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Debt of Adani group:Can the conglomerate endure it?



What is a debt?

“Debt” can be a scary word to hear, but it is a priority for companies to run a smooth business, venturing into new horizons, and buying inventories. Debts such as home loans, vehicle loans, student loans, and business loans are good as they help one achieve his/her financial goals. Debts can be of various types depending on varying factors. While the company or individual benefits from the debt capital this way, the lenders benefit from the pre-determined rate of interest. Now let us go into the scope of the article. Where can we find the debt of a company from its financial statements?

Debt in financial statements

There are 3 widely known financial statements. They are the P&L statement, Balance sheet, and Cash flow statement. The debt of a company is accounted for in the balance sheet. This sheet is known as a balance sheet as the balance is achieved between the Assets and Liabilities and shareholder’s equity. And this equation is known as the accounting equation. The liabilities refer to the things the company owns such as loans, accounts payable, deferred revenue, and other tax liabilities. While liability is a common word to denote a company’s obligations, the debt of a company specifies the money or cash a company borrows.

What exactly falls under debt?

The formula to find the debt of a company is Total debt = Long term debt + Long term debt of a company. But in detail, it includes long-term debt, the current portion of long-term debt, short-term debt, financial lease obligations, and accrued interest. In this article, we will cover the obligations of the Adani group of companies.

Total debt
Total debt is aggregation of below factors:
Secured loans ( includes accrued interest) +
Unsecured loans +
Non-convertible debentures +
Non-convertible bonds +
Financial lease obligations +
Deferred payments +
Short-term borrowings.

Adani Group of companies

Let us see a short introduction to Adani Enterprises. Adani is a multi-sector conglomerate which consists of 7 publicly traded companies. This group has 23,000+ employees working for them under diversified sectors. The company over the years has grown to become a global leader in transport logistics and energy utility portfolio businesses. With 4 IG-rated businesses, it is the only infrastructure investment-grade issuer in India. The term IG-rated indicates a low risk of default. But the group has to pay huge dues. Let us see the companies owned by the Adani group.

  • Adani Enterprises Ltd
  • Adani ports and SEZ ltd
  • Adani Green Energy Ltd
  • Adani Total Gas Ltd
  • Adani transmission Ltd
  • Adani Power Ltd
  • Adani Wilmar

Let’s take a look at the company’s recent consolidated Banalce sheet to understand its debt. As Adani Group incorporates 7 publicly listed companies, we need to find the debt of each of those companies to arrive at the total value.

Company Total debt in crores
Adani EnterprisesRs.38,320
Adani Green energys. 54, 271
Adani ports and SEZRs.50,518
Adani TransmissionRs.34270
Adani total gasRs. 1420
Adani PowerRs.42300
Adani WilmarRs.35
Total debtRs.2,21,134 crores

While the Adani group has huge debt on its balance sheet, let’s see how ratings are given by international rating agencies. The bonds account for 39% of the group’s borrowings on March 31, 2023, which was 14% in 2016.

Credit rating by International agencies


Companies such as Moody’s Fitch and S&PCredit rating
Adani ports and SEZBBB, Baa3 ( with a stable outlook and negative outlook by a few agencies)
Adani transmissionB, Baa3(stable outlook and negative outlook by few agencies)
Adani Green LtdBa3, BBB, BB+, Ba1 all with stable outlooks

While the companies belong to either lower-medium default risk or belong to non-investment grade.

The Adani group in the news

  • The Adani group in a presentation shared with RBI shared that it has freshly borrowed Rs. 19,235 crores of debt, however, the company’s cash balance stands at Rs. 40,351 crores.
  • The Hindenburg research company is a US-based investment firm that specializes in short-selling. This company has made allegations against the Adani group that, the company is involved in brazen stock manipulations, accounting frauds, and a labyrinthian network for abnormal money movements.
  • Adani group is planning to use the freshly raised debt in Navi Mumbai airport and has plans to raise debt for the Mundra petrochem project under Adani Enterprises.

How much profit does the group make?

The current assets of Adani Enterprises Ltd(AEL) are Rs.37, 021.73 crores, which is very diminutive compared to its debt. The Debt to equity ratio of AEL is 1.2 and the beta is very high at 2.15 indicating a highly volatile stock nature. The PE is 106.73 indicating the stock is overvalued.

Loan repayment

Adani groups Net Debt to EBITDA ratio was at 3.27 before the repayment of a certain percentage of its debt. The Adani group paid off its margin-linked share-backed financing of $2.15 and $500mn debt from its acquisition of Ambuja cement. The group also paid $203M in interest in March before the deadlines. After this repayment, the company’s Net debt to EBITDA fell to 2.81. The cash balance of the group is Rs.40, 351 crores while the total assets are worth Rs.4.23 lakh crores which were at Rs.3.17 lakh crore in the previous year.

The net cash flow of Adani Enterprises Ltd is Rs.1882.33 crores for FY23 which has grown doubled from Rs.912.23 crores in FY22. Which is a stronger cash flow growth for a year. The group also saw an EBITDA growth of 36.2% YoY. The company’s huge dues doesn’t deter it from establishing positive growth potential. But Hindenburg’s report on the fraudulent activities the company performed made its stock prices and bond prices fall temporarily.

Another recent news mentions Adani is planning to sell its stake in Adani Wilmar. Adani Wilmar is an FMCG company that is also a joint venture between AEL and Wilmar, a Singapore based oil-maker. It is one of the top 10 FMCG companies in India with 23 manufacturing units around India. AEL is currently holding a 43.97% stake in the company. Speculations have risen the conglomerate will exit this business to fund its core infrastructure structure. Watch this space for updates and stock prices related to the Adani group.

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Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?



This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

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Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition



Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

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Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year



In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.

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