Renewable energy company Adani Green Energy, one of the top multibagger stocks in 2022, has now become the seventh most valuable company in terms of M-Cap and also has the market cap of the country’s largest public sector lender, the State Bank of India, surpassed. Adani Green stock is one of the multibagger stocks in 2022 as it has delivered about 110 percent to its shareholders so far. Currently, the market cap of Adani Green is about Rs 4,49,255 crore while the market cap of SBI is about Rs 4,32,263 crore. Adani Green’s share price appreciation over the past six months has helped Adani Group’s company surpass the market valuations of ITC, Bharti Airtel, Kotak Mahindra Bank, HDFC Limited, Bajaj Finance and SBI. This is the first non-Nifty 50 company to join the elite club.
In the past month, Adani Green’s shares have risen from about Rs 2665 to Rs 2856, rising about 7 percent over the period. Over the year so far, this multibagger stock has skyrocketed from around Rs 1350 to Rs 2856, clocking in at nearly 110 percent this year. In the past 6 months, this share of the Adani group has increased from Rs 1230 to Rs 2856 each, valued at almost 135 percent during this period. However, in the past year, this multi-dredging inventory has increased from Rs 1,100 to Rs 2,856, with an increase of about 160 percent over this period.
The staggering rally is a combination of Adani Group’s recent push in green energy, against the background of India’s commitment to become a net zero-carbon economy by 2070 at last year’s COP26 summit.
While green energy companies have been victims of project stalls and poorly executed power purchase agreements in the past, analysts believe that strong execution skills, land acquisition strategy and excellent capital management have ensured project implementation is completed on time, leading to a shorter payback period and faster cash flow generation.
Furthermore, Adani Green has managed to gain the backing of some of the biggest names in the world in project financing and capital raising. The introduction of Total as a strategic partner is now seen as the first step in building investor confidence in Adani Green’s long-term potential, while the participation of major investors in multi-million dollar green bond issuances has further bolstered sentiment.
Last week, Adani Green posted an increase of more than 16 percent in its consolidated net profit to Rs 121 crore in the March quarter compared to a year ago, mainly due to higher revenues. The company’s consolidated net profit was Rs 104 crore in the quarter ended March 31, 2021, a statement said.
The company’s total revenue in the March quarter also rose to Rs 1,587 crore, from Rs 1,082 crore in the same period a year ago.
“AGEL’s strong results are a confirmation of the Adani Group’s rapidly growing focus on renewable energy sources,” said Gautam Adani, chairman of Adani Group in the statement.
He also stated: “Not only is our investment roadmap in the green energy value chain unmatched by other energy and utility portfolios, but we have also consistently set new industry benchmarks in efficiency, performance and capacity development. Through our domain expertise and our ability to deliver projects quickly, we are accelerating the pace of the energy transition to deliver on India’s commitments to a sustainable future.
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