Three Adani Group stocks rally over 100% in FY24; here’s what investors should expect in FY25

The combined market capitalisation (m-cap) of the Adani Group of companies jumped 74% to nearly Rs 16 lakh crore in financial year 2023-24, all thanks to the robust performance of Adani Power, Adani Ports and Special Economic Zone, Adani Green Energy, Adani Enterprises and ACC in the domestic equity markets.

Data showed that Adani Power surged the most 179% in the last financial year. It was followed by APSEZ (up 112%) and Adani Green Energy (up 108%). Adani Enterprises, Ambuja Cements and ACC also rallied 82%, 68% and 49%, respectively, during the year.

Sharing his views on Adani Group, Kranthi Bathini, Equity Strategist, WealthMills Securities said, “Majority of the group companies are going to do well as it focus on the infrastructure sector where capex spending is going up and the government is also zeroing on towards the infrastructure sector. We believe that ports and cement businesses of the group are going to do well in FY25. We also need to wait and watch as far as the coal price and trading is concerned. The majority of Adani Enterprises income comes from coal trading. Adani group stocks are high beta in nature and these are suitable for high-risk appetite investors for the long term. Adani Energy Solutions, formerly known as Adani Transmission, is also corrected from over Rs 4,000 to Rs 1,100 levels, which is relatively a good entry price level.”

Of late, Adani Power hogged the limelight after the company’s announcement on Mukesh Ambani-led Reliance Industries picking up a 26 per cent stake in a Madhya Pradesh power project of Gautam Adani. “Mahan Energen Ltd, wholly owned subsidiary of Adani Power has entered into a 20-year long-term Power Purchase Agreement for 500 MW with RIL, under the Captive User policy as defined under the Electricity Rules, 2005,” it stated.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, “The stock has seen a strong resurgence recently, letting the counter inch toward its lifetime highs. It seems poised to enter uncharted territory and continue its northward journey. For now, Rs 560 is likely to provide a cushion for any blips, while on the higher end, an authoritative surge beyond Rs 600 could strongly thrust the bullish momentum in the comparable period.”

Shares of Adani Energy Solutions gained 3% in the last one year. New Delhi Television and Adani Total Gas also advanced 7% and 9%, respectively, during the same period. On the other hand, Adani Wilmar plunged 21% in FY24.

With a time horizon of 24 months, Ventura Securities is bullish on Adani Energy Solutions and fixed a target price of Rs 1,600, indicating an upside of more than 45%.

“The power transmission & distribution (T&D) sector in India is set for expansion, supported by favourable policy environments, substantial capacity enhancements and increased openings for private sector involvement via tariff-based competitive bidding (TBCB). Adani Energy Solutions stands out as the premier private T&D entity, managing 20,422 circuit kilometers (ckm) of transmission lines and 54,600 MVA of power transformation capacity,” Ventura Securities said.

It added the company has set a goal to establish 30,000 ckm of transmission lines by 2030, capitalising on both organic and inorganic growth prospects.