Adani Green — The Sole(a)r Leader
Adani Green Energy entered the ₹1 trillion market capitalization (m-cap) on Tuesday, the first Gautam Adani-led Adani Group company to cross the mark.
From hovering around the level of ₹55 per share in September 2019 to hit a record high of ₹670 per share, the stock has advanced around 1,230% in the past year. The company was listed in the stock exchanges in 2018.
The source of strength
The rally has been driven by a bunch of positive developments that put the company in the spotlight.
The company was ranked the largest solar power generation company in the world by clean energy communications and consultancy firm Mercom Capital. As per Mercom Capital’s study, Adani Green’s solar portfolio stands at 12.32 gigawatts now, which exceeds the total installed capacity of the U.S. in 2019. The company, which established its first solar project in 2015, was the only Indian developer among the top 10 globally.
The company also bagged a manufacturing-linked solar contract in June from the Solar Energy Corporation of India (SECI) to develop 8 GW of projects with the transaction valued at ₹45,000 crore ($6 billion). The transaction helped the company secure the top spot to become the world’s largest solar developer.
Last week, the company said it has tied up with around 10 international banks to diversify construction finance portfolio for its ongoing and future projects. It’s executive director in a media analyst call had said in addition to the Indian banks, the company also has about 10 odd international banks who are going to work for their construction greenfield funding.
As per the findings released in Mercom India Research’s report ‘India Solar Market Leaderboard 2020’, Adani was ranked among the top three suppliers of solar modules in India in terms of shipments in the calendar year 2019.
On the earnings front, Adani Green reported ₹21.7 crore net profit for the quarter ending June 2020 led by higher revenue as compared to ₹97.4 crore net loss posted in the same quarter last year. Across our plants, we have continued completely normal operations even in this pandemic situation and remain committed to power supply being the ‘essential services’, the company said.
The growing demand for cleaner and greener technology has accelerated the need of the green energy in the country with Adani Green leading the transition. The competitive intensity remains low due to lack of large-scale integrated players in the industry and low viability for new and small-scale players in the sector, the company stated in its 2019–20 annual report.
Adani Green targets achieving an installed generation capacity of 25 GW of renewable power by 2025 at an investment of ₹1.12 trillion ($15 billion) in the renewable energy space in the next five years.
The Indian government has set a target of 175 gigawatts (includes 100 GW of solar & 60 GW of wind energy) of renewable capacity by the year 2022 estimated an investment of about ₹4 lakh crore and is aiming for 450 GW by 2030. Such ambitious targets are giving a boost to large scale strategic players in the industry.
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