The Centre’s decision to exempt customs duty and agri cess on annual imports of crude soyabean and sunflower oil for two financial years and other factors have hit Adani Group hard. The net worth of the 59-year-old business tycoon, Gautam Adani, who is the founder and chairman of port and energy conglomerate Adani Group, fell over 20 percent in the past one month, as per Forbes' Real-Time Billionaires List.

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Richest Asian

Indian business mogul Gautam Adani witnessed a meteoric rise in fortunes in the past two years, becoming one of the centi-billionaires in the world with fortunes of over $100 billion. According to Forbes estimates, he was the richest Asian billionaire as on April 11.

According to Forbes' Real-Time Billionaires List, Adani and family were worth $125.5 billion on April 27.

However, as on May 26, Forbes' Real-Time Billionaires list showed Gautam Adani’s networth was down at $100.3 billion.

Fall in Adani Wilmar shares

Shares of edible oil producer Adani Wilmar, which opened on the downside today on the Bombay Stock Exchange (BSE), hit the lower circuit for the third successive session, at Rs 631.65 per share. Yesterday, shares of Adani Wilmar and Ruchi Soya Industries were down by 5 percent as investors booked profit at these counters.

However, stocks of Adani Wilmar have had a strong run-up in the past three months zooming 82 percent as compared to the 3 percent decline in the benchmark index, Business Standard reported.

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Why is Adani Wilmar stock falling?

Edible oil prices are expected to come down in the near term on the back of the government’s exemption on duty and cess on the imports of crude soyabean and sunflower oil. As a result, Adani Wilmar is likely to see lower quarterly numbers, Mint quoted Avinash Gorakshkar, head of research at Profitmart Securities, as saying.

“So, Adani Wilmar shares are expected to remain in downtrend in near term,” Gorakshkar said.

Adani Ports

On Wednesday, shares of Adani Ports and Special Economic Zone Limited (APSEZ) fell by about 5 percent after the company reported a 21.78 percent decline in its consolidated net profit for the quarter ended March at Rs 1,033 crore.

In the corresponding period last year, the country's largest integrated logistics player had registered a consolidated net profit of Rs 1,321 crore..

On Thursday, the stock was trading 2.22 percent lower than Wednesday’s close at Rs 692.70 on the BSE when this story was published.

Heat in May

Despite clocking a good growth in the past few years, shares of Adani Group companies came under pressure in May due to a sell-off in the broader market. In the month of May, the group companies’ combined market capitalisation fell 13.8 percent, or Rs 2.31 trillion, more than Mukush Ambani-led Reliance industries.

ALSO READ: These stocks propelled Gautam Adani to become fifth richest person in the world

Adani Wilmar share price has also tumbled 21 percent in the last one month. However, as the stock was a multi-bagger stock in 2022, it has delivered about 135 percent return to its shareholders this year.

No need to fear

On the other hand, a report by Business Standard said the ongoing equity market correction has hardly dented the sky-high valuation of Adani Group companies, which continues to remain the most expensive stocks on the bourses.

As on Tuesday, the seven listed companies of the Adani Group had a combined market capitalisation of Rs 14.44 trillion. The companies posted a combined net profit of Rs 13,715 crore in 2021-22 and were worth Rs 94,442.5 crore at the end of FY22.

Since December 2019, the market cap of the seven companies grew 617 percent compared to 84 percent growth of Reliance Industries’ (RIL’s) stocks during the period.

According to analysts, Adani Group companies continue to enjoy a high valuation because investors expect the group to grow at a faster pace as it invests aggressively in its existing businesses and enters new segments, the Business Standard report said.

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(Edited by : Sudarsanan Mani)