Several Adani companies operate in high-growth sectors that require significant capital. While some carry substantial debt, others stand out for their strong fundamentals—solid financial performance, growth potential, and prudent balance sheets.
Here, we profile four fundamentally sound Adani Group stocks, selected based on consistent revenue and profit growth, low or manageable debt, and forward-looking expansion plans. Financial data has been sourced from the Equitymaster screener.
Adani Ports & Special Economic Zone
Adani Ports & SEZ is India’s largest private port operator. It manages a network of ports including India’s first port-based SEZ at Mundra and the deep-water trans-shipment port at Vizhinjam. It also operates international terminals in Haifa (Israel), Colombo (Sri Lanka), and Dar es Salaam (Tanzania), and is developing a port in Da Nang, Vietnam.
A fundamentally strong, consistently profitable company, Adani Ports reported a 5-year average return on equity (ROE) of 14.9% and return on capital employed (ROCE) of 13.1%. Its debt-to-equity ratio stands at 0.6, and has declined steadily over the past three years—making it one of the more financially disciplined companies within the group.
Looking ahead, Adani Ports aims to handle 800–850 million metric tonnes (MMT) of domestic cargo annually by 2030, with a total target of 1 billion tonnes including international volumes. Global cargo capacity is projected to reach 140-150 MMT, expanding the share of international operations.
The company is also scaling up its logistics footprint—warehousing, rail, and multimodal parks—with some analyst estimates projecting 49% annual growth in this segment through 2029. Adani Ports is also exploring new port opportunities in South Africa and across East and West Africa.
Adani Total Gas
Adani Total Gas, a joint venture between Adani Group and TotalEnergies, is a leading city gas distribution company in India. It supplies piped natural gas (PNG) to homes and businesses, and compressed natural gas (CNG) to the transport sector, across 53 geographical areas.
The company has maintained a relatively low debt-to-equity ratio of 0.4 and has posted consistent revenue and profit growth over the past five years. Its average 5-year ROE stands at 19.7%, and ROCE at 24.3%—among the highest in the group.
Looking ahead, Adani Total Gas plans to invest ₹160 billion over the next seven years to expand its CNG stations and gas pipeline network.
Its subsidiary, Adani TotalEnergies Biomass, is ramping up compressed biogas production, with the first phase already operational. The company is also expanding its EV charging infrastructure—currently operating 1,900 charging points across 22 states, with a target of 3,000 in the near future.
In a recent move, Adani Total Gas entered a strategic partnership with Reliance’s Jio-bp to share and dispense fuels at select outlets—potentially expanding its customer reach and network synergies.
ACC
ACC, one of India’s oldest and most respected cement companies, became part of the Adani Group in 2022. The acquisition—India’s largest in the infrastructure and materials space—marked the group’s entry into cement.
We include ACC for its decades-long operational track record, stable profitability, and a virtually debt-free balance sheet. Its 5-year average ROE is 9.3%, while ROCE stands at 12.4%.
For the March 2025 quarter, revenue rose to ₹6,066.5 crore from ₹5,408.7 crore a year earlier, although net profit declined to ₹749.2 crore from ₹942.7 crore.
The outlook for ACC is closely tied to India’s infrastructure and housing sectors. With the cement industry projected to grow at 6–7% annually—driven by an estimated $2.2 trillion infrastructure investment by 2030—demand prospects are robust.
To meet this, ACC plans to ramp up cement production capacity from 100 million tonnes per annum (mtpa) as of April 2025 to 140 mtpa by FY28. Its low debt means expansion can likely be financed comfortably through internal accruals.
Adani Power
Adani Power is among India’s largest private thermal power producers, with a current installed capacity of about 15,250 MW (17.55 GW). The company focuses primarily on coal-based thermal power.
With a healthy financial track record, Adani Power has posted an average 5-year ROE of 28.6% and ROCE of 21.6%. Its debt-to-equity ratio is 0.7, considered manageable given the capital-intensive nature of the sector.
The company plans to increase capacity to 30.7 GW by 2030, involving an investment of ₹1.2 trillion over six years. Most of this is expected to be funded through internal accruals—indicating strong cash generation.
Currently, 6,120 MW of capacity is under construction, with key projects underway at Mahan, Raigarh, Raipur, Mirzapur, Kawai, and Korba.
Conclusion
Several Adani Group companies operate in high-growth sectors backed by India’s development priorities—ports, power, gas, cement, and logistics. The group has laid out aggressive expansion plans, many of which align with government-led infrastructure and energy initiatives.
While valuations in some Adani stocks have already surged, long-term investors should assess each company’s fundamentals, governance standards, and future growth visibility before investing. Robust due diligence remains key.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated fromEquitymaster.com
