This Indonesian Stock Is The World¡¯s Biggest Stock Winner of 2022 With Upto 1,600% Rally: Report
The share price of PT Adaro Minerals Indonesia has witnessed a whopping 1595% rally this year and tops the 2803-member Bloomberg World Index. The stock made its stock market debut this year on January 3 and is currently a mammoth 1177% up from that price.
In a turbulent year that has witnessed global stock markets bleeding, rising recession fears, monetary tightening, and the Russia-Ukraine war, a mining stock in Indonesia is in a world of its own. The stock is proving to be the world¡¯s best performer with a whopping 1,595% rally, as per a Bloomberg report.
Topping The Bloomberg World Index
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While the shares of PT Adaro Minerals Indonesia have moved sideways since sliding from a peak in April, they are still handsomely beating peers in the 2,803-member Bloomberg World Index.
It has managed to outperform runner-up Turkish Airlines in terms of returns.
Adaro has seen its share price skyrocket since its January 3 debut this year in Jakarta. Its share price catapulted from 100 Indonesian Rupiah to 2,990 Indonesian Rupiah in just over three months before a downshift took hold. It closed at 1,695 Indonesian Rupiah this week on Wednesday, with a market cap of about $4.5 billion (70.52 trillion Indonesian Rupiah). Currently, it is hovering around the 1725 Indonesian Rupiah mark on the Indonesia Stock Exchange, signalling a mammoth 1,177% return at the present price.
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Higher Returns Ahead?
While the stock's fortune has been closely tied to global coal prices, analysts reportedly remain optimistic to see more gains thanks to Adaro's strategy to use its windfall profit to diversify into aluminium and battery making for electric vehicles.
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482% Profit Jump
The company reported a 482% jump in net profit in the nine months through September 2022, as its average selling price more than doubled and coal sales volume jumped 41%. Forecasts from five analysts compiled by Bloomberg suggest another 42% upside in stock prices over the next 12 months.
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Adaro¡¯s price-to-book ratio of about 9.4 is near its lowest since listing, according to Bloomberg-compiled data, though it¡¯s about six times higher than that of its domestic peers, including PT Bukit Asam and PT Indo Tambangraya Megah. China¡¯s Shanxi Coking Coal Energy Group Co. and Australia¡¯s Whitehaven Coal Ltd.¡ªboth of which produce coking coal¡ªhave ratios of about 2, as per a Bloomberg report.
