Adani Group stocks nosedived up to 25 percent on June 4, getting brutally hammered after experiencing substantial gains in the last couple of trading sessions. Of the Rs 45 lakh crore eroded from the market capitalisation of all listed companies on BSE, more than Rs 3 lakh crore was wiped from Adani Group firms.
The sudden drop appears to be driven by the unwinding of speculative positions, as investors take profits or reduce their exposure.
In the previous session, the conglomerate's stocks gained, adding Rs 1.4 lakh crore to the value, taking the total market value of the conglomerate's listed entities to nearly Rs 20 lakh crore.
In morning deals, Adani Total Gas was the top loser, falling nearly 18 percent. Adani Energy Solutions slumped 12 percent, Adani Power fell over 10 percent, Adani Green Energy was down 7 percent, Adani Enterprises also fell 7 percent.
Adani Ports and SEZ tanked 8 percent, Adani Wilmar down 8.5 percent, Ambuja Cement slipped 9.6 percent, ACC tanked 9 percent while NDTV was down 12 percent.
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Adani Group stock had been on a stellar run following robust earnings performance for the fiscal ended March 2024. The group's EBITDA surged by 40 percent YoY to Rs 66,000 crore in FY24.
Adani Group's m-cap was hit by the Hindenburg report in late FY23. During FY24, the group focused on containing debt, reducing founders' share pledge. Total group EBITDA grew 40 percent YoY in FY24 (5yr CAGR:+27 percent) group raised fresh funds from equity/debt/strategic investors, promoter increased stake in group Cos and group Mcap rebounded.
"The group is back on expansion spree and eyeing $90 billion capex over next decade. In the report, we discuss the group's FY24 perf and way ahead," Jefferies India said in its note.
Other group companies saw EBITDA growth ranging from 16-33 percent, except Adani Wilmar which experienced a decline. The group's net debt, including debt related to the acquisition of the cement business, stayed steady at Rs 2.2 lakh crore in FY24 compared to Rs 2.3 lakh crore.
There was a significant improvement in net debt/EBITDA ratio, decreasing to 3.3x in FY24 from around 5x YoY.
Adani Ports and Adani Power observed a reduction in net debt during FY24. However, Adani Enterprises and Adani Green experienced increased leverage due to new capital expenditure projects undertaken by the companies.
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