Adani Group Stock Takes A Nosedive On The Election Result Day

Adani Group stocks dropped up to 18% on the election result day, 4 June 2024. After substantial gains in the last few trading sessions, it’s a big shock for the group. This drop appears to be caused by the unwinding of speculative positions, as investors aim to either take profit or reduce exposure. The Adani Group’s market capitalisation has now dropped to Rs 10 lakh crore. 

All of the entities under the Adani Group witnessed significant drops. The Ambuja Cement of Adani group dropped by 6.50% to Rs 627, Adani Enterprises fell by 5.915% to Rs 3429.80, Adani Green Energy dived 5.11% to Rs 1933.50 and ACC Limited came down by 4.52% to Rs 2556.50. Adani Wilmar fell by 3.94% to Rs 353.85, Adani Power dropped by 2.81% to Rs 850.40, and Adani Ports fell 6.09% to Rs 1488.50.

This session completely differed from the last when Adani stocks gained, adding Rs 1.4 lakh crore and bringing the total market value of listed entities to around Rs 20 lakh crore. 

Adani Ports, Ambuja Cement, and ACC are among the company’s “Mody Stocks” and can benefit from PM Modi’s policies.

Except for Adani Wilmar, the other group companies witnessed EBITDA (earnings before interest, taxes, depreciation, and amortisation) growth of 16 to 33 percent. 

Despite the market turbulence, the Adani group’s net debt remained steady at Rs 2.2 lakh crore in FY 24. This figure includes debt related to the acquisition of the cement business. Furthermore, there were notable improvements in net debt, decreasing to 3.3x in FY24 from 5x YoY (year-on-year), indicating a positive trend.

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