Adani Enterprises: AEL gets highest-ever rating in its credit history; shares up over 22% YTD
Adani Enterprises has achieved an upgraded long-term rating of AA Stable, marking its highest credit rating in history, reflecting improved capital management and credit profile over the past seven years, per CARE Ratings' update on bank facilities and Non-Convertible Debentures.
Adani Enterprises on Wednesday said that its long-term rating has been upgraded to AA Stable, the highest-ever rating in its credit history. The company said the upgrade serves as an independent validation of AEL’s disciplined capital management and tight fiscal prudence. “AEL has constantly strengthened its credit profile over the last seven years while executing an ever-increasing core infrastructure-led capex.
AEL’s stronger credit profile further enhances the resilience of its unique incubation platform and assures long-term value for its stakeholders.” According to the regulatory filing, CARE Ratings has provided a credit rating update for various facilities and instruments of Adani Enterprises Limited. The rating on long-term bank facilities worth ₹4,000 crore was upgraded from CARE AA- to Stable to CARE AA- Stable. Additionally, the rating on long-term/short-term bank facilities worth ₹16,505 crore was upgraded from CARE AA-Stable to CARE A1+ to CARE AA-Stable / CARE A1+, reflecting an upgrade in the long-term rating.Similarly, the long-term ratings on Non-Convertible Debentures (NCDs) across three tranches of ₹954.96 crore, ₹2,000 crore, and ₹3,000 crore were upgraded from CARE AA- to Stable.
Meanwhile, the ratings on short-term bank facilities worth ₹240 crore and commercial paper worth ₹2,000 crore were reaffirmed at CARE A1+.Adani Enterprises share price trend In the last six months, the stock has jumped 44%, compared with a nearly 1% decline in the benchmark Sensex. Year-to-date, it is up 22%, against a 14% decline in the Sensex. Adani Enterprises' share price hit a 52-week high of ₹3,245 on 6 July, after hitting a 52-week low of ₹1,753.45 on 30 March this year.
In its latest report, brokerage firm Motilal Oswal Financial Services maintained a buy call on the stock, with a target price of ₹3,880. The positive outlook came after the company's subsidiary, Adani Airport Holdings (AAHL), entered into a share subscription agreement and a shareholders’ agreement to raise ₹9,800 crore from a consortium of investors comprising Alpha Wave Global, Premji Invest, Temasek, and BlackRock-managed funds. In terms of financial performance, the company reported a consolidated net loss of ₹1,160 crore for the June-ended quarter, primarily due to a one-time charge of ₹2,644 crore, which was paid as a settlement amount to the US Office of Foreign Assets Control (OFAC). The company's revenue surged 49.9% YoY to ₹32,924 crore, up from ₹21,961 crore in the corresponding quarter of the previous financial year.Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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