India’s investment landscape is witnessing a striking divergence in sentiment toward the Adani Group. While foreign institutional investors (FIIs) and GQG Partners pare down their stakes, domestic giants like mutual funds and LIC are doubling down on the conglomerate’s recovery story.
Mutual Funds Turn Net Buyers
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Mutual funds increased holdings in 7 out of 10 Adani stocks during the June quarter.
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Adani Energy Solutions saw the sharpest rise, with MF stake up 74 basis points to 3.19 percent.
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Other gainers include Adani Green Energy (+50 bps), Adani Ports (+40 bps), and Ambuja Cements (+10 bps).
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The only notable reduction was in ACC, where MF holdings dropped by 222 bps.
LIC’s Selective Strategy
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LIC boosted its stake in ACC by 142 bps to 9.11 percent and in Ambuja Cements by 125 bps to 6.80 percent.
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Positions in other Adani entities remained largely unchanged, with a minor trim in Adani Green.
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GQG and FII Exit
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GQG Partners exited Ambuja Cements and reduced stakes in Adani Green and Adani Power.
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FIIs cut holdings in 8 of 10 Adani stocks, with Adani Energy Solutions and Ambuja Cements seeing the steepest declines.
Market Context
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The Adani Group posted a record Rs 40,565 crore profit in FY25, with EBITDA at Rs 89,806 crore.
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Net debt to EBITDA improved to 2.6x, down from 3.8x in FY19.
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Jefferies recently added Adani Energy and Adani Ports to its value picks, citing strong growth and attractive valuations.
Sources: Economic Times, CNBCTV18, Telegraph India, NiftyTrader.