Adani Green climbs the ladder to become 7th most valued firm, outruns SBI

Today, while markets crashed steeply with Sensex even erasing 57,000 and Nifty 50 struggling to retain the 17,100-mark, the Adani Green shares outperformed not just these benchmarks but also counterparts and other indices.

Adani Green shares closed at ₹2968.10 apiece up by ₹103.35 or 3.61% on BSE. The shares hit a fresh historic high today at ₹3013.20 apiece.

With the latest record high, Adani Green shares are a multi-bagger with gains of more than 185% in a year. The shares were at ₹1,055.7 apiece on April 19 last year.

At the closing price, Adani Green’s market cap is at ₹4,64,215.08 crore. This takes the company to the seventh spot on the list of the top 10 most valued companies on BSE. 

SBI shares today closed at ₹509.40 apiece down by 1.6% on BSE. At the closing price, the market cap of the bank stood at ₹4,54,619.71 crore.

That said, SBI slides a rank down on BSE’s top market cap companies and now holds the eighth rank.

Adani Green now follows giants HUL, HDFC Bank, RIL, TCS, HDFC Bank, and Infosys.

In the list, rank-wise, RIL continues to hold the top spot in most valued companies with a market cap of ₹17,21,099.16 crore on Monday, followed by IT-giant TCS whose valuation is at ₹12,91,077.98 currently, and private sector lender HDFC Bank who holds a market cap of ₹7,73,797.06 crore. Infosys at fourth rank has a valuation of ₹6,82,101.64 crore, ICICI Bank at fifth rank holds a cap of ₹5,27,264.37 crore, and HUL at the sixth spot has a market valuation of ₹5,11,447.28 crore. These market caps are on the closing price of April 18 on BSE.

Adani Green entered the big boys club of most capitalised companies on D-Street last week. After outrunning biggies like Bharti Airtel, HDFC, and Bajaj Finance – Adani Green was slightly away from SBI who had held the seventh spot till April 13. But that has changed now!

On April 13, the gap between Adani Green and SBI’s market valuation stood at ₹13,797.66 crore. On this day, on BSE, the SBI market cap was at ₹4,61,848.65 crore while Adani Green held a valuation of ₹4,48,050.99 crore.

While Adani Green witnessed a strong rally on the back of, large deals, and robust growth in provisional operational performance for Q4FY22, on the other hand, a selloff in SBI was due to a broader bearish markets tone in the banking sector amidst the Q4 earnings season.

BSE Bankex and IT were the worst hit on Monday’s trading session with a downside of over 725 points and 1,646 points respectively. On the other hand, utility stocks were top picks today including Adani Green. BSE Utilities surged by nearly 2% with outperformance in stocks like GIPCL, NLC India, NTPC, Adani Power, JSW Energy, NHPC, Torrent Power, BF Utilities, and Adani Green in the range of 4-10%.

In Q4FY22, Adani Green’s total operational capacity rises by 56% yoy to o 5,410 MW. In the quarter, sales of energy registered a growth of 84% to 2,971 million units against 1,614 units in the corresponding quarter last year – backed by robust performance in both Solar and Wind portfolios.

Adani Green is the first Adani Group company and also a non-Sensex company to enter the top market capitalised companies list.

After trading hours, BSE Sensex settled at 57,166.74 down by 1,172.19 points or 2.01%. The benchmark has touched an intraday low of 56,842.39. Meanwhile, the Nifty 50 ended at 17,173.65 lower by 302 points or 1.73%, after touching the day’s low of 17,067.85.

On the market crash today, Vinod Nair, Head of Research at Geojit Financial Services said, “Unfavourable start to earnings season in heavyweight stocks of IT and banking sector led to heavy sell-off. Lower-than-expected results prompted the market to worry about the headwinds faced by the IT sector like attrition, wage inflation, lower utilization, and cut in IT spending by industries due to geopolitical and macro issue. The degree of downfall is high because the sector was trading at high valuation and risk of a downgrade in outlook has increased”

Further, S Ranganathan, Head of Research at LKP securities said, “Benchmark Indices never really recovered during the day from the twin blow of the IT Index & the Bank Nifty with rising oil prices and inflationary pressures adding to the woes. The broader markets did see buying interest in select pockets like Defence, Paper & Fertilisers on the back of continued positive Tailwinds”