The Adani Group witnessed a significant 55% surge in profits in the fiscal year 2023-24 compared to the previous year, with registered companies’ net profit reaching Rs 30,767 crore, up from Rs 19,833 crore in 2022-23. Despite a 6% decrease in revenue, EBITA soared by 40% to Rs 66,244 crore.

However, following the Hindenburg allegations, Adani group companies experienced a decline in share values and market capitalization. Nonetheless, the group remains committed to reducing debt and divesting stakes, with plans for expansion.

American brokerage firm Jefferies has expressed intentions to invest $90 billion (approximately Rs. 7.50 lakh crore) over the next decade. Adani Group’s net borrowings remained steady at Rs 2.2 lakh crore in 2023-24, compared to Rs 2.3 lakh crore in the previous fiscal year.

 

In the fiscal year 2023-24, Adani Ports and Adani Power witnessed a reduction in net debt, while Adani Enterprises and Adani Green saw an increase due to undertaking new projects. Adani Enterprises inaugurated a wafer unit for solar module manufacturing, a wind turbine facility, and initiated the establishment of a copper smelter.

Additionally, Adani Cement successfully acquired Sanghi Cement, with promoters injecting additional funds into the company. Gopalpur Port was acquired by Adani Ports, and Adani Power established the 1.6 GW Godda Power Plant. Adani Green expanded its renewable energy capacity by 2.8 GW.

Looking ahead, Adani Enterprises plans to boost manufacturing capacity and commence green hydrogen production by 2026-27, with the Navi Mumbai Airport set to be operational by the last quarter of 2024-25. Adani Cement aims to double its capacity, while Adani Total Gas seeks growth in new business segments, including setting up LNG and EV charging stations for the transport and mining sectors.

Considering these developments, Jefferies recommends a ‘Buy’ rating on shares of Adani Enterprises, Adani Ports and SEZ, Adani Energy Solutions, and Ambuja Cements.