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For the first time ever, an Asian businessman, Gautam Adani, surpasses Bernard Arnault of France to become the third richest person in the world. With a net worth of $137 billion, the 60-year-old business tycoon ranks third on the coveted list behind Elon Musk and Jeff Bezos.

Elon Musk, the CEO of Tesla, net worth is $251 billion, while the net worth of Jeff Bezos, the founder, and CEO of Amazon, stands at $153 billion.

The net worth of Bernard Arnault, who slipped to fourth place, has come down to $ 136 billion due to a decline of $ 1.37 billion. India's Mukesh Ambani is out of the top 10 on this list and his wealth is at $ 91.9 billion.

Personal Life

Adani, who was born in a middle-class family in the western state of Gujarat's Ahmedabad, dropped out of college to take a temporary job in the diamond business before starting his export business in 1988. He was given a contract in 1995 to construct and run a commercial shipping port in Gujarat's Mundra, which has subsequently expanded to become India's largest port. Adani expanded at the same time into coal mining and thermal power generation in India and abroad.

Adani Group and its Business

Gautam Adani is a co-founder of the Adani Group, which operates the largest port and trades in coal in India. Adani's estimated net worth increased from $71.4 billion to $143 billion in the previous year. According to Forbes, Adani Group generates $13 billion in annual revenues.

After Tata Group and Reliance Industries, Adani Group is the third-largest conglomerate in the nation. Adani Enterprises, Adani Green Energy, Adani Ports and Special Economic Zone, Adani Power, Adani Total Gas, Adani Wilmar, and Adani Transmission are seven of the firms that are listed on the BSE. These seven publicly listed firms are listed in different sectors like energy, ports and logistics, mining and resources, gas, defense and aerospace, and airports industries In its respective business sectors, the Group has developed a dominant position in India.

Airports, cement, copper refining, data centers, green hydrogen, petrochemical refining, highways, and solar cell manufacturing are just a few of the new emerging industries that Adani Enterprises has extensively invested in over the past five years.

Adani is growing its corporate empire by purchasing companies in many industries. Adani Groups has made some significant purchases, including:

Media

On August 23, Adani Group stated that its subsidiary AMG Media Network Ltd (AMNL) has begun the process to buy 99.99% of NDTV promoter RRPR Holding through Vishwapradhan Commercial (VCPL) (RRPR). An open offer to acquire up to 26% of NDTV will be made as a result.

Cement

In May of this year, Adani Group announced that it will acquire Holcim AG's Indian cement operations, for $10.5 billion making it the No. 2 cement producer in the world. The transaction is the biggest Adani acquisition that has ever been made.

Power

On August 19, Adani Power announced that it will acquire DB Power, the operator of thermal power plants, for an enterprise value of Rs 7,017 crore.

Port

In mid-July, Israel announced that it had agreed to a $1.18 billion deal to sell the Haifa Port, a significant commercial hub on its Mediterranean coast, to Adani Ports and the nearby chemicals and logistics company Gadot.

Road Ahead

Earlier this month, Adani Enterprises announced that a subsidiary will buy the toll roads in the Indian states of Andhra Pradesh and Gujarat from Macquarie Asia Infrastructure Fund for Rs 3,110 crore.

Mumbai International Airport was elevated to the status of leader in Asian infrastructure in 2020 after Adani acquired a 74% ownership stake in it.

Adani claims he wants to be the biggest producer of green energy in the world and plans to invest up to $70 billion in renewable energy.

The board of directors of FSN E-Commerce Ventures Ltd (Nykaa), an online retailer, announced bonus shares in the ratio of 5:1, or five bonus shares for every one share held. The business announced its plan to issue 2,37,27,61,850 equity shares to its stockholders, each with a face value of Rs. 1. The paid-up share capital as of the record date will be used to calculate the precise number of bonus equity shares to be issued. This would be the beauty and fashion e-first retailer's bonus issue following its launch on the stock exchange on November 10, 2021.

About Nykaa

Former investment banker Falguni Nayar launched the business in 2012. Nykaa, one of the top lifestyle-focused consumer technology platforms, is run by FSN E-Commerce Ventures. Nykaa and Nykaa Fashion are the two business divisions of the corporation. These include its own manufactured brand items as well as a comprehensive range of beauty, personal care, and fashion products. Through its website and mobile applications, Nykaa provides more than 4,000 brands and more than 3.1 million product SKUs, providing a thorough Omni channel e-commerce experience.

How do Bonus Shares work?

Bonus shares are additional, fully paid shares that the firm issues to its existing shareholders. A listed company often offers free bonus shares on its existing equity shares to current shareholders. They are issued by a listed corporation as a result of free reserves, excess, and the addition of new capital. However, the investment value is unchanged after bonus issuance Bonus issues have no effect on a company's core competencies. Simply said, the price of a single share is changed to reflect the rise in the number of outstanding shares.

Eligibility

November 3 is the record date for determining the eligibility of shareholders to receive bonus shares. In order to qualify for Bonus Shares, Investors must be aware of the Ex-Bonus Date. One should buy the shares of a company's stock at least one or two days before the ex-date in order to qualify for bonus shares.

Nykaa IPO

On November 10th, 2021, shares of FSN E-Commerce were listed on stock exchanges. It was listed for Rs 2001, with a premium of 77.87% more than its Rs 1125 issue price. The Nykaa IPO received 81.78 times its initial subscription. Nykaa shares have fallen around 43% since listing, while they have been down 35% in 2022 (YTD).

