Adani- a triumph story from clean chit sanctions to the pinnacle of Asia’s richest!
We hope you had a great week! Adani shareholders sure did.
This was a rejoicing week for the Adani group, not only did they get a clean chit from SC over no need for SIT or CBI probe over Hindenburg claims, but Gautam Adani also bagged India’s richest tag, trumping our dear Mukesh Ambani! Adani pack investors can finally rejoice, Hindenburg’s dark cast is over(continued later)
📈 Weekly Update
– Mr Abhishek Jain, Head of Research, Arihant Capital
On Friday, India’s key stock indices closed higher for the second consecutive day, driven by gains in Tata Consultancy Services Ltd, Infosys Ltd, and Larsen & Toubro Ltd. Despite this, both benchmark indices recorded a weekly decrease.
The S&P BSE Sensex dropped by 0.30%, and the NSE Nifty 50 saw a 0.09% decline over the week. Sectoral indices exhibited a varied performance, with 8 out of 12 sectors experiencing gains, while four witnessed declines.
Notably, Nifty Realty stood out as the top-performing sectoral index for the week. Nifty ended higher by 0.24% at 21,710.8 and the Sensex closed 0.25% higher at 72,026.
📰 Stocks In News
🏍️ Hero MotoCorp: is gearing up to launch a new motorcycle of 440cc around 22nd January
🏠 Godrej Properties: aims to develop a high-end residential project on the 4-acre, Bengaluru land it recently acquired
🛫 EaseMyTrip: aims to raise 1,000 crore through a preferential issue
🚗 CEAT: Tax authorities in Maharashtra and Vadodara have issued CEAT GST demands and also penalties worth ₹ 19 crore.
🛢️ DCM Shriram: has said they will invest ₹ 12,000 crore in manufacturing petrochemical and chemical products in Gujarat in Bharuch.
🚂 Jupiter Wagons: has signed a contract with the defence ministry to manufacture 697 bogie open military wagons. The contract is worth ₹473 crore.
✈️ IndiGo: cited a decrease in the aviation turbine fuel prices after the past 3 months and has eliminated fuel charges for domestic and also international flights
🛢️ GAIL: in an agreement with Vitol- a Dutch energy trader, will purchase liquefied natural gas of approximately 1 million tonnes per annum for 10 years, from 2026 onwards.
📞 Vodafone-Idea (Vi): to pay a tax penalty of ₹ 10.76 crore.
🚢 Adani Ports: got approval from the board to raise ₹5,000 crore worth of funds through a public issue of NCDs with a face value of ₹1,000 each
🏍️ Bajaj Auto: Next week’s Buyback proposal to be considered by the board
⛽ ONGC: Venezuela will assist in recovering the outstanding amount of $600 million worth of dividends, regarding a South American project stake. Venezuela will provide oil to ONGC Videsh – its subsidiary.
🚚 Eicher Motors: served with ₹130 crore worth of GST demand notices from three authorities.
📰 Quick Bites
📈 India’s GDP is likely to record a 7.3% growth in the current financial year as per advance estimates from the NSO.
📅 India’s gross GST collection clocks 12% yoy growth during the April-December 2023 period, reaching ₹14.97 lakh crore.
💹 India’s foreign exchange reserves increased by $2.76 billion, reaching $623.20 billion for the week ending 29 Dec, as per the latest data from RBI.
🧂 India’s sugar production touched 112 lakh tonnes, in the December 2023 quarter, a 7.6% yoy decline.
📉 S&P Global measured India’s manufacturing activity growth at 54.9 in December, down from 56 in Nov. This is the worst performance in a year and a half.
🌱 Sustainability Corner
⚡ Electric vehicle (EV) retail sales surge in India and leading the pack is Tata Motors with 73% market share, followed by MG Motor India and Mahindra & Mahindra. Luxury carmakers collectively sold over 2,500 EVs.
🚗 Tata Motors takes a significant step in its EV venture, introducing the Gen2 Acti-EV Born EV platforms to drive innovation and growth in the EV sector.
🔧 SKF India Launches CO2 Calculator for Automotive Industry Sustainability. The tool will estimate carbon emissions for internal combustion engine vehicles and energy losses in EV powertrains.
☀️ SJVN Green Energy inks pact to supply 200 MW solar power to Uttarakhand Power Co
🌬️ Suzlon has received a 225 MW wind energy order from Everrenew energy
⚡Tata Motors achieves a significant milestone by delivering 100 ultra-electric buses to the Assam State Transport Corporation, promoting zero-emission commuting in Guwahati. With over 1,500 e-buses supplied across India, Tata Motors clocks 10 crore kilometres with an impressive 95% uptime.
🏍️ TVS Motor Co makes a historic record of 3 million Two-Wheeler Sales in CY2023. Its EV sales reach a record high with 187,181 iQubes, indicating a 216% increase.
🚗Tata Motors Leads EV Sales Surge in CY2023 with 69,173 units sold, clocking a 59% increase.
🤝 Kotak Mahindra Bank partners with IITK to launch India’s first fully integrated Kotak School of Sustainability through its CSR program
🌊 Torrent Power incorporates wholly-owned subsidiary Torrent Green Hydrogen to carry on the business of manufacturing, assembling, purchasing, purifying, storing, transporting, experimenting with, supplying, trading and generally dealing in hydrogen and its byproducts.
🚘 Here’s how listed Indian auto companies performed in their sales in December 2023 (yoy) – Maruti Suzuki‘s sales dipped by 1.29%, Tata Motors saw a hike of 4.30%, and M&M experienced a rise of 6% among passenger vehicles. Ashok Leyland faced a 4.56% fall. Among two/three-wheeler makers, Bajaj Auto’s sales surged 16.09%, TVS Motor marked a 24.75% surge, and Eicher Motors sold 63,387 Royal Enfields, a 7.33% decrease yoy.
Cover story: Adani the comeback 🚀
On January 24, 2023, US-short seller Hindenburg Research accused Adani Group of fraud and manipulation via its report, claiming the group was involved in cooking books of accounts, over-invoicing of import costs and round-tripping of own money to push up share prices. Adani’s stock prices dropped after the report that took away Adani’s top-ranking position. You may recall the noise in the market when his net worth dipped below $40 billion dollars, at the lowest point of this journey. And yet in a shocking turn of events, Adani made a comeback, and how!
Adani made smart moves- they paid off their debt, and got hefty investments from a US company- GQG partners and as the valuation of the businesses grew, so did Adani’s net worth as he got back in the business game!
The cherry on top: The win in court
Adani Groups celebrated the clean chit given to them by the Supreme Court when the court moved against moving the case to a specific investigation team. This, in turn, pumped up investor confidence in the Adani Group. Gautam Adani emphasized on his gratitude for those who stood by him and reassured us of his continual contribution to the Indian growth story.
Let’s talk numbers
Adani with a net worth of $97.6 billion, now stands at the top position in India’s list of richest persons and at the 12 rank of the world’s richest people. Yes, this means he has surpassed Mukesh Ambani, himself whose net worth is currently $97 billion. In other words, Adani has made a comeback with a $7.67 billion gain since his last ranking and also accumulated a whopping $13.3 billion from the year to date.
The rise to the top
The six publicly traded companies related to the Adani Group, which plays a major role in the country’s infrastructure, have been one of the biggest contributors to Adani’s wealth. You’ve surely heard of these companies – Adani Ports, Adani Energy Solutions, Adani Total Gas, Adani Enterprises, Adani Green Energy, and Adani Power.
Also Read: How Will the RBI’s Monetary Policy Affect Market Mood?
