After surging 7% on the BSE on Friday in intra-day trade, Adani Enterprises has now become the second most valuable firm in the Gautam Adani-led Adani Group of companies, with the stock hitting a new high of Rs 1,694. The stock was up for the fifth day in a row and has gained 30% in the last week, compared to a 1.5 percent advance in the S&P BSE Sensex.
With a market capitalization of Rs 1.99 trillion, Adani Green Energy is the most valued Adani Group firm. According to BSE statistics, Adani Total Gas has a market capitalization of Rs 1.81 trillion, followed by Adani Transmission (Rs 1.76 trillion) and Adani Port and Special Economic Zone (Rs 1.70 trillion). Adani Enterprises (AEL) currently operates primarily in the areas of integrated resources management (IRM) / coal trading, power trading, and mining services on a standalone basis.
- AEL, on a consolidated basis, has diversified businesses which include:
- Solar cell and module manufacturing.
- Agro-processing (including the sale of branded edible oil).
- Commodities trading, bunkering (fueling) of ships, and shipping.
- AEL has made large investments in coal mining and related rail evacuation infrastructure in Australia through its companies, and is now incubating new industries like airports, road construction, water treatment plants, and data centers.
Adani Airports, according to AEL, is poised to dominate the airports’ industry, with a consumer base of more than 200 million people, thanks to the network effect and consumer attitude. Meanwhile, Adani Welspun Exploration stated this month that it has discovered significant volumes of gas and condensate at three reservoir levels after drilling an exploration well in the NELP-VII region (MB-OSN-2005/2) in March 2021. Adani Welspun Exploration is a 65 percent joint venture between the Adani Group and Welspun Enterprises Limited (35 percent shareholding).
Additionally, data acquired from the discovery well is being analyzed for seismic inversion, conventional core, and PVT investigations to determine the full potential of the find; preliminary results show possible upsides to projected resources, according to the business. Preliminary data analysis suggests that the Block has a significant commercial potential, with Contingent Gas Initially Inplace Place (GIIP) resources (2C) of 514 billion cubic feet (BCF) and Prospective resources of 50 BCF.