Adani Enterprises, Adani Power, Adani Ports, Adani Green Energy: Adani stocks rally up to 16% amid Modi rally. Here's why

As the BSE Sensex soared over 2,600 points in what can be dubbed as 'Modi rally' today, a host of Adani group shares hit 10 per cent circuit limits on hopes the political continuity, as suggested by exit polls, would help capex-related stocks sustain high valuations. A few Adani group stock surged up to 16 per cent, as the Adani group market capitalisation (m-cap) hit the pre-Hindenburg Research levels. Adani Enterprises climbed 9.72 per cent to hit a high of Rs 3,743. Adani Ports and Special Economic Zone (APSEZ) was up 9.55 per cent at Rs 875. Adani Power soared 15.64 per cent to Rs 875.

Adani Energy Solutions Ltd advanced 9.38 per cent to Rs 1,228.10. Adani Green Energy Ltd added 9.65 per cent to Rs 2100.10. Adani Total Gas Ltd surged 15.28 per cent to Rs 1,197.95.

Adani Wilmar Ltd added 6.94 per cent to Rs 380.55. ACC and Ambuja Cements gained 5-7 per cent.

"Exit polls for the 2024 Lok Sabha elections suggest a comfortable majority for the BJP-led NDA, led by gains in East and South India and continued dominance in its traditional strongholds. We expect (1) the equity market to be further energized by the polls (although the numbers are similar to pre-poll surveys) and (2) the government to continue with its economic agenda," Kotak Institutional Equities said in a note.

Kotak said the government will continue its focus on key areas such as energy transition, infrastructure development and manufacturing.

"We note that the government has already executed the bulk of the required reforms for incentivising private investments. In 2019, the BJP’s 100-day economic agenda focused on boosting investments," it said.

Jefferies in a recent note said the Adani group is back on expansion spree and eyeing $90 billion capex over next decade. It said Adani Enterprises is amid scaling its captive manufacturing capacity towards starting Green Hydrogen production by FY27; Navi Mumbai Airport appears likely to commission by 4QFY25; Data Center projects are scaling up.

In the case of Adani Ports, it recently published its 5-year business road map, targeting 18 per cent Ebitda CAGR in FY24-29E.

"Ports Ebitda is expected to rise at 16 per cent CAGR led by expansion and ramp-up with the company targeting 1bnt cargo volume by 2030 (15 per cent CAGR)," Jefferies said.

Adani Green raised its 2030 power capacity target from 45 GW to 50 GW now including 5GW Pumped hydro. Adani Total Gas plans to grow new business segments including LNG station network for transport and mining sector and EV charging facilities.

"Adani Wilmar: Focus on distribution expansion, ramping alternate channels and improving mix of premium brands," Jefferies siad.