A 106-page report published by the US-based short-seller Hindenburg Research is now well and truly in the past for select Adani Group stocks as three out of 10 listed stocks have moved smartly ahead, despite massive volatility in the past 12 months. Meanwhile, the group’s combined market capitalisation, which hit a low of Rs 6.81 lakh crore after the report, is now hovering at around Rs 14.5 lakh crore. The figure stood at Rs 19.19 lakh crore on January 24, 2023, the day Hindenburg’s report was released.
Data shows that shares of Adani Power have gained the most at 89% in the last one year till January 24, 2024. Adani Ports and Special Economic Zone and Ambuja Cements gained 47 per cent and 6 per cent, respectively, during the same period.
Brokerage Motilal Oswal Financial Services is bullish on Adani Ports (APSEZ) with a target price of Rs 1,410. Shares of the company traded at Rs 1,188 in the afternoon trade on January 29.
“Going forward, APSEZ targets to become India’s largest integrated transport utility and world’s largest private port company by 2030. APSEZ has a diversified cargo mix and is looking to increase cargo share of port on east coast. The operational ramp-up at the recently acquired ports is expected to drive a 14 per cent growth in cargo volumes over FY23-26. This would drive a revenue/EBITDA/PAT CAGR of 19 per cent/18 per cent/17 per cent over FY23-26,” Motilal Oswal Financial Services said in a report.
On the other hand, other group stocks including Adani Green Energy, Adani Enterprises, Adani Total Gas, Adani Energy Solutions, New Delhi Television, ACC and Adani Wilmar have soared somewhere between 22 per cent and 275 per cent from their respective 52-week levels. However, these stocks are still on the course to see the levels seen in January 24, 2023. Global financial services firm Cantor Fitzgerald on January 28 initiated coverage on Adani Enterprises with a target price of Rs 4,368, indicating an upside of 44 per cent against the current market price of Rs 3033. Share of the company traded at Rs 3,442 just before the Hindenburg Research report last year.
Cantor Fitzgerald believes that Adani Enterprises (AEL) is at the core of everything India wants to accomplish. “AEL is the most relied company for bringing energy resources into India; it owns eight airports that accounts around 25 per cent of airline passenger traffic and 33 per cent of cargo. It is also building several data centers throughout the country, it is contracted to lay more than 5,000 km of roads and is an integral manufacturer of solar and wind equipment for India’s renewable energy ambitions,” Cantor Fitzgerald said in a report.
Latest shareholding data further showed that domestic investors are bullish on Adani Group. For instance, mutual funds have raised their stake in Adani Enterprises to 1.49 per cent as of December 31, 2023 against 1.19 per cent in December 2022. They also raised their stake in ACC, Adani Energy Solutions, Adani Green, Adani Power and Adani Wilmar during the same period.
On the other hand, retail investors raised their stake in ACC, Adani Energy Solutions, Adani Enterprises, Adani Green Energy, Adani Ports and Special Economic Zone, Adani Total Gas, Adani Wilmar, Ambuja Cements and New Delhi Television.
Brokerage Antique Stock Broking maintained a ‘Buy’ call on ACC post Q3 results. “ACC’s Q3FY24 EBITDA surprised positively rising 65 per cent QoQ to Rs 900 crore-20 per cent-30 per cent above our/consensus estimates led by higher volumes and lower costs. We increase our FY24-FY26 EBITDA estimates by 6-10 per cent and raise our target multiple to 11x (10x earlier) to factor higher profitability. We revised the target price to Rs 3,000 (Rs 2,550 earlier). Valuations remain attractive at around 9x FY26E EV/EBITDA,” the brokerage said in a report.
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