The world has seen many billionaires that have seen tremendous growth and built their empires from scratch. When we talk about billionaires back home in India, any conversation is incomplete without the mention of Ambani and Adani. These names had become synonymous with the word success in the country, especially Adani Group, due to the meteoric rise in recent years. With the recent release of the Hindenburg report, the downgrade by Moody’s Adani group stocks has taken a beating. Here are a few details of the Adani Group, their top companies, and the returns generated by Adani group companies.
About Adani Group
The world including India has been hearing about the achievements of the Adani Group for a few years now but the group was founded way back in 1988 as a commodity trading enterprise, Adani Enterprises. The Group today has diversified its business into various sectors and has 7 publicly listed companies. The core businesses of the company are in sectors like electric power generation and transmission, port management, mining, renewable energy, airport operations, food processing infrastructure, and natural gas.
Gautam Adani is the Chairperson of the Adani Group and was once the third richest person in the world. Also, Adani Group is among the top three biggest conglomerates in India with a market capitalization of approximately US$ 255.29 billion. The core philosophy that the group is built on is ‘Nation Building’ which is driven by the principles of ‘Growth with Goodness’. The Adani Group has its headquarters in Ahmedabad, Gujarat, and has a pan-India presence along with an international presence in about 50 countries.
The latest acquisitions of the Adani Group include ACC and Ambuja Cement making the conglomerate the second largest cement manufacturer in India as well as an approximately 29% stake in NDTV. Adani Group is also a huge name in philanthropy and CSR initiatives abiding by the company’s motto of nation-building. During the COVID pandemic, it is believed that Adani Foundation headed by Gautam Adani’s wife, Dr. Priti Adani, had contributed approximately Rs. 100 crore to the PM CARES Fund as well as Rs. 500 crore for Gujarat and Rs. 100 crore for Maharashtra.
Adani Group stocks and their returns
There are 7 stocks of the Adani Group that have seen tremendous growth in recent years. These stocks have seen a whopping 4000% jump from their FY 21 values and have helped in adding approximately Rs. 17.45 lakh crores to the investor’s wealth. The rapid wealth creation of Adani Group and Gautam Adani is a result of the sharp rally of the group stocks. Between Mar 2020 to August 2022, Adani stocks have seen a combined increase in market capitalization to the tune of Rs. 18.75 lakh crores from Rs. 1.31 lakh crores.
Given below are the key details of the Adani stocks and their returns
Adani Enterprise
Adani Enterprises is the flagship company of Adani Group and was founded in 1988. It is the holding company that is primarily engaged in the mining sector by mining trading coal and iron ore. The core subsidiaries of this company are Adani Wilmar (food processing), Adani Airport Holdings (airport operations), and Adani Road Transport (road development). It also has a presence in other sectors like defense and aerospace, agri-output storage and distribution, water infrastructure, solar PV module manufacturing, data centers, rail and metro infrastructure, real estate, cement, oil exploration, financial services, petrochemicals, etc. through its many subsidiaries.
The key details of the company are tabled below.
| Category | Details |
| Market Capitalization | Rs.1,89,257 crores |
| PE Ratio | 155 |
| Return on Equity | 4.12% |
| Debt Equity Ratio | 1.82% (March 22) |
| Promotor’s Holdings | 63.99% (June 22) |
| Share price | Rs. 1,660 (Feb 23) |
| Dividend Yield | 0.03% |
The trailing returns of Adani Enterprises as of Feb 2023 are tabled below
| Period | Trailing Returns |
| 1 year | -2.59% |
| 3 years | 89.84% |
| 5 years | 52.16% |
| 10 years | 26.10% |
Adani Green Energy
Adani Green Energy is part of the sunrise sectors in the economy and deals in renewable energy. The company is in the business of providing renewable energy through wind and solar power plants. Adani Green Energy has the merit of being the largest solar power developer by capacity. The total capacity of the plant is 12.3 GW.
The key details of the company are tabled below.
| Category | Details |
| Market Capitalization | Rs.1,03,540 crores |
| PE Ratio | 176 |
| Return on Equity | 42.4% |
| Debt Equity Ratio | 19.96% (March 22) |
| Promotor’s Holdings | 54.22% (June 22) |
| Share price | Rs. 653.56( Feb 23) |
| Dividend Yield | 0.00% |
The trailing returns of Adani Green Energy as of Feb 2023 are
| Period | Trailing Returns |
| 1 year | -63.1% |
| 3 years | 50.97% |
| 5 years | – |
| 10 years | – |
Adani Ports and SEZ
This is another significant part of the Adani Group. Adani Port and SEZ is the largest port private port company and SEZ (Special Economic Zone) in the country. Mundra Port is the largest port in the company which has 10 ports and terminals. The company is in the business of development, operations as well as maintenance of the port infrastructure.
The key details of the company are tabled below.
| Category | Details |
| Market Capitalization | Rs.1,20,341crores |
| PE Ratio | 23.64 |
| Return on Equity | 14.7% |
| Debt Equity Ratio | 1.20% (March 22) |
| Promotor’s Holdings | 47.81% (June 22) |
| Share price | Rs. 556.85 |
| Dividend Yield | 0.53% |
The trailing returns of Adani Ports and SEZ is tabled below as of Feb 2023
| Period | Trailing Returns |
| 1 year | – 22.87% |
| 3 years | 15.31% |
| 5 years | 7.09% |
| 10 years | 13.99% |
Adani Power
This company was established in 1996 and is the largest private sector power generation company in the country. The company has four thermal power projects in India and a combined installed capacity of 12,450 MW.
