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Adani Green is the most talked-about company these days as the stock became one of the Top 10 most valued companies in India.
Adani Green Energy Limited (AGEL) is one of India's largest renewable energy companies. It proudly boasts a portfolio of 54 operational projects and 12 projects underway in the field of solar and wind energy. AGEL is part of the Adani Group's promise to provide a better, cleaner, and greener future for India.
The most notable project under the company's management is the Kamuthi Solar Power Project, one of the world's largest solar power projects. Since its establishment in 2015, the company has seen several big projects such as its Joint Venture with the Government of Rajasthan to develop solar parks with a cumulative capacity of 10,000 MW or when the company won the bid of Solar Energy Corporation of India relating to wind projects linked to the National Grid of India.
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Adani Green's Stock Price Rallies
However, the company is not in the news for its commitment to a greener India, but because of its stock price.
The stock has been rallying upwards constantly and has propelled the company into the 8th position in the list of Top 10 most valuable companies in India. The company's performance on the bourses has helped the company overtake seasoned players like HDFC and Bharti Airtel.
On 12th April, the company took over the spot of Airtel as the 10th most valuable company in India. Within 2 days, the company beat both HDFC and Bajaj Finance to be at the 8th position on the said list with a market cap of over Rs 4.4 lakh crore.
The stock currently trades around Rs 2,600. Since the beginning of 2022, when the stock opened at around Rs 1340, the share has given investors a return of 113.7%. In the span of a week, the share has seen an upward movement of around 30%. It may surprise people, but the company's share opened at a meagre price of Rs 32.40 in 2018. An investor who invested in the IPO would have derived 8,740% returns from the share in a span of just 5 years.
Adani's competition in Renewable energy
Moving forward, the growth opportunities of the company are limitless. Indian Prime Minister Mr. Narendra Modi has made a commitment to a 33-35% reduction in emissions by 2030 and net-zero greenhouse gas emissions by 2070 in the COP26 Summit. One of the many aspects of the commitment is the use of Electronic Vehicles.
The EV industry saw a 168% growth in 2021 and the demand is set to grow larger as people are shifting towards EVs. Companies engaged in Renewable energy will see greater gains in the future as India is moving towards a greener and cleaner tomorrow.
However, AGEL is not the only player in the market. Other conglomerates are quick on the uptake as the competition is growing consistently. BlackRock, the world's largest asset manager, along with Mubadala Investment Company, has invested Rs 4,000 crore in Tata Group's renewable energy company for a 10% stake. Sterling and Wilson solar, part of the Shapoorji Pallonji group, serves 24 countries. Reliance Power has also signed deals with the governments of Gujarat and Rajasthan and is set to invest nearly $80 billion in Gujarat.
Only time will tell how the company fares against its competitors in the race for leadership in the renewable energy market.
Article by Aman Agarwal.
This news piece is brought to you by Jobaaj.com
