Fundamentally Strong Adani Stocks

The Adani group is a diversified group, with strong presence in infrastructure, energy (both thermal and renewable), ports, and cement.

Some of the companies from the group are in fast growth sectors that also need heavy investment. Most of the companies have performed well, though some have substantial debt.

Let's take a look at some of the Adani group stocks that are fundamentally sound. We have considered a consistent track record of revenues and net profits over the years. Also considered is good potential growth rate as well as low or negligible debt.

We have used some data from Equitymaster screener for the Top Adani group stocks.

#1 Adani Ports & Special Economic Zone

First on our list of fundamentally strong Adani group stocks is Adani Ports & Special Economic Zone (Adani Ports).

Adani Ports is India's largest private port operator. It operates India's first port-based SEZ at Mundra and the first deep-water transshipment port at Thiruvananthapuram.

The company manages international ports in Israel (Haifa), Sri Lanka (Colombo), Tanzania (Dar es Salaam), and is developing a new port in Da Nang, Vietnam.

Adani Ports is a fundamentally strong company from the Adani group. It has been reporting consistent profits in the last few years.

Apart from this, its 0.6 times debt to equity is much better than some other group companies. This ratio has also been reducing over the last three years. The future ambitions and strong international presence are other reasons why the stock finds place at the top.

Adani Ports Financial Snapshot (FY20-25)

(Rs m, consolidated)	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025
Net Sales	125,496	171,188	208,519	267,106	304,753
Net Profit	50,487	49,532	53,909	81,040	110,613
Return on Equity (%)	16.5	12.9	11.8	15.3	17.7
Return on Capital Employed (%)	13.5	10.6	10.8	14.3	16.4

Source: Equitymaster

The average 5-year return on equity of Adani Ports has been 14.9%, while the average ROCE has been 13.1%.

Moving forward, Adani Ports aims to handle 800-850 million metric tonnes (MMT) of domestic cargo by 2030, with an overall target of 1 billion tonnes of cargo annually including international volumes. The international cargo capacity is expected to grow to about 140-150 MMT by 2030, increasing the share of global operations.

The logistics segment, including warehouses and multimodal parks, is expected to grow rapidly, becoming a significant contributor alongside ports. Some estimates by analysts place it at 49% growth annually until 2029.

The company is also actively pursuing global growth. It is scouting for port projects in South Africa, East and West Africa. If these opportunities fructify it will lead to further acceleration in growth.

To know more check Adani Ports fact sheet and latest quarterly results.

#2 Adani Total Gas

Second on our list is Adani Total Gas.

Adani Total Gas is a leading city gas distribution company in India that supplies Piped Natural Gas (PNG) to residential, commercial, and industrial customers, and Compressed Natural Gas (CNG) to the automotive sector.

The company operates across more than 53 geographical areas in India.

This too is a fundamentally sound Adani group stock. The company has relatively low debt to equity ratio of 0.4 times, when compared to group companies. This apart there has been good growth in revenues and sales for the last 5 years. Plans for the future too are encouraging.

Adani Total Gas Financial Snapshot (FY20-25)

(Rs m, consolidated)	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025
Net Sales	16,067	28,693	40,730	41,330	45,880
Net Profit	4,720	5,094	5,465	6,675	6,544
Return on Equity (%)	24.4	21.1	18.6	18.6	15.6
Return on Capital Employed (%)	30.0	26.6	25.3	22.6	17.0

Source: Equitymaster

The average 5-year return on equity of Adani Total Gas has been 19.7%, while the average ROCE has been 24.3%.

Moving forward, Adani Total Gas plans to invest Rs 160 bn over the next seven years to expand its CNG stations and pipeline network.

On the biogas front, Adani TotalEnergies Biomass is developing biogas plants producing compressed biogas (CBG), with the first phase operational and ramping up to 10 tons.

Adani Total Gas has also expanded its EV charging infrastructure, operating over 1,900 charging points across 22 states with a target to reach about 3,000 charging points shortly.

