Adani Ent, Adani Ports: Two Cash-Cow Adani Stocks Rally By 5-7% On January 29 Ahead Of Q3 Results This Week

Two cash-cow Adani Group-backed stocks are on a bull ride during January 29th trading session. The reason will be the upcoming Q3 results for FY24 due later this week. Adani stocks will broadly be trending as they have started to announce their earnings report one by one. Both the stocks have rallied between 5-7% so far in the day.

These are Adani Enterprises the flagship company of Gautam Adani's conglomerate, and Adani Ports which was among the few Adani stocks to defy Hindenburg report and bag massive global investors fund in 2023.

S&P Global Rating recently revised its outlook on Adani Ports to Stable from Negative. This comes as good news for Adani Ports, for Adani Enterprises as it is the main portfolio holder for Adani Group, and the port-to-power empire as a whole because such restores faith in them, hinting at further upside.

Adani Ports:

At the time of writing, Adani Ports share price traded at its intraday high of Rs 1,203 apiece, up by Rs 56.35 or 4.91% on BSE with market cap of Rs 2,59,864.72 crore. The stock has gained by at least 5.07% to hit an intraday high of Rs 1,204.80 apiece, which is also near its 52-week high of Rs 1,229.90 apiece.

The company will announce its Q3 results for FY24 on February 1, 2024.

ASPEZ a part of the globally diversified Adani Group has evolved from a port company to an Integrated Transport Utility providing an end-to-end solution from its port gate to customer gate.

In six months, Adani Ports' share price rose nearly 54% on BSE.

Adani Enterprises:

Meanwhile, Adani Enterprises' share price traded at Rs 3,066.05 apiece, up by Rs 171.50 or 5.92%, The stock has gained by 6.8% to hit Rs 3,092 apiece so far in the day. The stock is also closing the gap towards its 52-week high level of Rs 3092 apiece.

Stock exchanges have sought clarification from Adani Enterprises over news that claimed the Group has put Hindenburg behind with a $3-billion fundraising plan. The reply is awaited.

Adani Enterprises will also declare its Q3 results on February 1, 2024.

Last week, on January 25, AdaniConnex Private Limited ("ACX"), a joint venture of the Company, has on 25th January, 2024 signed Memorandum of Understandings ("MoUs") with Adani Power Limited ("APL") to acquire a 100% equity stake in two wholly owned subsidiaries of APL namely (i) Aviceda Infra Park Limited; and (ii) Innovant Buildwell Private Limited.

Adani Enterprises' share jumped over 23% in six months.

Adani Group Shares:

In its latest report dated January 22, S&P Global Ratings said, "We believe the conclusion of most regulatory investigations into the Adani Group without evidence of wrongdoing has reduced downside risk. We believe the group remains exposed to some governance risks as part of a large family-owned conglomerate with ambitious growth plans and related-party transactions."

Further, S&P's note said, that repayment of all promoter loans linked to share prices, equity, and bank loans raised by multiple group entities at competitive rates reflects restored access to funding. In S&P's view, rated entities Adani Electricity Mumbai Ltd. (AEML) and Adani Ports and Special Economic Zone Ltd. (APSEZ) enjoy good competitive positions, healthy cash flows, and adequate liquidity to meet their debt-servicing requirements.

S&P said, "We revised our rating outlooks on AEML and APSEZ to stable from negative and affirmed our ratings on the entities and their debt." The stable outlook reflects strong business fundamentals and robust cash flows for AEML and APSEZ in the next 12 to 24 months. S&P also expects the rated entities to not undertake significant related-party transactions outside the normal course of business.

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