Indonesian company becomes world's biggest stock with 1,600% gain
This year has been a tough one for companies around the world. Supply chain issues, a war in Ukraine, rising interest rates, and recession fears have brought many share prices down. Amid all this, a company's stocks grew by a whopping 1,595%, to become the best-performing stock in 2022. The firm in question is a mining company from Indonesia called PT Adaro Minerals Indonesia.
Why does this story matter?
- This year's top stock performer is a company that made its market debut in January 2022. Surprising, isn't it?
- That's the right word to describe Adaro Minerals' meteoric rise this year. It had its lows but managed to push through with ease, mainly aided by rising demand for coal over the world.
- Its return margin is a clear indication of the company's dominant year.
Adaro Minerals delivered double the returns of the runner-up
In the 2,803-member Bloomberg World Index, PT Adaro Minerals sits handsomely at the top. Its shares have moved sideways after falling from a peak in April but continue to dominate the chart. It has delivered double the returns compared to Turkish Airlines, the runner-up on the list. According to forecasts, the company will continue its upward trend next year as well.
Its share prices catapulted in 3 months after its debut
Adaro Minerals, a subsidiary of PT Adaro Energy Tbk, made its stock market debut on January 3 at the Indonesia Stock Exchange (IDX). The company made its debut at 100 rupiah. By the end of March, its share prices reached 2,000 rupiah. After reaching its peak, the firm saw a downward shift in its fortunes before stabilizing. It is currently trading at 1,710 rupiah.
Global coal prices propelled the company's growth
Adaro Mineral's prodigious growth is chiefly connected to the global coal prices, which hit a record peak of $450/ton earlier this year. However, the company's business decisions have also played an important part in its growth. It used its windfall profit to diversify into battery-making for electric vehicles. From January to September, its net profit saw a 482% increase.