Adani Enterprises, Adani Power, Adani Transmission: Why are Adani group shares rising today?

Shares of Adani group companies including Adani Enterprises Ltd, Adani Power Ltd and Adani Total Gas Ltd gained up to 5 per cent in Monday's trade after the Gautam Adani-led conglomerate said it was eyeing Rs 90,000 crore in Ebitda (earnings before interest, taxes, depreciation and amortisation) in the next two-three years. This is against the current annual Ebitda of around Rs 50,000 crore.

Shares of the group flagship Adani Enterprises jumped 3.16 per cent to hit a high of Rs 2,303.85 on BSE. The Adani group sees Ebitda growing by more than 20 per cent annually on a consolidated basis in the next few years as it pursues sustainable growth across its business range. The group's listed portfolio Ebitda jumped 36 per cent year-on-year (YoY) to Rs 57,219 crore in FY23. Core infrastructure businesses, which account for 82.80 per cent of the portfolio including energy, transport, logistics, and flagship Adani Enterprise Ltd's infrastructure ventures, registered a 23 per cent YoY growth in Ebitda to Rs 47,386 crore.

Shares of Adani Power climbed 4.84 per cent to Rs 254.15. Adani Transmission climbed 3.91 per cent to Rs 783.

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Adani Ports & SEZ advanced 1.21 per cent to Rs 723.15. Adani Total Gas rose 2.83 per cent to Rs 652.05. Adani Wilmar advanced 0.59 per cent to Rs 410.50. Adani Green added 0.53 per cent to Rs 964.65. Cement stocks ACC and Ambuja Cements rose 0.4 per cen each while NDTV advanced 1.3 per cent.

The Adani group projection came days after a Bloomberg report suggested that the US authorities have been looking into representations that Adani Group made to American investors following Hindenburg Research's  scathing report. In January, the short seller had accused the group of using offshore companies to manipulate its share prices. Hindenburg Research also accused the group companies of accounting fraud.

The Adani group management said there is no significant debt maturity looming in the near-term, indicating no material refinancing risk or near-term liquidity requirement. The net asset value of gross assets stands at Rs 3,91,000 crore. Over time, the group has diversified its long-term debt portfolio and reduced its exposure to banks while expanding its funding sources. The current debt is distributed among bonds (39 per cent), global international banks (29 per cent), PSU and private banks and NBFC (32 per cent), it said.

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The portfolio's combined net-debt-to-Ebitda improved to 3.27 times in FY23 from 3.8 times in FY22. The net debt to run-rate EBITDA improved to 2.8 times in FY22 from 3.2 times FY23 which highlights the group's strong financial discipline amidst the strong growth, the note said.

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