Adani Group Valuation Falls 52% During October 2022 and April 2023: Report

The Adani Group witnessed a decline of about 52 per cent, Rs 10.25 lakh crore, to Rs 9.54 lakh crore between October 30, 2022, and April 30, 2023, according to Hurun India’s 2022 Burgundy Private Hurun India 500 report. The combined value of top-500 companies fell by 6.4 per cent during the period.

Shares of Adani Group companies started in January 2023 falling after a controversial report was released by US-based short-seller Hindenburg Research. It alleged corporate malpractice, stock price manipulation and fraud by the Adani Group.

“The value of the top 500 companies from Burgundy Private and Hurun India list in India decreased marginally by 6.4 per cent to Rs 212 lakh crore from Rs 227 lakh crore as on October 30, 2022,” the report said.

It also said that with a value of Rs 16.3 lakh crore, Reliance Industries is India’s most valuable company, followed by Tata Consultancy Services (TCS) with Rs 11.8 lakh crore and HDFC Bank with Rs 9.4 lakh crore.

The ‘Burgundy Private Hurun India 500-Special Report’ was launched by Burgundy Private, Axis Bank’s Private Banking Business and Hurun India launched. It is a list of the 500 most valuable non-state-owned companies in India.

“By absolute value, the biggest gainers were HDFC Bank, ITC and Housing Development Finance Corporation. The value of four listed Unicorn’s — Nykaa, Zomato, Paytm and Policybazaar declined by Rs 7,872 crore during

the review period,” the report said.

It added that Serum Institute of India, the most valuable unlisted company in India, declined by 13 per cent to Rs 1,92,000 crore.

“Jindal Stainless emerges as the top gainer in terms of percentage growth, recording an impressive 213 per cent increase followed by Lloyds Metals and Energy with a growth of 93 per cent,” the report said.

Adani Total Gas lost 73.8 per cent (Rs 2,92,511 crore) and reached a value of Rs 1,03,734 crore. Adani Transmission saw a decline of 69.2 per cent (Rs 2,58,493 crore), while Adani Green Energy was down by 54.7 per cent (Rs 1,82,306 crore) during the period, it said.

Anas Rahman Junaid, MD and chief researcher of Hurun India, said, “We are witnessing a unique confluence of events, with the Russia-Ukraine war causing a surge in inflationary pressures worldwide, central banks increasing their key lending rates and funding winter for startups. Amid these challenging times, the companies featured in the Burgundy Private Hurun India 500- Special Report experienced a modest decline of 6.4 per cent over the past six months.”

He added that during this period, the Burgundy Private Hurun India 500 companies underperformed compared to major indices such as SENSEX and NASDAQ. While SENSEX remained flat, NASDAQ saw an impressive 11 per cent increase from October 30, 2022, to April 30, 2023.

“Of the 500 companies, 287 experienced a decline in total value, while 14 remained flat, and 24 dropped out of the list. The combined value of the top 10 companies remained flat at Rs 71.4 lakh crore, representing a significant portion of India’s GDP,” Junaid said.