Adani Buzz: 6 Out Of 10 Adani Stocks Rise YTD; To Invest Rs 1.2 Lakh Crore In FY25, Big Push On Green Energy

Adani Group stocks will be in focus during the trading week from March 18th to 22nd, for a host of reasons. After a bearish week, sentiments in billionaire Gautam Adani-backed port-to-energy empire most likely to get a big boost as sources said that the Group is planning to invest a whopping Rs 1.2 lakh crore in the next fiscal. 70% of this investment is said to be for the green energy business.

The development comes after a Bloomberg report said that the US has widened the scope of its investigation against the conglomerate's chief Gautam's conduct and whether Adani Group was engaged in any bribery. Adani has denied the allegations.

Adani Group's Big Investment For FY25:

Sources told GoodReturns.In that Adani, the poster boy of Indian infrastructure has made an investment plan of $14 billion (Rs 1.2 lakh crore) in FY25 through its portfolio of 11 listed companies. FY25 projected CAPEX is up by 40% than its capex for FY24, which is estimated at $10 billion.

As per the sources, more than 70% will be towards green energy. While the majority of the remaining investment will go for fast-growing Airports and Ports businesses. These investments will set the stage for exponential profit growth.

The infra giant with showcase projects like Navi Mumbai Airport, Ganga Expressway, the world's largest renewable park at Khavda and Mundra Port has committed a $100 billion investment over the next 7-10 years. This investment will play a pivotal role in transforming India's energy and transportation landscape.

Further, with a strong emphasis on green energy transition, it will be allocating more than 70% of this $100 billion to its green businesses including renewable power, green hydrogen, green evacuation transmission lines etc. The conglomerate is building the world's largest renewable park at Khavda, Gujarat, spanning over 530+ square km area-five times the size of the city of Paris.

Also, a large portion of total investments is earmarked for expansion and development of its fast-growing airports business and ports business. With a portfolio boasting 8 airports including the upcoming Navi Mumbai airport and 14 domestic ports, Adani wants to further solidify its presence in these sectors.

With higher investments, it is setting the stage for exponential growth in the coming years said the source.

In February, as per the media statement, Adani Group said that its increasing cashflows and its robust credit profile have set the stage for unrivalled 'Green Investment.'

During the third quarter of FY24, the conglomerate reported record quarterly EBITDA growth of 63.6% year-on-year, taking its twelve-month EBITDA to an all-time high of USD 9.5 billion(INR 78,823 crore) in CY23, thanks to its investments in previous years. The net debt to EBITDA at the end of September was 2.5x, which is expected to further reduce by the end of FY24, due to strong growth.

Adani Stocks YTD Performance:

Adani stocks are still recovering from the bombshell short-seller Hindenburg's report that was released in late January 2023. From an over 100 billion dollar market rout in early 2023 to new allegations and being under the regulatory radar, Adani stocks had been on a roller coaster ride. The start of 2024 has been broadly positive, as optimism in Adani Group escalated after global investors showed faith in the fundamentals and growth trajectory of the conglomerate.

In the trading week from March 11th to 15th, all Adani Group stocks were in red. The flagship company, Adani Enterprises dropped by 3.7% in the last trading week, while cash-cow Adani Ports shed 4%, Adani Power dived by 6.6%, and Adani Green Energy slipped by 0.72%. These are Adani's top four most valued stocks. Other stocks such as Adani Energy Solutions, Adani Total Gas and Adani Wilmar plunged by 2% to 5%.

Meanwhile, cement stocks ACC and Ambuja Cement tumbled by 6.12% and 0.8% respectively. Media stock NDTV took the most hit in percentage terms with a downfall of 11.23% on BSE.

However, 6 out of 10 Adani stocks are in green year-to-date.

So far in 2024, Adani Enterprises rose by 7.4%, while Adani Ports recorded the highest upside among its siblings with a surge of 22.4% followed by Adani Green Energy which gained by 19%. Also, Adani Power is up by 1.2%, and cement stocks ACC and Ambuja soared by 11.6% and 12.5% respectively.

On the contrary, among the bears for YTD in Adani Group are Adani Energy Solutions and Adani Total Gas with nearly a per cent downside each. FMCG stock Adani Wilmar shed 6.14% YTD, while NDTV is also the top underperformer with a 21% drop.