Adani Green, Adani Wilmar to Adani Power: All 10 Adani shares trade in green. Which one to buy?

Adani Group stocks surged on Monday, with all 10 listed entities trading in the green, signaling renewed investor confidence. The gains in Adani group shares also come amid a broader rally in the Indian stock market. The equity benchmark indices, Sensex and Nifty 50, are trading half a percent higher each.

In a latest development, according to a report from Bar & Bench, the Bombay High Court has discharged Gautam Adani and Rajesh Adani in a case filed by the Serious Fraud Investigation Office (SFIO) concerning Adani Enterprises.

The case involved allegations of market regulation violations amounting to approximately ₹388 crore, arising from concerns over regulatory compliance and financial transactions flagged during an investigation.

A single-judge bench of Justice R.N. Laddha set aside a 2019 sessions court order that had rejected their plea for discharge, the report said.

Adani Group Stocks Performance Today

Adani Green Energy led the rally with a 2.92% gain, followed closely by Adani Enterprises (2.86%), Adani Ports and Special Economic Zone (2.57%), and Adani Energy Solutions (2.14%).

Other Adani Group stocks, including Adani Wilmar (1.23%), Adani Power (1.18%), Adani Total Gas (1.13%), NDTV (1.28%), Ambuja Cements (1.67%), and ACC (1.47%), also saw positive momentum.

What’s Driving the Rally?

The gains come despite recent concerns over legal and regulatory issues surrounding the Adani Group. The conglomerate has faced heightened scrutiny since the Hindenburg Research report in early 2023, which alleged stock manipulation and fraud. Additionally, US prosecutors recently indicted Gautam Adani and other executives on bribery charges, further raising risk perceptions.

However, the latest rally suggests that investors are looking past these challenges, potentially focusing on improving business fundamentals and growth prospects. The group’s Q3FY25 earnings showed a mixed performance, with steady revenue growth in key subsidiaries but challenges from rising input costs and regulatory pressures.

“Key companies such as Adani Green Energy, Adani Power, and Adani Transmission showed moderate revenue growth, but rising input costs, regulatory pressures, and market volatility impacted their overall profitability. Despite increasing energy generation capacity, Adani Green Energy faced challenges with escalating costs in its renewable energy projects. Adani Total Gas saw a slight profit dip, mainly due to regulatory hurdles and changes in natural gas pricing,” said Seema Srivastava, Senior Research Analyst at SMC Global Securities.

On a positive note, Adani Ports & SEZ demonstrated resilience, with stable growth in cargo volumes, benefiting from strong demand in the logistics and supply chain sectors, she noted.

“However, investors should remain cautious due to the ongoing legal and regulatory scrutiny surrounding the group’s top executives,” said Srivastava.

Which Adani Stocks to Buy?

While short-term traders may benefit from the current momentum, long-term investors should carefully assess individual stocks.

Brokerage firm Motilal Oswal has a ‘Buy’ rating on Adani Ports shares with a target price of ₹1,400 apiece. It believes that the company is well placed to continue outpacing industry growth and gaining market share. Further, the logistics business will serve as a value addition to the domestic port business, with a focus on enhancing last-mile connectivity.

The brokerage firm expects Adani Ports & SEZ to report 10% growth in cargo volumes over FY24-27. This would drive a CAGR of 14%, 15% and 19% in revenue, EBITDA and PAT over FY24-27.

Meanwhile, US-based brokerage Cantor Fitzgerald has initiated coverage on Adani Power shares with an ‘Overweight’ rating and target price of ₹595.

“We believe risk/reward for Adani Power is attractive at current levels. On our FY26 continuing EBITDA estimates, Adani Power is currently trading at 10.9x. This compares to US peers trading at 11.6x, Europe peers trading at 7.2x, and India peers trading at 11.9x. With Adani Power having one of the better balance sheets across the industry and a growth profile that we believe is unmatched, we believe shares should at least trade at an inline multiple to its peer group in India, if not a premium,” Cantor Fitzgerald said.

ICICI Securities had also recently resumed coverage on Adani Power with a ‘Buy’ call and DCF-based target price of ₹600 per share.

Last month, Elara Capital initiated coverage on Adani Energy Solutions with a ‘Buy’ rating valuing the company using SOTP method, arriving at a price target of ₹930.

“The valuation assumes regulated transmission assets at 2.5x FY27E P/BV, TBCB transmission projects at 14.0x FY27E EV/EBITDA, distribution assets at 2.5x FY27E P/BV, and smart meters at 12.0x FY27E EV/EBITDA,” it said.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.