Gautam Adani’s multi-billion dollar conglomerate experienced a significant rally in early trade on Monday, with shares soaring up to 16%. This surge came in the wake of unanimous predictions by exit polls forecasting a record victory for Prime Minister Narendra Modi in the upcoming Lok Sabha election results, scheduled for Tuesday.
According to reports from ET, the cumulative market capitalization of all 10 listed Gautam Adani’s stocks surged by nearly Rs 1.4 lakh crore, elevating the total market value of the conglomerate’s listed entities to Rs 19.24 lakh crore.
Adani Power emerged as the top performer, rallying 16% to reach a new 52-week high of Rs 875 on the BSE. Within the Nifty50 pack, Adani Ports led the gains with a 9% return, closely followed by a 7% increase in the group’s flagship entity, Adani Enterprises. Other notable gainers included Adani Total Gas, Adani Energy Solutions, and Adani Green, all trading 7-8% higher.
With several counters already recovering all losses, Adani stocks are now approaching their pre-Hindenburg levels. In fiscal year 2024, the Adani Group’s profit after tax (PAT) surged by 55% to Rs 30,768 crore, while its EBITDA grew by 40% year-on-year to Rs 660 billion.
Jefferies maintained buy recommendations on Adani Enterprises (target price Rs 3,800), Adani Ports (target price Rs 1,640), and Adani Energy Solutions (target price Rs 1,365).
Last week, CLSA included Adani Ports, Adani Enterprises, ACC, and Ambuja Cement in its list of 54 “Modi stocks,” comprising PSUs and stocks belonging to various other corporates considered direct beneficiaries of PM Modi’s policies.
The surge in Adani stocks reflects investor confidence in the anticipated political stability under Modi’s leadership, as indicated by exit poll predictions.