Adani Group rules post-pandemic rally in FY21, adds Rs 5.34 trn to m-cap

Gautam Adani family-controlled Adani Group was the biggest gainer on the bourses in 2020-21, amid the sharp surge in equity markets in a post-pandemic rally. The seven listed Adani Group companies had a combined market capitalisation (m-cap) of Rs 6.7 trillion on Tuesday — up more than 5x from the group’s m-cap of Rs 1.31 trillion at the end of March 2020.
 
To draw a comparison, the combined m-cap of the top listed companies in Business Standard’s sample is up 79.6 per cent in the last 12 months, while the m-cap of the top three business groups — Tata, HDFC, and Mukesh Ambani — is up 90 per cent, 72 per cent, and 89 per cent, respectively, in the period.
 
The analysis is based on a common sample of 1,056 companies that are a part of the BSE 500, BSE MidCap, and BSE SmallCap indices. Together these companies have a combined m-cap of Rs 196 trillion, accounting for 95 per cent m-cap of all the BSE-listed companies.
 
While compiling a list of winners, the Business Standard sample homed in on those with a group m-cap of Rs 1 trillion as on March 30. This disqualified many of the mid-sized and single-firm business houses from the list.
 
Among the mid-sized business groups, some of the top gainers include Motherson Sumi (up 231 per cent), Eicher Group (up 102 per cent), Divis Laboratories (up 80 per cent), Havells India (up 102 per cent), and Naveen Jindal (up 309 per cent), among others.
 
The surge in Adani Group’s fortunes on the bourses was led by its solar power venture Adani Green. The company’s m-cap jumped seven and a half times in the last 12 months to Rs 1.8 trillion, from Rs 24,000 crore a year ago. It pipped Adani Ports to become the largest group company by m-cap.
 
Adani Total Gas was, however, the top performing company in the group, with nearly 10x jump in its m-cap since the end of March last year. The company now has an m-cap of Rs 1 trillion — up from Rs 9,500 crore a year ago.
 
However, all Adani Group companies outperformed the broader market in the past few months as investors bet on the group’s ability to corner a bigger chunk of the country’s infrastructure sector. This includes loss-making Adani Power whose m-cap more than trebled in the last 12 months.
 
Adani was followed by JSW Group, which nearly trebled its m-cap in the last 12 months, owing to a sharp rally in the group’s flagship JSW Steel.
 
JSW Steel was among the top performing index stocks last year, with a 212 per cent rise in its m-cap — it gained from a surge in steel prices after the lockdown.
 
Hinduja Group is third on the list of gainers, with a 181-per cent rise in the group’s m-cap since March last year, led by IndusInd Bank. The bank’s m-cap was up nearly 3x since the end of March last year. Other gainers in the group include Ashok Leyland (up 164 per cent) and Hinduja Global (up 249 per cent).
 
Chennai-headquartered Murugappa Group was also a big winner last year. The group’s m-cap is up 175 per cent in the last 12 months, led by gains in companies such as CG Power and Industrial Solutions it acquired in November last year, Cholamandalam Investment and Finance Company, and Tube Investments of India.

 
Mumbai-headquartered Aditya Birla Group also topped the charts last year, thanks to a spike in m-cap of UltraTech Cement and its parent Grasim Industries. UltraTech’s m-cap has doubled in the last 12 months to reach Rs 1.95 trillion, while Grasim’s m-cap has nearly trebled to Rs 96,000 crore.
 
There were, however, a few losers last year because of an unprecedented rally on the bourses.
 
These mostly include groups with businesses which are either on the verge of going bust or whose operations have been disrupted by the pandemic, such as those with large exposure to the hospitality industry.
 
For example, loss-making Avantha Group was the biggest loser, with 75-per cent year-on-year fall in its m-cap last year.
 
This was followed by Future Group (down 38 per cent) and Ravi Raheja Group, which lost 27 per cent of its m-cap owing to a decline in the share price of Chalet Hotels.