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Adani, Ambani outdid Sensex in painful FY20, thanks to a few chosen stocks

Mukesh Ambani-led Reliance group’s RIL and a microcap stock performed well.

, ETMarkets.com|
Last Updated: Apr 04, 2020, 10.27 AM IST
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Select corporate groups put up a relatively better show on Dalal Street compared with the Sensex’s 24 per cent fall for the year.
No corporate house went unscathed in the challenging FY20, the year that tested investor nerves with one after another major headwind, be it the US-China trade war, coronavirus outbreak, the NBFC crisis or the painful domestic slowdown.

Yet, select corporate groups put up a relatively better show on Dalal Street compared with the Sensex’s 24 per cent fall for the year.

For example, Adani group’s most-valued stock by market capitalisation, Adani Ports & SEZ, fell 33 per cent for the year, but Adani Green’s stellar 312 per cent surge, to an extent, nullified that fall in the group’s market value. Investors eroded Rs 27,200 crore in wealth in Adani Ports (m-cap at Rs 51,000 crore) but added Rs 18,200 crore to Adani Green’s (m-cap at Rs 24,000 crore).

Shares of Adani Enterprises, the Group’s flagship firm, declined 6.65 per cent for the year. Adani Transmission restricted losses to 13 per cent. Adani Power plunged 42 per cent and Adani Gas 32 per cent. Yet the combined market value of Adani Group stocks fell just 16 per cent to Rs 1.31 lakh crore from Rs 1.57 lakh crore a year ago.

Mukesh Ambani-led Reliance group’s Reliance Industries and a microcap stock performed well but the rest underperformed Sensex.

Shares of Den Network plunged 58 per cent for the year. Hathway Cable and RIIL declined 53 per cent and 36 per cent, respectively. Oil-to-telecom behemoth Reliance Industries itself declined 18.38 per cent, eroding market value from Rs 8.64 lakh crore a year ago to Rs 7.5 lakh crore.

Microcap Hathway Bhawani soared 141 per cent for the year, but could add very little to the group level market value, which stood at Rs 7.09 lakh crore at the end of the financial year, down 18.74 per cent from Rs 8.72 lakh crore a year ago.

For the Tatas, 25 of 28 group stocks fell anywhere between 9 per cent and 75 per cent. Yet at group level, the fall in market value was 16 per cent at Rs 9.30 lakh crore from Rs 11.1 lakh crore.

TCS, which fell only 9 per cent for the year to Rs 1,823, largely cushioned the fall. Tata Consumer Products, Trent and Rallis India also contributed, with gains of 45 per cent, 33 per cent and 6 per cent, respectively.

Some of the big names in the group saw painful value erosion; Tata Power fell 55 per cent, Tata Motors 55 per cent, Tata Chemicals 62 per cent and Tata Communications 62 per cent.

Among other prominent business houses, Aditya Birla group saw its market value fall by a whopping 41 per cent. Except for Shree Digvijay Cement (up 11.5 per cent), all other group stocks tumbled.

Vodafone Idea, now a penny stock, plunged 82 per cent. Tranfac (down 63 per cent), Aditya Birla Money (down 59 per cent), Aditya Birla Capital (down 56 per cent), Hindalco (down 53 per cent) and Grasim Industries (down 44 per cent) were the worst hit. UltraTech Cement with an 18 per cent fall outperformed the Sensex.

Anil Ambani-led ADAG group saw a similar 42 per cent erosion in market value to Rs 16,283 crore from Rs 28,132 crore. Reliance Capital and Reliance Home Finance declined 97 per cent each. Reliance Infrastructure dived 92 per cent, Reliance Power 89 per cent, Reliance Naval 85 per cent and RCom 84 per cent. Nippon Life gained 18 per cent for the year, though the group exited the business in the third quarter of the year with Reliance Capital left with just 0.93 per cent stake.

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