Adani Group stocks are in news for all sort of reasons in recent times. The Heidelberg report on Adani fueled the carnage in devbt laden stocks from the group. There were news about loan cancellation from Citibank followed by Smart meter order cancellation from State Government as well.
Amid all these bad news people wondering as if the worst is over for the group. The problem with Debt laden companies cannot be over sighted. We have seen the debt fueled growth coming to halt many a times in past as well. During all these the Investors are the ones who suffer the most as they are carried away by run up in these stocks only to discover one fine morning that those are under free fall.
The attempt of this article is to high light amount of debt each Adani Group company which is listed on exchanges has. This will give readers ample view of debt issues with these companies. Some may have less debt compared to others so they will be better placed.
Below table summarizes all the listed players from the group and borrowings they have.
| Company Name | Borrowings (in Cr) |
| Adani Enterprises | 41,604 |
| Adani Transmission | 29,902 |
| Adani Green Energy | 52,832 |
| Adani Ports | 47,619 |
| Adani Power | 48,744 |
| Adani Total Gas | 1,203 |
| Adani Wilmar | 3,035 |
As you can see above Adani Wilmar and Adani Total Gas are two stocks which have less debt compared to other stocks in the list. Stocks like Adani power and Adani green energy have highest debt levels among the list. The table easy gives you an idea about most debt heavy stocks from the group.
If you closely look at other details about these companies then you can see the mismatch between market cap they enjoy and profit they are generating. This is another food for thought about these companies. Below table provides details about the profit generated by these companies compared with the borrowing they have on their books. This gives you an idea about the repayment power of these companies based on current number.
| Company Name | Profit (in Cr) |
| Adani Enterprises | 788 |
| Adani Transmission | 1,236 |
| Adani Green Energy | 489 |
| Adani Ports | 4,795 |
| Adani Power | 4,912 |
| Adani Total Gas | 505 |
| Adani Wilmar | 808 |
If we see above table then Adani Green energy is least profit generating company from the group but have highest debt. Adani Wilmar is one of the stock with least debt but has good profit. The profit by debt for this company is least among all the group stocks. This makes it least risky bet out of the lot if we consider the profit and debt details shared in above two tables.
Considering the market capitalization of the group stocks will provide another insight into the euphoria valuation these companies commanded over a period of time. That will be other yardstick to judge these stocks as well. Now lets see the Market cap of these stocks at this moment of time. Note there is no change in the business model of the stocks in last couple of days so we are not considering that aspect in this article.
Now lets understand the market cap of these stocks in below table
| Company Name | Market Cap (in Cr) |
| Adani Enterprises | 1,79,548 |
| Adani Transmission | 1,40,156 |
| Adani Green Energy | 1,40,839 |
| Adani Ports | 1,17,954 |
| Adani Power | 70,333 |
| Adani Total Gas | 1,69,512 |
| Adani Wilmar | 49,384 |
If you see the table above the smallest company of the group is Adani Wilmar which is also the company with least profit / borrowing ratio. Other companies like Adani Green Energy rode the euphoria of green and clean energy and have appreciated in market cap over the last couple of years or so.
Adani power which is the most profitable company has the second least market cap out of the lot. Adani total gas does have low debt but has high profit by market cap value. It is second most valuable company with least profit generating company of the lot after Adani Green energy.
Based on simple analysis of data shared above it can be seen that most of the stocks from group have rosen beyond their intrinsic value to say the least. Smallest company of the lot is the one where one can see some value based on details shared. This is also the most alien company from other listed players as it is from FMCG sector whereas most of the others are from Infrastructure and power sector.