Adani Group suffers Rs 3 lakh crore shock as stocks crash up to 20%

With Adani Ports, billionaire Gautam Adani's cash cow, leading the downside with 20% crash, shares of all 10 Adani Group companies on Tuesday fell as the counting of votes for the Lok Sabha elections showed that PM Modi may not win as many seats as expected in the exit polls.

Shares of Ambuja Cements, Adani Enterprises, Adani Energy Solutions, Adani Green, NDTV, ACC, Adani Total Gas and Adani Gas fell in between 18% to 12% each. The total market capitalisation of all the 10 Adani stocks fell by around Rs 3 lakh crore.

In yesterday's session, Adani stocks were among the top gainers as exit polls predicted that PM Narendra Modi will win elections with a thumping majority going well above 350 seats. Following the rally, Adani stocks had also erased all Hindenburg-era losses with its market capitalisation nearing the Rs 20 lakh crore mark once again after a gap of 16 months.

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In FY24, Adani Group's profit after tax (PAT) in FY24 jumped 55% to Rs 30,768 crore, while its EBITDA grew 40% year-on-year to Rs 660 billion.

At the end of FY24, the group's net debt at the group level remained stable at Rs 2.2 trillion in FY24 vs Rs 2.3 trillion. Net debt/EBITDA improved materially to 3.3x FY24 EBITDA vs 5x YoY. Adani Ports and Adani Power saw a drop in net debt in FY24. An increase in leverage for Adani Enterprises and Adani Green was on the back of new capex projects undertaken by companies, Jefferies said.

The global brokerage has buy calls on Adani Enterprises (target price Rs 3,800), Adani Ports (target price Rs 1,640), and Adani Energy Solutions (target price Rs 1,365).

Last week, CLSA identified Adani Ports, Adani Enterprises, ACC, and Ambuja Cement in its list of 54 Modi stocks. The list also includes PSUs and those belonging to several other corporates that are perceived as direct beneficiaries of PM Modi’s policies.

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With effect from June 24, Adani Ports will be included in Sensex.

As the conglomerate goes back to growth mode, Adani Enterprises and Adani Energy Solutions are planning to raise Rs 16,600 crore and Rs 12,500 crore via qualified institutional placement (QIP) or other permissible modes.