BackMultibagger: This Adani Group stock soared 295% in a year, climbed over 5700% in 5 years
Adani Group stocks have witnessed a surge, with Adani Green Energy notably rallying. The company achieved a milestone in Gujarat and plans for the largest renewable energy installation at Khavda RE park. Moody's upgraded the company's rating.
PremiumAdani Group stocks have witnessed significant investor interest in recent months, evident from notable surge in the share values. The group's decent performance in the third quarter has further bolstered the group stocks to trade at higher levels.
Most of the group's stocks have made a robust recovery since the release of a critical report by U.S. short-seller Hindenburg Research in January of last year. Factors contributing to this rebound include investments in Adani stocks by the Qatar Investment Authority and GQG Partners, as well as the conglomerate's efforts to reduce its debt burden.
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Among the group stocks, Adani Green Energy, the country's largest renewable energy (RE) company and the second-largest solar PV developer in the world, stood out as an outlier as it rallied significantly over the last three-month period.
During this period, the shares have grown from ₹1,052 apiece to the current trading price of ₹1,918, resulting in a massive gain of 82%, and they soared 295% in the last one-year period, while over the last five-year period, the shares delivered a staggering return of 5720%.
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Begins generation from the world’s largest RE park
On February 14, the company announced that 551 MW of solar capacity in Khavda, Gujarat, had become operational and started supplying power to the national grid. The company achieved this milestone within 12 months of commencing work on the Khavda RE park.
The company plans to develop 30 GW of renewable energy capacity at this RE park. The planned capacity is expected to be operationalised in the next five years. When completed, the Khavda RE park will be the largest renewable energy installation in the world.
This RE park alone can power 16.1 million homes each year. The company currently has an operating renewable portfolio of over 9 GW, the largest in India, spread across 12 states.
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The company has set a target of achieving 45 GW by 2030, aligned with India’s decarbonisation goals. Global credit rating agency Moody's has recently upgraded the rating on the company from 'negative' to 'stable'.
First dollar bond sale
The company is looking to raise USD 409 million through US dollar-denominated bonds to repay a debt obligation falling this year, the company said in a regulatory filing on February 27.
This marks the first overseas bond sale since the Hindenburg report.
The company intends to use the gross proceeds of the offering to redeem the USD 500 million in 6.25 percent senior secured notes due in 2024. It said these notes were issued on June 10, 2019.
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Additionally, the company reportedly engaged with investors in Singapore to promote an overseas bond.
Most of the group's foreign bonds are back above the levels they traded at before the Hindenburg report, giving the company comfort to look at a fresh issue of dollar bonds, as per the Reuters report.
Looking at the company's financials, its consolidated net profit improved by 148.54% to ₹256 crore in Q3 FY23 as compared to a net profit of ₹103 crore reported in the same period last year.
The company's consolidated revenue from operations surged to ₹1,765 crore in Q3 from ₹1,258 crore in the year-ago quarter, which is an increase of 40.30% YoY.
Disclaimer: We advise investors to check with certified experts before making any investment decisions
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