On June 4, the Adani Group's shares saw a decline of up to 18%. Following a run of increases over the previous several trading sessions, there was this sudden fall.
Investors unwinding speculative holdings appear to be the cause of the abrupt decline, either as a way to lock in profits or reduce market exposure. The Adani Group's market capitalization significantly dropped as a result of this correction, losing more than Rs 10 lakh crore.
The market value of the group's listed firms now stands at around Rs 20 lakh crore after the conglomerate's equities rose during the previous trading session, adding Rs 1.4 lakh crore to its value.
Adani Total Gas had the worst loss during the morning trading session, falling by about 18%.
Adani Power had a drop of more than 10%, and Adani Energy Solutions trailed with a 12% decrease. Adani Enterprises and Adani Green Energy both had a 7% decline.
Adani Wilmar fell by 8.5 percent, Adani Ports and SEZ by 8%, Ambuja Cement by 9.6%, ACC by 9%, and NDTV by 12%. The robust profits performance for the fiscal year ending in March 2024 had been the driving force behind the jump in the price of Adani Group's stock.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the conglomerate increased by 40% in FY24 to Rs 66,000 crore. This growth was YoY.
The market capitalization of Adani Group suffered when the Hindenburg report was released in late FY23.
Nonetheless, the organization prioritized debt management and lowering founders' pledged shares during FY24. At a compound annual growth rate (CAGR) of +27% during a five-year period, the group's total EBITDA increased by 40% YoY in FY24.
The group's market capitalization rose as a result of the promoters' rise in their ownership in group firms and the new money they raised from debt, equity, and strategic investors.
"The group is back on an expansion spree and eyeing a $90 billion capital expenditure over the next decade," Jefferies India stated in a report. We go over the group's success in FY24 and the future in the report.
EBITDA increase for the most of the group firms ranged from 16% to 33%; Adani Wilmar, on the other hand, had a decrease.
In FY24, the group's net debt, which includes debt from the cement business purchase, was the same at Rs 2.2 lakh crore as it was in FY23: Rs 2.3 lakh crore.
The net debt to EBITDA ratio showed improvement, falling from almost 5x YoY to 3.3x in FY24.
In FY24, net debt for Adani Ports and Adani Power decreased. On the other hand, additional capital expenditure initiatives that the firms undertook resulted in greater leverage for Adani Enterprises and Adani Green.
