Adani flagship’s shares near record high before earnings

Billionaire Gautam Adani’s flagship firm is set for another bout of scrutiny when it reports earnings for the latest quarter on Thursday. Its stock meanwhile has overcome recent weakness to approach record levels.

Shares of Adani Enterprises Ltd., which have been investor darlings for years now, are about 8 percent away from an all-time high reached in September. The stock was down 0.5 percent in Wednesday’s session after a 6.8 percent rally the previous day. It has more than doubled this year.

“Shares of Adani Enterprises are running up as investors are accumulating in expectation of stellar results and a robust outlook for the company,” said Kranthi Bathini, a director at Mumbai-based WealthMills Securities. “Even debt investors in the group’s other firms are getting enthused as they look out for commentary on growth, investment and borrowings.”

The December 2024 dollar bonds of group firm Adani Green Energy Ltd. gained 0.9 cents on Wednesday, the biggest daily increase in nearly a month, data compiled by Bloomberg show. Its shares rose for a third day.

Adani Enterprises is known to incubate new businesses for the ports-to-power conglomerate that has been rapidly diversifying into newer areas such as green energy, airports, cement, data centers and media. Led by Asia’s richest man, the flagship was added to the benchmark NSE Nifty 50 Index at the end of September. It has surged about 3,500 percent in the previous five years.

Some market watchers have balked at the debt-fueled expansion of the conglomerate and the lack of broader coverage by equity research analysts. Still, several of the group’s stocks are among the top performers in the broader Indian market this year.

Adani Ports, the group’s other firm that is also part of the Nifty 50 index, posted a net income that topped analysts’ estimates, helped by improved cargo volumes. Its shares were down 1 Bloomberg on Wednesday after rising 2.2 Bloomberg in the previous session.

The August 2027 dollar bonds of Adani Ports slipped as much as 0.04 cents, the data compiled by Bloomberg showed.

Adani Enterprises had reported a net income of 4.69 billion rupees ($56.7 million) in the June quarter, a 73 Bloomberg jump from the previous year.

The Adani Group plans to invest over $150 billion across businesses, including green energy, airports and healthcare, the Press Trust of India reported late last month, citing Chief Financial Officer Jugeshinder Singh.

—Bloomberg