Adani Enterprises shares hit 52-week high; rally 13% in four sessions

Shares of Adani Enterprises rose nearly 2% in intraday trade to touch a fresh 52-week high on Friday ahead of its board meeting to mull fundraise. The sentiment was further lifted amid a report that stock is set to replace Wipro on the BSE Sensex index in the upcoming semi-annual rebalancing exercise for BSE indices scheduled later today.

IIFL Alternative Research in a note said that the inclusion of Adani Enterprises to Sensex will result in inflows worth $118 million (nearly ₹1,000 crore) from passive funds tracking the index.

Extending its gaining streak for the fourth straight session, Adani Enterprises shares gained as much as 1.9% to hit a 52-week high of ₹3,456.25 on the BSE, while the market capitalistion rose to ₹3.9 lakh crore. The share price of the conglomerate has risen 13% in the last four sessions. The counter has rebounded 61% from its 52-week low of ₹2,142.30 touched on November 20, 2023.

At the current level, shares of Adani Enterprises trade 18% lower than its all-time high level of ₹4,189.55 touched on December 21, 2022. The stock, however, has climbed over 3-fold from its low of ₹1,017.45 hit on February 3, 2023, in the aftermath of Hindenburg Research report on Adani group companies.

In an exchange filing on May 22, the flagship entity of Adani Group said that its board will meet on May 27 to consider and approve the proposal of raising of funds by way of issuance of equity shares or any other eligible securities, subject to requisite approval.

“The funds will be raised through permissible modes, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods as may be permitted under applicable laws, subject to such regulatory/statutory approvals as may be required and the approval of shareholders of the company,” billionaire Gautam Adani-led company said in the filing.

According to recent media reports, Adani Enterprises is in talks to raise as much as $1 billion from investors in the U.S. and Europe for its airport business as well as solar panel business.

In Q4 FY24, consolidated net profit of Adani Enterprises dropped 38% year-on-year to ₹450 crore, compared to ₹772.48 crore in the corresponding quarter last year, dented by rise in material costs and operating costs. The bottom line of the private airport operator was also impacted by an exceptional loss of ₹627 crore towards the annual fees for Mumbai International Airport Ltd, as an expense for the period of March 2022 to September 2022.

Revenue rose marginally by 0.8% to ₹29,180.02 crore during the fourth quarter as against ₹28,943.84 crore in the year-ago quarter. EBITDA stood at ₹3,646 crore versus ₹3,974 crore in Q4FY23.

During the March quarter of FY24, the company’s operating costs jumped 31% year-on-year to ₹9,324 crore in Q4 FY24 from ₹7,118 crore in Q4 FY23. The cost of materials consumed more than doubled year-on-year to ₹2,824 crore during the fourth quarter from ₹1,324 crore in the year-ago period.

The board of the company also recommended a dividend of ₹1.30 per equity share for the financial year 2023-24.

For the full financial year 2023-24, Adani Enterprises reported a 32% jump in consolidated EBITDA to ₹13,237 crore while profit before tax (PBT) increased 56% to ₹5,640 crore.

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