Recently, Adani Total Gas and Reliance's Jio-bp entered into a strategic partnership to share and dispense each other's fuels at select outlets across India. This is likely to benefit both the companies.

To know more check Adani Total Gas fact sheet and latest quarterly results.

#3 ACC

Third on our list is cement major ACC.

ACC is one of India's leading cement and building materials companies, now part of the diversified Adani Group portfolio.

The Adani Group acquired ACC in 2022. The acquisition was the largest ever acquisition by the Adani group and India's biggest merger and acquisition in the infrastructure and materials space.

We have chosen ACC because of its decades of track record in the cement space, consistent track record of profitability, and a near zero debt status.

ACC Financial Snapshot (FY20-25)

(Rs m, consolidated)	Dec-20	Dec-21	Mar-23	Mar-24	Mar-25
Net Sales	137,860	161,517	222,102	199,589	217,623
Net Profit	14,303	18,631	8,852	23,351	24,023
Return on Equity (%)	11.3	13	6.3	14.3	12.9
Return on Capital Employed (%)	13.9	17.9	9.1	17.8	17.4

Source: Equitymaster

On the financial front, the average 5-year return on equity of ACC has been 9.3%, while the average ROCE has been 12.4%.

For the quarter ending March 2025, ACC had a mixed performance. Revenues saw a rise, while net profits dropped.

Revenues increased to Rs 60,665 m from Rs 54,087 m in the corresponding period of last year. Net profits for Q4 FY25 dropped to Rs 7,492 m from Rs 9,427 m in the previous year's quarter.

The prospects of the company in the future depend on infrastructure and real estate development. The Indian cement sector is expected to grow 6-7% annually, supported by a projected US$ 2.2 trillion infrastructure investment by 2030.

To meet this demand, ACC, under the Adani Group, has ambitious expansion plans. The company plans to increase its cement production capacity from 100 mtpa (million tonnes per annum) as of April 2025 to 140 mtpa by FY28. This would mean a sharp uptick in the next few years.

Given the very low debt of the company, funding should not be an issue.

To know more check the ACC fact sheet and latest quarterly results.

#4 Adani Power

Next on our list is Adani Power.

Adani Power is one of India's largest private sector thermal power producers with an installed capacity of approximately 15,250 MW as of early 2025. The company primarily focuses on coal-based thermal power generation.

Again, like other stocks highlighted above, Adani Power too has a long track record of profitability and growth. The debt to equity is reasonable at 0.7 times, which is another reason to highlight Adani Power.

Adani Power Financial Snapshot (FY20-25)

(Rs m, consolidated)	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025
Net Sales	262,215	277,112	387,733	503,513	562,031
Net Profit	12,700	49,116	107,266	208,288	127,496
Return on Equity (%)	9.7	26.3	35.9	48.3	22.6
Return on Capital Employed (%)	13.9	18.9	17.3	34.7	23.5

Source: Equitymaster

On the financial front, the average 5-year return on equity of Adani Power has been 28.6%, while the average ROCE has been 21.6%.

Coming to the outlook for the company, Adani Power aims to increase its installed capacity from the current 17.55 GW to about 30.7 GW by 2030.

This expansion involves a planned investment of around Rs 1.2 tn over the next six years. The company aims to primarily funded the same through internal accruals, reflecting strong cash flow generation from operations.

Currently, about 6,120 MW of capacity is under construction, including major projects at Mahan, Raigarh, Raipur, Mirzapur, Kawai, and Korba phases.

The expansion plans at the company are robust, in line with most other Adani Group companies.

To know more check Adani Power fact sheet and latest quarterly results.

Conclusion

All of the Adani group stocks have ambitious growth plans for the future.

The group has a presence in high-growth sectors such as infrastructure, energy and green energy. India's expanding economy and government initiatives like port modernisation and renewable energy targets should benefit some of Adani group companies going forward.

However, this has already led to hefty valuations in some of these stocks.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...