Right now Adani group has a combined market cap of $ 280 Billion
LIC increased their stake by 2%
International Investment in the offing - $2 Billion
Gautam Adani is world’s 6th richest person (Net Worth - $120 Billion)
Adani Group Debt over 6 Years - Increase by 66% (~$ 20.4 Billion )
Could these factors in itself be considered over valuation and lead to it being a big bubble which can burst ??
Foreign Investments 1
International Holding Company (IHC) os investing $2 Billion in Adani Green Energy, Adani Total Gas and Adani Transmission
In 2020 ans 2021 - Adani Gas and Adani Green got $3.1 Billion investment
Foreign Investments 2
Circa 2022, 1 FPI (Asia Investment Corporation, Mauritius) has investment >1% in Adani Group. It has invested 93% of its holdings into this group.
Is it a front for ____________________ ?
Foreign Investments 3
There are other FPI but <1% and do not need to be reported.
DII Investment is AdaniGroup is conspicuously absent
LIC and Adani
LIC - Increased stake in Total Gas, Transmission and Adani enterprises
Only Insurance company to be invested in Adani Group
Have not these stake purchases been at extremely high levels ??
LIC could have invested in other peers at better valuations
LIC and Adani 2
LIC decreased its holdings in Adani Ports and Adani Gas
India's Most Valued Companies
April 2021
No Adani Group company in India’s 20 most valued listed companies (Source: Prime Database)
April 2022
- 3 Adani Group companies in India’s 20 most valued listed companies - Adani Been Energy, Adani Transmission, Adani Total Gas
P/E Comparison
Adani Green -1109X vs Tata Power - 47X
Adani Total Gas - 473X vs IGL - 18X
Exception
Adani Ports and SEZ P/E 33X vs Gujarat Pipavav Port 22X
Justified valuations ??
The Ken reported in April 2021: Most Adani Co.'s had common FPI who had negligible investment in other Non Adani Companies. Public % of traceable shares was way small. This story made a fall of 25% in Adani Ent ( I remember making a killing in PE buying)
Justified valuations ?? 2
Adani Green -11% Tata Power -53%
Adani Total Gas - 5% IGL - 11%
RT if you find this thread useful. Thank you @TheKenWeb for writing it so succinctly.
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Basically increase in spending after receiving a raise instead of saving the additional income.
Or if monthly loan payment got over & extra cash now not saved but spent on non essential items
Once this takes over, new cash gets spent as fast as — or faster than — it comes in.
It's normal for lifestyle spending to increase when we get a better income. We want to treat yourself after working hard to make that money. Where it becomes problematic is when the increase in lifestyle outpaces the increase in income.
@NeerajGambhir says India's MPC may raise rates by as much as 100-150 basis points in the current cycle
Even if we take the repo rate to 5-5.25% over 12 months, the real yield will continue to be neutral to -ve. MPC stance of 100 -150 points would be somewhat accommodative.
10-year bond yield may settle between 7.25% and 7.50% assuming the rate hikes play out as expected
And RBI Support in first half of FY 22 - 23 by bond buying of Rs 1-1.5 lakh crore