Adani Group Stocks: Post Hindenburg crisis, FY24 profit surges by 55% to Rs 30,768 crore. Jefferies favors Adani Enterprises, Adani Ports, and Adani Energy Solutions, highlighting strong EBITDA growth and strategic moves. Adani Ports slated to join Sensex on June 24.
Amidst recovery from the Hindenburg crisis, Adani Group’s FY24 profit after tax (PAT) soars by 55% to Rs 30,768 crore, indicating its resilient growth trajectory. Jefferies, a global brokerage firm, recommends buying 3 Adani stocks based on their analysis of earnings data.
Adani Group witnessed a 55% profit surge in the fiscal year ending March 2024, as the conglomerate resumes expansion plans and targets a $90 billion capex in the next decade.
After facing backlash from a damning report by a U.S. short seller, which impacted the market value of its listed companies, Adani Group focused on debt containment, reducing founder share pledges, and consolidating business in core areas during the 2023-24 fiscal (April 2023 to March 2024).
This effort led to a rise in net profit to ₹30,767 crore for the group’s listed companies in the fiscal, up from ₹19,833 crore a year earlier, according to exchange data and analysts. The five-year CAGR (compounded annual growth rate) for profit growth stood at 54%.
Adani Group saw a 55% profit surge in the fiscal year ending March 2024, as the conglomerate resumes expansion plans and targets a $90 billion capex over the next decade.
Emerging from a damning report by a U.S. short seller, which impacted the market value of its listed companies, Adani Group focused on debt containment, reducing founder share pledges, and consolidating business in core areas during the 2023-24 fiscal (April 2023 to March 2024).
This effort led to a rise in net profit to ₹30,767 crore for the group’s listed companies in the fiscal from ₹19,833 crore a year earlier, according to exchange data and analysts. The five-year CAGR (compounded annual growth rate) for profit growth stood at 54%.
EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 40% to ₹66,244 crore despite a 6% revenue fall.
According to a Jefferies note, “Total group EBITDA grew 40% year-on-year in FY24 (5-year CAGR of over 27%), group raised fresh funds from equity/debt/strategic investors, promoter increased stake in group companies and group Mcap rebounded.” The group is back on an expansion spree and eyeing $90 billion capex over the next decade. Group leverage was at a multi-year low, the U.S.-based brokerage said.
“Net debt at the group level (eight companies plus debt related to cement-business acquisition) remained stable at ₹2.2 lakh crore in FY24 vs ₹2.3 lakh crore. Net debt/EBITDA improved materially to 3.3x FY24 EBITDA vs 5x year-on-year,” it said.
Adani Ports and Adani Power saw a drop in net debt in FY24. Increase in leverage for Adani Enterprises and Adani Green was on the back of new capex projects undertaken by companies.
In FY24, the group’s flagship Adani Enterprises commissioned an ingot wafer unit as part of solar module manufacturing, wind turbine facility and copper smelter. Adani Cement completed the Sanghi Cement acquisition while promoters infused more funds in the company.
Adani Ports acquired Gopalpur port, Adani Power commissioned 1.6 GW Godda power plant, Adani Green added 2.8GW renewable energy capacity and commenced operations of solar power project in Khavda, Gujarat, and Adani Energy Solutions put up 1,244 circuit kilometers of transmission lines.
Looking ahead, Jefferies stated, “Adani Enterprises aims to scale captive manufacturing for green hydrogen production by FY27; Navi Mumbai Airport likely to commission by 4QFY25; data center projects progressing.” Adani Cement plans to double capacity, while Adani Ports sets 5-year roadmap targeting 18% EBITDA growth in FY24-29.
“Ports EBITDA expected to grow at 16% CAGR driven by expansion and ramp-up, aiming for 1 billion tonnes cargo volume by 2030 (15% CAGR),” it noted. Adani Green raises 2030 power capacity target to 50 GW, including 5GW pumped hydro.
Adani Total Gas to expand into new business segments including LNG stations for transport and mining, and EV charging facilities. Adani Wilmar focuses on distribution expansion, enhancing alternate channels, and improving premium brand mix.
Jefferies recommends ‘Buy’ on four group companies — Adani Enterprises, Adani Ports & SEZ, Adani Energy Solutions, and Ambuja Cements.
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