Adani Enterprises enters top-10 most-valued firms list; replaces ITC

Asia’s richest man Gautam Adani-led Adani Enterprises on Monday entered the elite club of top-10 most valued domestic companies in terms of market capitalisation (market-cap) by grabbing the 10th spot amid strong rally in shares after the Adani Group's flagship company reported robust earnings in the September quarter. The stock has been gaining for the last six consecutive sessions and risen 19% during this period, compared with 2% gain in the benchmark index BSE Sensex.

At the close of trade on Monday, Adani Enterprises’ market capitalisation (m-cap) stood at ₹4,51,571.54 crore, which is the tenth highest in terms of market valuation on the BSE. The index heavyweight has replaced FMCG major ITC as the 10th most valued firm, which has a m-cap of ₹4,38,414.69 at the end of today’s session.

Earlier today, Adani Enterprises shares opened marginally higher at ₹3,840.15, against Friday’s closing price of ₹3,832.35 on the BSE. Extending opening gains, the largecap stock rose 4.76% to hit a fresh all-time high of ₹4,015 in an intraday trade, before settling at new closing high of ₹3,961.15, up 3.36%. The counter witnessed a surge in buying activities with trading volume more than doubled to 2.31 lakh crore, as against the two-week average volume of 1.07 lakh stocks. In comparison, the BSE Sensex settled 234 points, or 0.39%, higher at 61,185 levels.  

Mukesh Ambani-led Reliance Industries Ltd (RIL) is the country's most valued firm with a m-cap of ₹17,63,157.48 crore, followed by TCS with a valuation of ₹11,83,428.69 crore. HDFC Bank is the 3rd in the ranking with a m-cap of ₹8,41,039.51 crore, while ICICI Bank and Infosys hold the fourth and fifth position with valuation of ₹6,39,296.11 crore and ₹6,34,140.78 crore, respectively.

Next in the top-10 list are Hindustan Unilever Ltd (₹5,94,916.51 crore), State Bank of India (₹5,48,149.65 crore), Bharti Airtel (₹4,57,714.88 crore), and HDFC (₹4,55,485.76 crore).

What fuelled Adani Enterprises shares?

The multibagger stock has delivered a massive return of 152% in the past one year, while it has surged 130% on a year-to-date (YTD) basis. In the past six months, the largecap counter gained 80%, whereas it rose nearly 22% in a month.

The Adani Group share has jumped 10% in the last two sessions after the multinational conglomerate posted an over two-fold increase in its net profit, while its revenue nearly tripled during the second quarter of 2022 (Q2 FY23).

For the July-September quarter of the current fiscal, the Ahmadabad-headquartered company reported a 117% rise in its consolidated profit at ₹461 crore, from ₹202 crore in the corresponding quarter last year. Consolidated total income jumped 183% to ₹38,441 crore compared with ₹13,597 crore in the same quarter last year, aided by robust performances by its integrated resource management (IRM) and airports businesses.

With a revenue of ₹30,435.2 crore, the IRM business contributes to nearly 80% of the consolidated topline, while the airport business’ revenue jumped nearly three-fold to ₹1,292.3 crore on a YoY basis.

The ports-to-power conglomerate’s EBITDA more than doubled to ₹1,869 crore against ₹883 crore in the second quarter of the last fiscal year.