Adani Group’s seven listed firms have a combined market capital of Rs 19.73 trillion, while Ambani-owned firms have an MCap of Rs 17.82 trillion. Tata Group is the India’s most-valued listed conglomerate with a market capitalisation of Rs 22.05 trillion.
Adani Group has become the second most valued Indian listed conglomerate in terms of market capitalisation, beating Mukesh Ambani Group that have much higher revenues.
Adani Group’s seven listed firms have a combined market capital of Rs 19.73 trillion, while Ambani-owned firms have an MCap of Rs 17.82 trillion. Tata Group is the India’s most-valued listed conglomerate with a market capitalisation of Rs 22.05 trillion.
Despite its higher debt, investors continued to buy Adani Group firms after they expanded and diversified into multiple businesses, leading to earnings visibility in the future. The Adani Group’s gross debt went up by 41 percent to Rs 2.2 trillion as of March 31, 2022, from Rs 1.55 trillion a year ago.
So far this year, Adani Power Ltd surged 333 percent, Adani Total Gas Ltd 98 percent, Adani Green Energy Ltd 98 percent, Adani Transmission Ltd 107 percent, Adani Ports and SEZ 17 percent and Adani Enterprises Ltd gained 81 percent. Adani Wilmar Ltd was listed in February with an issue price of Rs 230 a share. Since then, it has climbed 217 percent.
Four firms in the Adani Group have a market capital of nearly Rs 4 trillion, while Adani Power Ltd and Adani Ports and SEZ have a market capital of Rs 1.6 trillion and Rs 1.8 trillion. Adani Wilmar’s MCap stands at Rs 94,253 crore.
The Adani Group has incubated various businesses like transmission, renewable energy and city gas distribution, which have now become big businesses. Its current focus is on areas like telecom, airports, data centres, solar manufacturing, roads, defence and green businesses.
Analysts say some of the current businesses have shown an improvement in fundamentals while others have made announcements about entering sunrise sectors.
Ambani-led Reliance Group stocks are also trading firm with most analysts giving bullish ratings. In its recent annual report, the firm said FY22 fiscal saw record profitability and margins for RIL’s consolidated operations, with growing scale of the consumer businesses complemented by recovery in oil to chemicals. The share of consumer businesses (retail + digital) in consolidated revenues/EBIT has grown from just 15/10 percent in FY18 to 26/42 percent in FY22.
“We are over weight based on (1) a global view of a strong refining environment, although we build in a decline in product cracks from current levels, and (2) RIL’s non-energy business valuations continuing to hold up. We value oil-to-chemical business at an enterprise value (EV) of $83 billion, and value retail at $121 billion with a Jio Mart value of $40 billion. We also assign a 2x investment value for the proposed green energy/renewable investment,” said a JP Morgan report to its investors.
