How did Adani become hot stock that grew exponentially during lockdown?

Short Answer

Adani has greatly diversified its involvements from not only in ports but then in running airports, energy sectors, and warehousing activities as well. As a result, it has been one of the greatest attributions towards its massive growth in the country in 2020.

Detailed Answer

Hearing that a company gained a market capitalization of 455 percent in a single year might seem a bit farfetched, but then this is one of the many staggering numbers that are by the Adani group. From being a mid-sized company to directly competing with Reliance, TATA, Infosys, TCS, and so on, the company has come far and long in creating an impact on and baffle investors and analysts in the company rise to fame. While having the third biggest market capitalization in the market, the company has given rise to the second wealthiest man in the country, Gautam Adani.

From ports, airports, energy, transmissions, and so on, Adani Group has its fair share of involvement In all major playing fields. But when you look at the rallying of the prices exponentially, you start to wonder how this mid-size market capped company made an impact in the country and became so affluent and powerful in such little time. to understand the factors behind this, we have illustrated them in detail below.

Adani Stock Price - Factors for the rallying of the prices

• The major reason behind the rallying of its stock prices has to be its real estate acquisitions. The ports that it has acquired and the power sectors set up. While the ports that the company has acquired has bought an insignificant change in their stock prices, the power plants set up for the same saw Adani Green shoot to power over a small period, winning the world's largest tender for setting up solar panels in the country worth billions of dollars.

• Another key reason behind the incremental rise would be attributed to the country's leasing of international and national airports. To date, the company has well over seven airports under them while aims to bag more.

• Consequently, the company is quite broadly diversified, and each sector of the company has contributed equally towards its exponential rise in valuation.

Bottom line

The Adani group has been quite influential in the country throughout 2020 as it has seen a tremendous rise in its valuation and market capitalization. Moreover, their port business, along with their leasing of international and national airports for more than 50 years and their surplus endeavors in the power generation sector, has seen the company soar in valuations profiting investors and other traders.

Tagged With: adaniadani poweradani greenadani transmissionsadani group
Categories: Stock Market
Ask your query and our expert community would be happy to help
Discussion (1)

    Almost every stock of the Adani group has seen an exponential rise. But then the major contributing factor to this has to be its constant acquiring of ports and airports in the country. With these profitable investments, there's no saying where the stock might be in the next 3-5 years.

Related FAQs

How to become a Successful Stock Trader? Share Trading Tips

To become a successful stock trader, there are a few tips and tricks to keep in mind. Learn and share how you can become a successful stock trader.

Is it a good time to invest in stocks? Bullish Stock Market

There are several questions that one can ask your advisor. These questions include whether its good time to enter or exit the market? Should in exit from debt and move to FD? do I continue my SIP portfolio? and other such questions.

How to get exposure in U.S stocks?

Investing in abroad markets has become quite easy these days. One can get direct and indirect exposure into the U.S. market through various methods. Investing in foreign markets like the U.S provides many benefits like Diversification into the top companies of the world, Benefit of Currency Depreciation, etc. Apart from directly purchasing the stocks listed on the U.S. stock exchanges, there are some different methods as well. Know the best methods of getting exposure to the U.S. stock markets.

What are Basic Necessities to Trade in Stock Market Hassle Free?

Learn the basic necessities to trade in stock market in India. Easy stock trading tips for a hassle free experience as a trader or an investor. All you require is an internet connection, laptop or smartphone, active bank account, demat and trading account and there you do, trading in the stock market is simple as booking the movie tickets online.

Can stocks be bought after market is shut down for next day?

Yes, stocks can be purchased after the stock market is closed. You can do so by placing an AMO which would be executed the next day once the stock market opens.

What is the minimum amount I need to start stock trading in India?

A common question that a newbie trader wishes to ask, what is the minimum amount I need to start stock trading in India? A query whose answer we probably look for to initiate our stock investment journey.

What is the difference between Listed vs Unlisted Stocks?

Listed and unlisted are the two types of stocks in which listed can be described as the ones registered in stock exchanges while unlisted is not registered.

If you had one crore rupees, which stocks would you recommend investing in?

There are many stocks of companies that could be invested in. For example, companies doing good in the FMCG sector, Healthcare sector, Banking sector, Consumer product sector could be invested in. these are just a few as plenty other companies could be invested in based on your requirements and strategy for investing.

How much money do I need to start Stock Trading in India?

Its all based on the share you wish to purchase. You can invest one rupee or two rupees in the stock market while there is no maximum cap on your investment.

How do stock brokers make money?

Stock Market is always at risk and involves around a lot of aspects. A daily news viewer also needs time to understand what is exactly going on. To actually dive into the world of stocks, it is important to read about the companies and their strategies and that is what stockbrokers do. They understand the company, do their research and expect the price of stocks by studying the company's ways of dealing with stock market strategies and also about the market forces. Let us now go through the actual topic and understand things better.