While 'green' stocks worldwide struggled amid an overall volatile environment in the past year, Adani Green Energy Ltd — a renewable energy company owned by India's richest person has skyrocketed in value.
The Gautam Adani-owned company's stock has been investors' hot favorite in the green energy segment. On Monday, the company replaced the country's largest lender State Bank of India, to grab the seventh position among the most valued companies on the Indian bourses. According to India's benchmark index Sensex data, Adani Green Energy's market cap rose to an all-time high of $61 billion (INR 4.69 Lakh crore), with its stock hitting a fresh historic high daily in the past few trading sessions.
AGEL stock not only made billions for its founder but also turned out to be a multibagger for the shareholders. The shares have risen almost 114.57% in value this year. Meanwhile, popular green energy-oriented stocks in the U.S. such as Tesla Inc TSLA, NextEra Energy Inc NEE, Brookfield Renewable Partners LP BEP, First Solar, Inc. FSLR, FuelCell Energy Inc FCEL, and Plug Power Inc PLUG have seen significant slumps in the same time period.
Tesla stock is down 16.3% this year, NextEra — 10.8% Plug Power — 11.25%, FuelCell — 11.9%, and First Solar has slumped 11.2%. Brookfield is an exception, up 4.3% year-to-date.
What Brought The Rally In Its Shares: The staggering rally in the Adani Green stock came amid the backdrop of India's commitment to becoming a net carbon zero economy by 2070 at the COP26 Summit in 2021.
The conglomerate's energy arm also bagged fresh investment from Abu Dhabi-based International Holding Company PJSC (IHC), which would invest around $500 million as primary capital in AGEL. "This will help deleverage the balance sheet, strengthen the credit rating profile, thereby helping reduce the cost of capital and support future growth," the company said.
Meanwhile, Mukesh Ambani-owned Reliance Industries Ltd continues to hold the top spot in most valued companies in India — with an overall market cap of $235 billion.
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