86 crore at ₹2323.95 apiece.

That said, while Airtel recorded a profit booking today, on the other hand, Adani Green was in a buying frenzy.

Adani Green is also a multi-bagger as it has given three-digit growth in percentage terms in a year. Taking into consideration today’s 52-week high, then the company’s shares have skyrocketed by a breathtaking nearly 157% on D-Street. The shares were at ₹1085.8 apiece on April 12 last year.

Hence, this year, where markets witnessed steep correction due to ongoing inflationary pressure, third wave, soaring oil prices, higher commodity prices, rise in food prices, and not to forget the Russia-Ukraine war that escalated in late February have added to the woes heavily. Amidst all of this, Adani Green turned among top picks in the green energy segment.

Riding on the back of stellar performance in Adani Group stocks including the multi-bagger Adani Green, chief Gautam Adani’s net worth has moved upward surpassing the wealth of Steve Ballmer former chief executive officer of Microsoft, and Larry Ellison co-founder of Oracle Corporation.

Gautam Adani ranks 8th in the Bloomberg Billionaire Index with a net worth of $110 billion, while Ballmer and Ellison held the ninth and tenth spot with a wealth of $104 billion and $102 billion. Adani’s wealth rose by a whopping $3.09 billion in the last change, while year-to-date, his net worth has zoomed by $33 billion.

The only Indian businessman who is competing with Adani would be Mukesh Ambani, the chief of RIL which is the biggest company in terms of market capitalization. Ambani holds 11th rank with a net worth of $97.5 billion.

Adani’s portfolio companies aim to invest over $50-70 billion in the renewable energy value chain and have committed 70% of planned CAPEX until 2030 to the energy transition.

In the latest development, Abu Dhabi-based International Holding Company PJSC (IHC) is planning to invest $2 billion as primary capital in three Adani portfolio companies – Adani Green Energy (AGEL), Adani Transmission (ATL), and Adani Enterprises (AEL).

IHC is going to invest ₹3,850 crore in Adani Green, while ₹3,850 crore will be pumped in ATL and ₹7,700 crore will be infused in AE. The three Adani companies – AGEL, ATL, and AEL – are market leaders in their business sectors and span the Adani Group’s green portfolio. Every one of these three businesses has the core aspects of ESG woven into their operations.

As of December 2021, the company’s sale of energy increased by 67% YoY to 6,456 million units, while solar CUF improves by 50 bps YoY to 22.6% and wind CUF improves by 470 bps YoY to 33.2%. Further, EBITDA from power supply was up by 56% YoY to ₹2,474 crore with a 160 bps improvement in EBITDA margin to 92.4% in 9M FY22.

In the top 10 most valued companies listed, on BSE, the Reliance Industries holds the top spot with a valuation of ₹17,65,503.82 crore, while TCS followed with a valuation of ₹13,52,531.75 crore, and HDFC Bank holds the third spot at ₹8,29,723.84 crore.

Other most valued companies are – Infosys ( ₹7,43,183.48), ICICI Bank ( ₹5,27,898.16), HUL ( ₹5,08,475.05), SBI ( ₹4,59,572.87), Bajaj Finance ( ₹4,44,173.16 crore), and HDFC ( ₹4,39,449.99 crore).