Adani Group Stocks Crash, Market Value Tank up to 19%

On June 4, Adani Group stocks plunged by 18%, wiping out over Rs 10 lakh crore in market value. Investors unwound speculative positions to secure profits or reduce market exposure. The previous session saw a surge, adding Rs 1.4 lakh crore and bringing the conglomerate’s market worth to nearly Rs 20 lakh crore. Adani Total Gas led the losses with an 18% drop, followed by Adani Energy Solutions at 12%, and Adani Power at over 10%. Other significant declines included Adani Green Energy and Adani Enterprises at 7%, Adani Ports at 8%, Adani Wilmar at 8.5%, Ambuja Cement at 9.6%, ACC at 9%, and NDTV at 12%.

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Adani Group Stocks Robust FY24 Earnings Drive Growth Amid Volatility

The volatility followed strong earnings for the fiscal year ending March 2024, with Adani Group’s EBITDA rising 40% YoY to Rs 66,000 crore. The group managed debt, reduced founders’ share pledges, and raised funds, rebounding from the Hindenburg report impact in late FY23. The total group EBITDA grew by 40% YoY, with a 5-year CAGR of 27%. Despite Adani Wilmar’s decline, most group companies saw EBITDA growth between 16% and 33%.

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Jefferies India noted the group’s expansion plans, eyeing a $90 billion capex over the next decade. The group’s net debt remained steady at Rs 2.2 lakh crore in FY24, with improvements in the net debt to EBITDA ratio, decreasing from 5x to 3.3x. Adani Ports and Adani Power reduced net debt, while Adani Enterprises and Adani Green increased leverage due to new projects.

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