Adani stocks trading at valuation premium over Sensex companies

Even after recent carnage, group firms' trailing P/E multiple at 29.4x, against 22.5x of 30-pack index

The meltdown in Adani Group companies’ market capitalisation (m-cap) in the past month had led to a sharp decline in equity valuation, but group companies continue to trade at a premium to the valuation of the S&P BSE Sensex. This, observed analysts, exposes its shareholders to further downside in stock price, unless Adani Group companies report a big surge in earnings in the quarters ahead.

The 10 Adani Group companies were trading at a trailing price-to-earnings (P/E) multiple of about 29.4x on Monday on average — still, nearly 30 per cent premium to the Sensex trailing P/E of 22.5x.

Similarly,