Why Adani Green Shares are Rising Today

Nothing, not even Hindenburg Research, could halt the Adani group from growing.

All stocks from the Adani group have been on a roll lately. The rally extended to the fourth trading day today as eight out of the 10 stocks from the group traded in the green. With gains up to 20%!

On Wednesday, the combined market cap of all Adani Group companies stood at Rs 14.65 trillion (tn).

On the previous day, Adani Group stocks witnessed an impressive gain of Rs 1.9 tn, marking their best single-day market performance.

The total market capitalisation of the group companies came close to crossing the Rs 14 tn mark.

Adani Group Stocks Performance on Wednesday

Company	Change (%)
Adani Total Gas	20
Adani Green Energy	17
Adani Energy Solutions	13
NDTV	13
Adani Power	7
Adani Wilmar	6
Adani Ports & SEZ	2
Adani Enterprises	1
Ambuja Cement	-0.3
ACC	-2

Source: Equitymaster

Amid all this, Adani Green Energy emerged as the second top performer.

In fact, shares of the company have shot up over 50% in just 5 days.

Let's find out why.

#1 Khavda Project Fund Infusion

Adani Green Energy on Tuesday sealed its largest project financing of US$ 1.36 billion (bn) (Rs 113.4 bn) senior debt facility.

The funds will be utilised towards the development of its planned renewable energy park at Khavda in Gujarat.

The company added the latest project finance as part of its Construction Financing Framework to enhance the funding pool to US$ 3 bn since the initial project financing in March 2021.

The green loan facility has been extended by a consortium of lenders, which include - BNP Paribas, Cooperatieve Rabobank UA, DBS Bank Ltd, Intesa Sanpaolo SpA, MUFG Bank, Ltd., Societe Generale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation.

The funding was an important element of its overall capital management plan and accelerated development programme aimed at fostering accretive growth.

The company is setting up a 2,167-megawatt renewable energy park at Khavda.

Anticipated to be the largest renewable energy (RE) park globally, the Khavda project perfectly aligns with its ambitious vision of reaching 45 GW of operational renewable capacity by 2030.

Following the update, the company's shares surged by 13% on Tuesday, with an additional gain of 16% on Wednesday.

#2 Ambitious Capacity Expansion Plans

Adani Green Energy, India's largest renewable power producer, announced on Monday its ambitious plan to invest an additional US$ 22 bn.

This will increase capacity by over five times before 2030, capitalising on the nation's steadily increasing demand for electricity.

India's electricity demand is growing 7% annually, dwarfing expansion in other economies.

The steep climb led the government to mandate the addition of both renewable and thermal capacity to prevent blackouts.

Adani's clean energy unit saw its installed capacity more than double in the past two years, with profits riding on the expansion.

India, which currently gets nearly 70% of its electricity from coal, is seeking to reduce its reliance on fuel by reaching 500 gigawatts of clean capacity by 2030. The goal is being championed by the country's big business tycoons like Adani.

The nation's dependence on fossil fuels casts a shadow over its ability to meet its carbon neutrality target by 2070.

Thus, Adani Green plans to spend US$ 4.5 bn and add 8 gigawatts of installed capacity over the two years through March 2025, eventually reaching 45 gigawatts by the end of this decade.

What Next?

Adani Green Energy is actively delving into the realm of green hydrogen production, aspiring to establish a significant presence in this burgeoning clean fuel sector.

While their primary focus remains on India, Adani Green is strategically eyeing opportunities abroad, where renewable energy demand is high.

Further, the company is embracing artificial intelligence (AI) and automation to optimise operations, improve efficiency, and predict maintenance needs.

Overall, Adani Green Energy's plan paints a picture of aggressive growth, diversification, and innovation. The company aims to be a leading renewable energy company not just in India, but globally while contributing to India's clean energy goals.

While all these forward-looking statements may paint a pretty picture, one should also look at Adani Green's debt and how it plans to pay/prepay it in the future.

Debt was the main concern for Adani stocks, apart from high and in-exorbitant valuations.

We all know what happened in January 2023 after Hindenburg came out with its detailed report on the Adani group.

We just don't want you to be stuck between a rock and a hard place... so do your research, get comfortable with the fact that Adani stocks may witness heightened volatility, and have the patience to see the company reach its ambitious goals.

How Adani Green Energy Share Price has Performed Recently

In 2023 so far, Adani Green shares have lost 17%.

In the past five days it has rallied over 53% and it zoomed 55% in past three months.

Adani Green has a 52-week high of Rs 2,185 touched on 17 January 2023 and a 52-week low of Rs 439 touched on 28 February 2023.

About Adani Green Energy

Incorporated on 23 January 2015, Adani Green Energy currently has a project portfolio of 20,284 MW, and it's one of India's largest renewable energy enterprises.

The firm administers 5,290 megawatts of wind energy and solar power facilities in 11 Indian states, including Uttar Pradesh, Rajasthan, Punjab, Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Karnataka, Tamil Nadu, and Telangana.

For more details about the company, you can have a look at the Adani Green factsheet and its latest quarterly results on our website.

You can also compare Adani Green with its peers.

Adani Green vs Tata Power

Adani Green vs Inox Wind Energy

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...