A total of six Adani group stocks lost 40 per cent in combined market value in FY2022-23 after seeing a dream run in the previous two financial years, as allegations of stock manipulation, money laundering and accounting frauds on group firms by a US-based short seller rattled investors, even as the group denied any wrongdoing.
At last count, the combined market capitalisation (m-cap) of Adani Enterprises, Adani Green Energy, Adani Ports and Special Economic Zone (Adani Ports), Adani Power, Adani Total Gas and Adani Transmission stood at Rs 7,55,670 crore as on March 29, which was 40 per cent lower than Rs 12,53,068 crore as of March 31, 2022.
For study, the recently acquired companies ACC, Ambuja Cements and NDTV were excluded from the list and so was Adani Wilmar that debuted last year on February 8.
Data showed the m-cap of these six stocks jumped 88 per cent in FY22 and a whopping 409 per cent in the previous fiscal. From March 31 2020 to March 31, 2022, these six Adani stocks had risen a solid 855 per cent!
The group m-cap started falling since September 2022 amid concerns over high debts, when Gautam Adani briefly became the world’s second richest, with $150 billion in personal wealth. The selling intensified following Hindenburg Research’s scathing report that alleged accounting frauds, stock manipulation and money laundering.
While Adani group stocks recently recovered after the group took measures to soothe investor nerves, they eventually snapped their winning run in FY23.
For FY23, Adani Total Gas emerged as the worst performer among the six stocks. Adani Total Gas fell 58.83 per cent for the financial year (till March 29), with its m-cap dropping to Rs 95,842.95 crore from Rs 2,36,322 crore a year-ago.
Adani Transmission was the second-worst with a 58.22 per cent drop. Adani Green Energy Adani Green Energy plunged 52.73 per cent while Adani Enterprises declined 20 per cent. Adani Ports was flat for the year. Most of these six Adani group stocks are not tracked by analysts. Adani Wilmar and Adani Ports are among two of these group stocks, which was analyst-backing post recent slide.
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