The world’s most expensive stock — in terms of the customary parameters of price to earnings and book value multiples — is an Indian clean energy company that only got listed two years ago. Adani Green Energy NSE 0.46 % has a net worth of Rs 2,600 crore while its market capitalisation was Rs 1.62 lakh crore at the end of Thursday trade.
The stock of the company, which is striving to become the world’s largest renewable company in the next decade, has seen a 717% surge in just one year.
“Just like Tesla is in electric vehicles, Adani Green is a transformational story; it has the management bandwidth to scale and disrupt the electricity market in India and attract global debt and equity capital. But it is also fair to say for both firms the stock price appears divorced from the fundamentals,” said Tim Buckley, director, energy finance studies, at the US-based Institute of Energy Economics and Financial Analysis (IEEFA). “A $23-billion market cap company with another $2.5 billion of debt is trading well in excess of 12 times the replacement cost of its existing portfolio whereas most infrastructure companies trade at 1-2 times at best.”
[Arijit Barman and Rajesh Mascarenhas]