InvestorQ : Is it true that the Adani Group has been one of the biggest value creators in the last one year?
shrinidhi Rajan made post

Is it true that the Adani Group has been one of the biggest value creators in the last one year?

1 year ago

Yes you are right. In the last one year while all companies and business groups have added substantially to their market value, Adani group has been the pick of the lot. In fact, Gautam Adani’s personal wealth has soared from $5.5 billion to $56 billion in the last one year. But that is off the point. The real story is about the Adani group companies. The bull rally of FY21 benefited the large caps and mid-cap stocks in good measure but Adani stood out.

Here is a quick recap of the Adani group market value story in 2021.

· Adani group put up a stellar performance in FY21 of you just look at market accretion between April 2020 and March 2021.

· At the start of FY21, no Adani group company had market cap of Rs.50,000 crore. By the end of FY21, 5 Adani companies had crossed market of Rs.100,000 crore.

· Adani Green Power stood out closing the year close to a market cap of Rs.200,000 crore and becoming the most valuable Adani group company.

· The overall Adani group which had a market cap of Rs.165,819 crore at the start of FY21 closed the year with market cap of Rs.712,992 crore, almost at the $100 billion mark.

· Adani Total Gas was the star as its market cap went up from Rs.8,435 crore to Rs.116,387 crore in FY21 marking a growth of 13.79 times.

· Adani Green Energy rallied from as low as Rs.17,626 crore market cap to Rs.181,347 crore, which is a capital appreciation of 10.28 times.

· Adani Enterprises, the new business driver, saw market cap grow from Rs.12,785 crore to Rs.121,782 crore, which is again a growth of 9.5 times in just one year.

· Adani Transmission, which handles power distribution for the group, grew its market cap from Rs.18,388 crore to Rs.109,887 crore, which is a 6 times value accretion.

· The most profitable Adani Ports was a relatively modest performer with three-fold appreciation in market cap and even Adani Power saw 2.5 times accretion in FY21.

· In short, if you add up the value created by the 6 listed Adani group companies, then they have added $77 billion to market cap in FY21.