Adani Enterprises becomes the 4th firm in the group to reach Rs 3 trillion in m-cap

2 Aug 2022 , 12:31 PM

The fourth member of the Gautam Adani Group to surpass a market capitalization of Rs3 trillion is Adani Enterprises (AEL) (market-cap). In intraday trading on Tuesday, the stock rose 1% on the BSE to a new record high of Rs2,693.30.

As opposed to the S&P BSE Sensex’s 9.4% increase during the past month, the stock price of AEL has increased by 20%. Furthermore, during a period of six months, the stock has surged 52% compared to a 3% fall in the benchmark index.

One of the companies with the highest rate of growth and the broadest range of goods and services is AEL. The firm acts as an incubator, launching new ventures in the transportation and logistics, energy, and utility sectors, as well as placing a greater emphasis on direct-to-consumer enterprises.

Through Adani New Industry Limited, AEL is driving a decarbonization effort for transportation and industries (ANIL). Other next-generation strategic business initiatives by AEL are focused on managing airports, roadways, data centers, and water infrastructure, all of which have substantial potential to create value.

According to exchange statistics, at 11:25 AM, with a market capitalization of Rs3.07 trillion, it was ranked 18th out of all the BSE listed businesses in terms of market capitalization. Adani Transmission now ranks first in the group with a market capitalization of Rs3.77 trillion, followed by Adani Green Energy (Rs3.62 trillion), and Adani Total Gas (Rs (Rs3.54 trillion).

The AEL board of directors will meet on August 4th, 2022, to discuss and approve the company’s unaudited financial statements for the quarter ended June 30, 2022 (Q1FY23) and to raise money through the issue of debt instruments.

AEL’s net profit for the January-March quarter (Q4FY22) was Rs 304 crore, 30% more than for the same quarter in FY21 due to increased results from both new and existing businesses. EBITDA increased 44% year over year (YOY) to Rs 1,538 crore in Q4 FY 22 due to a larger contribution from the airport’s division as a result of MIAL consolidation. The Integrated Resources Management (IRM) segment’s higher pricing led to the enhanced realization, which raised total income by 84% YoY to Rs25,142 crore.

The management anticipates an exciting future for the company’s new companies, including networked airport eco-systems, road and water infrastructure, and green data centers. AEL’s existing businesses have improved their performance. Additionally, the management had stated that the company’s emphasis on new energy companies and digital consumer platforms, together with its capacity to execute, will increase the value of the stock for shareholders.