Adani's Solar Energy Stock Sees Huge Buying, Hits New 1-Year High, Gives 353% Returns - Explained WHY!

The majority of Adani Group shares were trading on a bullish note during Wednesday's trade, however, the port-to-power empire's one stock specialised in solar energy, outperformed its siblings. This Adani stock price touched a new 52-week high and gave nearly 16% returns in a single day. This will be Adani Green Energy's share price, which is in focus for it reportedly talks to raise 500 million dollar bonds.

On BSE, Adani Enterprises share price gained by 15.73% to hit a new 52-week high of Rs 1,991.60 apiece during February 7th trading session. The stock jumped by 353.31% from its 52-week high level of Rs 439.35 apiece.

The stock price shot up after a Bloomberg report said that Indian billionaire Gautam Adani's group is in talks to raise about $500 million via dollar bonds, its first overseas issuance since a report by a US short seller last year prompted concerns about the conglomerate's ability to refinance borrowings.

The report added that it is the group's solar energy producer, Adani Green Energy which is discussing the planned transaction with a group of foreign banks, including a US firm, according to people familiar with the matter.

However, Adani Group or Adani Green Energy have not made any official statement for the same.

In Q3FY24, Adani Green's EBITDA was 52% YoY to Rs. 5,412 crore with an industry-leading EBITDA margin of 92%, while its cash profit increased 61% YoY to Rs. 2,944 crore. Further, Adani Green's run-rate EBITDA stands at a strong Rs. 7,806 crore. Operational Capacity increases 16% YoY to 8,478 MW. Sale of energy increases 59% YoY to 16,293 million units.

In its financial results report, Adani Green revealed that it has completed the PPA tie-up for the entire 8,000 MW manufacturing-linked solar tender issued by Solar Energy Corporation of India (SECI) with the remaining 1,799 MW recently tied up. With this, AGEL has a portfolio of 19,834 MW backed by signed PPAs. The total locked-in growth portfolio stands at 20,844 MW including a merchant portfolio of 1,010 MW.

Also, Adani Green's operational capacity grew at 16% YoY to 8,478 MW with the greenfield addition of 700 MW solar-wind hybrid, 304 MW wind and 150 MW solar projects. The sale of energy increased by 59% YoY to 16,293 million units in 9M FY24 primarily backed by strong capacity addition and improved CUF.

Adani Green also said that promoters are going to invest Rs. 9,350 crore equity in AGEL through share warrants with Rs. 2,338 crore already received and remaining to be received in 18 months. Further, it upscaled the Debt funding pool under the Construction Financing Framework by USD 1.36 billion to USD 3 billion. It also completed funding of reserves for the redemption of USD 750 million Holdco bonds due in September 2024.

The company is also working on the world's largest renewable power plant at Khavda in Gujarat and endeavours to set new standards for mega-scale development of renewable energy projects as the world embraces the target of tripling renewable power capacity by 2030, Amit Singh, CEO said on January 29, 2024.

Adani Green Energy Limited (AGEL) is India's largest and the world's leading renewable energy company enabling the clean energy transition. AGEL develops, owns, and operates utility-scale grid-connected solar, wind and hybrid renewable power plants. With a locked-in growth trajectory up to 20.8 Gigawatt (GW), AGEL currently has an operating renewable portfolio of 8.4 GW, the largest in India, spread across 12 states, offsetting over 48 million tonnes of CO2 emissions cumulatively. AGEL is credited with developing several landmark renewable energy power plants, the latest being the world's largest wind-solar hybrid power cluster of 2,140 Megawatt (MW) in Jaisalmer, Rajasthan.

The company has set a target of achieving 45 GW by 2030 aligned to India's decarbonization goals.