Adani Enterprises becomes second-most valuable Adani Group firm

Illustration by binay sinha
Adani Enterprises has now become the second most valuable company among the Gautam Adani-led Adani Group of companies as the stock hit a new high of Rs 1,694 after rallying 7 per cent on the BSE on Friday in intra-day trade. The stock was trading higher for the fifth straight day and has rallied 30 per cent during the week, as compared to 1.5 per cent rise in the S&P BSE Sensex.

Adani Enterprises, the flagship of Adani Group, surpassed the other group company Adani Total Gas to become the second-most valuable of the Adani Group companies. At 01:34 pm, Adani Enterprises was up 6.5 per cent at Rs 1,683.6, with a market capitalisation (market-cap) of Rs 1.85 trillion, the BSE data shows. Adani Enterprises is less than 10 per cent away from becoming the most valuable group company.

Adani Green Energy is the most valuable Adani Group company with the market-cap of Rs 1.99 trillion. Adani Total Gas has market-cap of Rs 1.81 trillion, followed by Adani Transmission (Rs 1.76 trillion), and Adani Port & Special Economic Zone (Rs 1.70 trillion), the BSE data shows.

Currently, Adani Enterprises (AEL), on a standalone basis, has mainly integrated resources management (IRM) / coal trading, power trading and mining services businesses. AEL, on a consolidated basis has diversified businesses which include solar cell and module manufacturing, agro-processing (including sale of branded edible oil), commodities trading, bunkering (fueling) of ships and shipping. AEL, through its subsidiaries, has invested significant funds in coal mining and related rail evacuation infrastructure in Australia and is currently incubating new businesses like airports, road development, water treatment plant, data centers etc.

In the January-March quarter (Q4FY21), AEL reported a 284 per cent year on year (YoY) rise in consolidated net profit at Rs 234 crore compared with a consolidated net profit of Rs 61 crore in the year-ago period. The consolidated revenue of the company during the quarter was at Rs 13,689 crore as compared with Rs 13,698 crore in the year-ago period. EBITDA (earnings before interest, taxes, depreciation, and amortisation) up 65 per cent YoY at Rs 1,068 crore from Rs 647 crore in a year ago quarter.

AEL said that Adani Airports was set to dominate the airports space with 200 million plus consumer base leveraging network effect and consumer mindset.

Meanwhile, last month, AEL announced that Adani Welspun Exploration struck substantial quantities of gas and condensate at three reservoir levels following the drilling of an exploratory well in the NELP-VII area (MB-OSN-2005/2) in March 2021. Adani Welspun Exploration is a joint venture company between Adani Group (65 per cent shareholding) and Welspun Enterprises Limited (35 per cent shareholding).

Preliminary analysis of the data indicates that the Block has a high potential of commerciality with Gas Initially Inplace Place (GIIP) Contingent resources (2C) to the tune of 514 billion cubic feet (BCF) with additional Prospective resources of 50 BCF. Additionally, seismic inversion, convential core and PVT studies of data collected from the discovery well are being analysed to assess the full potential of the find; preliminary results indicate potential upsides to estimated resources, the company said.



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