Adani Group shares price today: Adani Group stocks fell in afternoon session today after rating agency CreditSights raised several concerns with regard to the conglomerate’s business. Its strong competition with Mukesh Ambani-helmed Reliance Industries could push Adani Group to make some imprudent financial decisions, said CreditSights.
While Adani Enterprises shares fell up to 4.03 per cent to Rs 2,929.05, Adani Ports and Special Economic Zone stock was trading 4.06 per cent lower at Rs 806 on BSE.
Other Adani Group stocks too were also trading in the red.
Adani Power stock was stuck in the lower circuit of 5 per cent at Rs 411.20 today and Adani Transmission shares touched an intraday low of Rs 3,319, down 4.57 per cent on BSE.
While Adani Green Energy lost 6.9 per cent to Rs 2,345.7, Adani Gas shares fell 3.93 per cent to Rs 3,240 level on BSE. Shares of another Adani Group firm Adani Wilmar fell up to 4.99 per cent to Rs 687.7 on BSE.
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CreditSights said the Adani Group has pursued an aggressive expansion plan in the past few years that has pressurised its credit metrics and cash flows. The credit note said that the Adani Group was venturing into new and/or unrelated businesses, raising concerns regarding spreading execution oversight too thin.
The rating agency stated, “As the two mega conglomerates in the Indian corporate sector compete for market share in a few new economy businesses (e.g., renewable power, telecom), it could lead to some imprudent financial decisions from both sides, such as higher capex spends, aggressive bidding, and overleveraging. On the whole, RIL has been on a deleveraging trend over the past few years, and boasts robust credit metrics (gross and net leverage at 2.6x and 2.2x as at end-FY22) and interest cover (7.8x at FY22),” further adding that Adani has elevated leverage and poor interest cover and cash outflows in almost all its entities and is at greater financial risk.
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CreditSights further pointed out that Adani Group is exposed to moderate levels of governance and ESH risks. “In the Adani Group’s favour, we take comfort in its solid banking relationships with both domestic and international banks, which have been willing to lend the group large amounts for both its existing businesses and new ventures,” it said.
“Overall, we remain cautiously watchful of the Group’s growing expansion appetite, which is largely debt-funded. We retain our existing market perform recommendations on the two Adani entities under our coverage, Adani Green Energy (AGEL) and Adani Ports and Special Economic Zone (APSEZ),” it said.
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