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  • NRI Herald

Adani Transmission MCap touches the Rs 4-trillion mark for the first time.

News By NRI Herald, 18 August 2022

Picture Source/: Gautam Adani Public Social media profile

The stock is the 15th Indian listed business to reach this benchmark, and the second Adani Group entity to do so.

Adani Transmission Ltd market cap surpassed Rs 4 trillion for the first time on August 16 after its shares surged more than 14% this year. Following three straight sessions of gains, the stock reached an all-time record.

The company was trading on the BSE at a historic high of Rs 3,586.95, up 1.5 percent from its previous estimate, with a market capitalization of Rs 4.01 trillion.Yet in August, the scrip has gained more than 15%, whereas in July it gained more than 25%, its largest monthly gain since August 2021.

The stock is the 15th Indian listed business to reach this milestone, as well as the second Adani Group entity to do so. Previously, it was held by Reliance Industries, Tata Consultancy Services, HDFC Bank, Infosys, Hindustan Unilever, ICICI Bank, Life Insurance Corporation of India, HDFC, State Bank of India, Bajaj Finance, Adani Green Energy, Bharti Airtel, Kotak Mahindra Bank, and ITC.

Shareholders remained interested in buying Adani Group equities as the company swiftly grew into several sectors, resulting in profit transparency. All of the Adani group's publicly traded enterprises earned multi-bagger profits.

As per Bloomberg, this stock is covered by only two experts. At Jefferies, the stock is rated as a buy, but DAM Capital rates it as a sell.

The company just disclosed its June quarter profits, which were lackluster. Its net profit fell by 61 percent to Rs 168 crore during the quarter.Overall, revenues increased by 11% to Rs 3,249.74 crore. Overall liabilities for fiscal year 2022 were Rs 32,170 crore, up 14% from the previous year.

With a 22 percent market share, Adani Transmission is India's biggest personal distribution player. Throughout its Mumbai marketing operation, the firm also maintains a B2C presence. Electricity sales rose by 27% year on year in the Mumbai transmission company. Distribution costs were flat year on year and up (4.7 percent) quarter on quarter, but they remained significantly lower than the statutory minimum.

Throughout a conference call, leadership stated that smart meters are an interesting possibility and that the business may invest Rs 100 billion in this sector over the next several years. Furthermore, the Mundra distribution circle, which the firm is developing, has the capacity to be one of the most extensive in the country, according to leadership.

"Income could increase 1.7x over the next three years due to restructuring advantages. According to research from Jefferies India, any distribution modification must only increase the company's ability.

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