Adani group combined market cap tops $100 billion

Currently, only Tata group, HDFC group and Mukesh Ambani-led Reliance group have higher market cap at the group level .The combined market cap of Adani group companies has topped the $100-billion mark. The combined value of the six listed companies led by Gautam Adani stood at $107 billion (Rs 7.84 trillion) on Tuesday.

Mumbai: Adani Group has become India’s third conglomerate to cross $100 billion in market capitalisation with shares of four of its six listed companies soaring to an all-time high on Tuesday.

The total market cap of the six listed Adani Group companies stood at over $104 billion, according to BSE data.

On Tuesday, Adani Enterprises hit an all-time high of ₹1202, up 5.6%, Adani Total Gas rose 6% to touch a record high of ₹1248, Adani Transmission jumped 5% to ₹1147, and Adani Ports gained 4% to an all-time high of ₹791.

Adani Power rose 5% to ₹98.40, while Adani Green Energy gained 2.3% to ₹1194.

Earlier, Tata Group and Mukesh Ambani led-Reliance Group have achieved this milestone. Tata Group’s current market cap was $242 billion while RIL Group’s mcap at $190 billion.

Total five firms in Adani Group currently have a market cap of over ₹1 trillion, while one — Adani Power Ltd — has an mcap of ₹38,000 crore.

Interestingly, five of its group companies — Adani Enterprises Ltd, Adani Green Energy Ltd, Adani Transmission, Adani Power Ltd and Adani Total Gas Ltd — have no coverage from any analyst.

Despite this, in the last one year, all six listed Adani group companies generated multi-bagger returns without any major fundamental factors.

Vinit Bolinjkar, Head of Research, Ventura Securities says that he believes that the current valuations of the Adani group’s listed companies are so high, that it seems to have priced in all the future business growth, which limits the further upside.

“Most of the Adani group stocks have very high debt on their balance sheets and promoters have also pledged their shares, which makes the stocks too risky to initiate coverage. That’s why most of the analysts prefer to stay away from Adani group companies”, said Vinit Bolinjkar, Head of Research, Ventura Securities.

Adani Ports & Special Economic Zone have 21 buys, 4 holds and 1 sell ratings, according to Bloomberg.

Analyst says that the recent surge in stock prices of Adani Group was after expanding rapidly into multiple operations by many group companies led earnings visibility in future.

“Adani group stocks have had a strong run over the last year mainly due to strong traction in renewables and large order wins. However, considering the sharp run-up, the valuations look stretched now. We would thus recommend waiting for correction before making any fresh investment”, said Ajit Mishra, VP Research, Religare Broking.

Source: mint