Stock market crash today
:
Adani
Group companies experienced a significant downturn on Tuesday, with
Adani Ports
leading the decline with a 20% crash. The fall in share prices occurred as vote counting for the Lok Sabha elections indicated that PM Modi might not secure as many seats as predicted by exit polls.
Shares of various Adani Group companies, including Ambuja Cements, Adani Enterprises, Adani Energy Solutions, Adani Green, NDTV, ACC, Adani Total Gas, and Adani Gas, dropped between 12% and 18%.
The combined market capitalization of all 10 Adani stocks decreased by approximately Rs 3 lakh crore.
In the previous session, Adani stocks had been among the top gainers, driven by exit poll predictions suggesting PM Narendra Modi would win the elections with a substantial majority, surpassing 350 seats.
Also Check | Stock market crash live updates
The rally had also enabled Adani stocks to recover all losses incurred during the
Hindenburg
era, with the group’s market capitalization approaching Rs 20 lakh crore once again after a 16-month gap.
The Adani Group reported impressive financial results for FY24. The group’s profit after tax (PAT) surged by 55% to Rs 30,768 crore, while its EBITDA grew by 40% year-on-year to Rs 660 billion.
The group’s net debt remained stable at Rs 2.2 trillion in FY24, compared to Rs 2.3 trillion in the previous year. The net debt to EBITDA ratio improved significantly to 3.3x FY24 EBITDA, down from 5x year-on-year. Adani Ports and Adani Power experienced a reduction in net debt, while Adani Enterprises and Adani Green saw an increase in leverage due to new capex projects, as noted by Jefferies.
The global brokerage firm maintains buy recommendations on Adani Enterprises (target price Rs 3,800), Adani Ports (target price Rs 1,640), and Adani Energy Solutions (target price Rs 1,365).
CLSA recently identified Adani Ports, Adani Enterprises, ACC, and Ambuja Cement as part of its list of 54 “Modi stocks,” which includes PSUs and companies perceived as direct beneficiaries of PM Modi’s policies.
Looking ahead, Adani Ports is set to be included in the Sensex index starting from June 24. As the conglomerate focuses on growth, Adani Enterprises and Adani Energy Solutions plan to raise Rs 16,600 crore and Rs 12,500 crore, respectively, through qualified institutional placement (QIP) or other permissible modes.