The key details of the company are tabled below.
| Category | Details |
| Market Capitalization | Rs.57,159 crores |
| PE Ratio | 5.64 |
| Return on Equity | 370% |
| Debt Equity Ratio | 2.61% (March 22) |
| Promotor’s Holdings | 46.64% (June 22) |
| Share price | Rs. 148 (Feb 23) |
| Dividend Yield | 0.00% |
The trailing returns of Adani Power as of Feb 2023 are tabled below
| Period | Trailing Returns |
| 1 year | 24.8% |
| 3 years | 37.43% |
| 5 years | 35.62% |
| 10 years | 11.11% |
Adani Transmission
This company was integrated into the Adani Group in 2013. Adani Transmission is in the business of commissioning, operations, and maintenance of electric power transmission systems. It also has the largest power transmission and distribution network in the country and has 17,200 circuit kilometers of transmission lines ranging between 400 to 765 kilometers.
The key details of the company are tabled below.
| Category | Details |
| Market Capitalization | Rs.119,469crores |
| PE Ratio | 108.95 (Feb 23) |
| Return on Equity | 18.6% |
| Debt Equity Ratio | 4.79% (March 22) |
| Promotor’s Holdings | 65.40% (June 22) |
| Share price | Rs. 1071 (Feb 23) |
| Dividend Yield | 0.00% |
The trailing returns of Adani Transmission as of February 2023 are tabled below
| Period | Trailing Returns |
| 1 year | -44.08% |
| 3 years | 49.31% |
| 5 years | 38.37% |
| 10 years | – |
Adani Total Gas
This is a gas distribution company that provides piped natural gas and compressed natural gas to both industrial and residential customers. The company has a presence in 41 GAs (Geographical Areas) in 74 districts making Adani Total Gas the largest city gas operator in the country.
The key details of the company are tabled below.
| Category | Details |
| Market Capitalization | Rs.124,613 crores |
| PE Ratio | 250 |
| Return on Equity | 20.72% |
| Debt Equity Ratio | 0.45 (March 22) |
| Promotor’s Holdings | 37.40% (June 22) |
| Share price | Rs. 1132.02 (February 23) |
| Dividend Yield | 0.01% |
The trailing returns of Adani Total Gas are tabled below
| Period | Trailing Returns |
| 1 year | 33.37% |
| 3 years | 92.40% |
| 5 years | – |
| 10 years | – |
Adani Wilmar
Adani Wilmar belongs to the FMCG sector and is a joint venture between Adani Enterprises and Wilmar International Limited. The company has the largest products range in the edible oils category which includes the Fortune Brand that has a 20% market share in the Indian market. This gem in the Adani Group is one of the fastest and largest growing companies in the FMCG category in the country
The key details of the company are tabled below.
| Category | Details |
| Market Capitalization | Rs. 51,129 crores |
| PE Ratio | 74.63 |
| Return on Equity | 11.98% |
| Debt Equity Ratio | 0.4 (March 22) |
| Promotor’s Holdings | 43.97% (June 22) |
| Share price | Rs. 393.6 (Feb 23) |
| Dividend Yield | 0.00% |
The trailing returns of Adani Wilmar as of Feb 2023 are
| Period | Trailing Returns |
| 1 year | 8.74% |
| 3 years | – |
| 5 years | – |
| 10 years | – |
Adani to address debt concerns from investors
As per market news, Adani Group will initiate discussions with bondholders in an effort to alleviate investor concerns after a significant drop in the value of its debt. Several banks, including Barclays, BNP Paribas, Deutsche Bank, and Standard Chartered, are arranging meetings on behalf of Adani Group companies with fixed-income investors, with calls scheduled for February 16 and 21, 2023. These meetings are taking place amid investor concerns over the companies’ debt levels following a sharp drop in the group’s market value triggered by a negative report from short seller Hindenburg Research, causing bond yields to soar.
Earlier, there was news that the group has hired accountancy firm Grant Thornton as an independent auditor following fraud accusations by Hindenburg Research. However, the conglomerate has termed this as ‘market rumors’ since it has no such plans.
Adani clearing debt
Adani Group has lost $120bn in market value following allegations of accounting fraud by Hindenburg Research, which the company has denied. Adani Group is now seeking to reassure investors by emphasizing its healthy balance sheet and paying off some of its debt, including a $500m bridge loan facility taken to buy stakes in cement companies ACC Ltd and Ambuja Cements Ltd.
Conclusion
The progress of Adani Group has been quite aggressive in recent years and the result of the same is the presence of the name Adani in every major sector, especially the sunrise sectors. This tremendous growth is also backed by huge debts that earlier seemed unprecedented for an organization. But the
FAQs
The total debt of the Adani Group has seen a huge increase from Rs. 1 trillion to Rs. 2.2 trillion over a period of the past 5 years.
Adani Group has recently acquired NDTV by gaining a 29% stake in the media house
Gautam Adani is worth US$ 148 billion making him the third richest person in the world
