A multibagger in 8 sessions, this Adani stock is on a rampage on Street

Shares of Adani Total Gas have turned multibagger in just eight sessions giving 115% returns. On Thursday, the stock jumped 10% and hit the day’s high of Rs 1,053.30 amid significant volumes. Around 11 am, over 82.45 lakh shares changed hands on the NSE.

The stock has hit back-to-back 20% upper circuit this week. Even as other stocks have lost some pace, Adani Total Gas continues to run with zeal. It was the top gainer among the 10 Adani Group-owned company stocks on Thursday. Others including Adani Ports and Special Economic Zone, Adani Enterprises, Adani Green Energy, Adani Energy Solutions, Adani Wilmar, Adani Power, ACC, Ambuja and New Delhi Television (NDTV) gained up to 3% around this time.

The Adani Group stocks have been rallying on favourable triggers including the Bharatiya Janata Party’s (BJP) electoral wins in three key states in the Hindi heartland viz. Madhya Pradesh, Rajasthan, and Chhattisgarh, lending more confidence to the Street on the return of the incumbent government in the 2024 general election.

The Group also received a shot in the arm following a Bloomberg report that quoted an unnamed of the US International Development Finance Corporation (DFC) as saying that the allegations by Hindenburg Research were not relevant. The US agency had recently announced funding of $553 for the Group’s port business in Sri Lanka.

A less talked about trigger is the launch of a green hydrogen blending pilot in Ahmedabad on November 28 following which the stock witnessed a 14% single-day jump and since then it has been on the up barring a couple of minor declines the stock witnessed amid profit booking.

Under the project, the company has started blending green hydrogen in natural gas they sell to households for cooking purposes and industries as fuel in Ahmedabad. The percentage of green hydrogen, produced by splitting water using renewable electricity, to be blended in gas will gradually be increased to 8%, the company said in a statement.

Adani Total is the city gas joint venture of billionaire Gautam Adani’s group and French energy giant TotalEnergies, has started blending green hydrogen in natural gas they sell to households for cooking purposes and industries as fuel in Ahmedabad.Adani Total Gas shares are trading at a discount of 73% from its 52-week high of Rs 4,000 which the stock hit on January 23, a day before the Hindenburg report hit the Adani stocks. Its 52-week low stands at Rs 522.

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