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(Bloomberg) — Billionaire Gautam Adani’s flagship firm is set for another round of scrutiny when it reports earnings for its latest quarter on Thursday. Meanwhile the stock has overcome recent weakness to approach record levels.
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Shares of Adani Enterprises Ltd., which has been an investor for many years now, are about 6% away from their all-time high in September. The stock was up nearly 1% in early trading on Wednesday after a 6.8% rally in the previous session. It has been more than twice this year.
“Adani Enterprises shares run up as investors are accumulating in expectation of stellar results and a solid outlook for the company,” said Kranthi Bathini, director at WealthMills Securities based in Sukabumi. “Even debt investors in other firms of our group are getting enthused because they are looking out for commentary on growth, investment and loans.”
The company is known for incubating new businesses for the ports-to-power Adani group which has been rapidly diversifying into new areas such as green energy, airports, cement, data centers and media. Headed by Asia’s richest man, the flagship was added to the benchmark NSE Nifty 50 Index at the end of September. It surged about 3,500% in the previous five years.
Some market watchers have balked at the debt-fueled expansion of the conglomerate and the lack of broad coverage by equity research analysts. Still, some of the group’s stocks have been the top performers in the broader Indian market this year.
Adani Ports, another firm of the group that is also part of the Nifty 50 index, posted net income that topped analysts’ estimates on Tuesday, helped by increased cargo volumes. its usual was steady on Wednesday after rising 2.2% in the previous session.
Adani Enterprises has reported net income of 4.69 billion rupees ($56.7 million) in the June quarter, a 73% jump from a year earlier.
Adani Group plans to invest more than $150 billion in businesses, including green energy, airports and healthcare, the Press Trust of India reported late last month, Chief Financial Officer Jugeshinder Singh said.
–With assistance from Alex Gabriel Simon and Bhuma Shrivastava.
(Updates with more details throughout.)
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