Financials

FSN E-Commerce Ventures (Nykaa) had a profit increase of more than 33% in the first quarter that ended June 30, 2022, from a profit of 3.4 crores to 4.5 crores (Q1 FY23).

• Revenue from operations rose to 41% year on year (YoY) to Rs 1,148.42 crore
• Its yearly consolidated revenue rose by 40%. (YoY) from $817 billion to $1,148 billion,
• During the quarter, Nykaa's EBITDA grew 71% year over year to 46 crores,
• The EBITDA margin increased to 4% from 3.3%.
• The gross profit margin grew by 380 bps YoY between April and June.
• Gross merchandise volume (GMV) increased 47% from the same time in the previous year to 2,155.8 crores in the first quarter of FY23.

Impact on Share Price

Shares of Nykaa have fallen about 35% so far this year. At the beginning of the year i.e. on January 3, 2022, the company's shares were trading at a level of Rs 2086.25. Shares of Nykaa are trading at a level of Rs 1304 on BSE on October 3, 2022. Shares of Nykaa have lost nearly 24% in the last 6 months. The company's shares have fallen around 39% in the last one year. At the same time, the shares of Nykaa have gained 5% in the last 5 days.

Other Updates

The formulation and implementation of the Employee Stock Option Plan 2022 ('ESOP 2022') to give stock options to eligible employees of the firm were also announced at the same time. The company's shares increased by more than 11% intraday on Monday.

About

One of the fastest expanding diversified companies with a wide range of products and services is Adani Enterprises, the parent firm of the Gautam Adani Group. The firm acts as an incubator, launching new enterprises in the transportation and logistics, as well as the energy and utility sectors.

Through Adani New Industries Limited, Adani Enterprises is driving the decarbonization of industries and transportation (ANIL). The management of airports, roadways, data centers, and water infrastructure are other next-generation Adani Enterprises strategic business initiatives with a lot of potential for value unlocking.

Adani Enterprises' Share Price

On Monday, Adani Enterprises struck a 10% lower circuit. For the third day in a row, the stock declined. The stock has fallen more than 15% overall in the last week. Shares of Adani Enterprises have fallen by more than 23% from their 52-week high of 3,883.70 per share, which was recorded on September 20.

On Monday Adani Enterprises ended the day at 3,157.15 on the BSE, down by 293.85 or 8.51%. The market value of the firm is around 3,59,915.45 crore.

The Access-Controlled Six Lane (Expandable to Eight Lane) Greenfield Ganga Expressway Project (Group-II, III, and IV) in the State of Uttar Pradesh under the PPP method was financially completed, the company's wholly-owned subsidiaries stated last week. the business further raised $100 million by issuing market-linked debentures

Reasons for the decrease in Stock Prices

Higher interest rates are a straightforward solution. Inflation has begun to increase following years of loose money policies and low-interest rates. The US Fed has started a plan of gradual rate hikes. In turn, this may deflate the price of growth stocks. The impact on the businesses in the Adani group is already apparent. Growth stocks are companies that are now making large investments in order to gain rewards later. These businesses may or may not be successful right now, but they aspire to do so in the future. So growth stock value declines when interest rates rise.

For this reason, an environment of rising interest rates like the current one is more detrimental to growth stocks like Adani. Value equities are prioritized above growth stocks in such a situation. Of course, there may be further explanations for the decline in Adani stock prices.

Financial Performance

For the first quarter that concluded on June 30, 2022, Adani Enterprises Limited released its financial performance.

• Sales for the first quarter were INR 408,442.5 million, up from INR 125,787.7 million in the prior quarter.
• Revenue increased from INR 127,306.3 million to INR 410,664.3 million.
• In contrast to a year before, when net income was INR 2,714.6 million, it was INR 4,694.6 million.
• In comparison to INR 2.47 a year before, basic profits per share from continuing operations were INR 4.18.
• In comparison to INR 2.47 a year earlier, diluted earnings per share from continuing operations were INR 4.18.

Strengths

• The firm has shown solid sales growth over the last three years of 19.91%.
• The company's Cash Conversion Cycle is effective at 15.18 days.
• The corporation manages its cash flow well; its CFO/PAT ratio is 2.89.
• 72.28% of the company's shares are held by promoters.

Limitations

• Contingent liabilities for the company stand at a total of 6,957.73 Cr.
• Trading at a high PE of 411.12 for the firm.
• The company's EV/EBITDA ratio is currently 182.15 which is high.

Recent Updates

Adani Enterprises, the parent company of the Adani Group, has announced the foundation of two new subsidiaries: Alwar Alluvial Resources (AARL) and Adani Disruptive Ventures (ADVL), both of which would be wholly-owned subsidiaries.

Adani Disruptive Ventures (ADVL)

Jeet Adani, the son of Gautam Adani, the company's founder, and the vice president of group finance for the Adani Group, are the founders of ADVL. Their objective is to work with companies and entrepreneurs that want to develop solutions using disruptive technology and support them as they grow up their businesses.

Alwar Alluvial Resources (AARL)

Alwar Alluvial Resources, the other recent addition to the company, has an initial authorized and paid-up share capital of Rs 10 lakh per share.

AARL will handle the manufacture of pigments, TiO2 slag, and other incidental operations linked to these, as well as the fabrication and processing of minerals. In due course, the corporation will start conducting business.

दिवाली का त्यौहार करीब आने के साथ ही कीमती धातुओं की मांग बढ़ने लगी है और इनकी कीमतों में चमक लौट आई है। भारतीय सराफा बाज़ारो में सोने की मांग बढ़ने के बीच, सोने की आपूर्ति करने वाले बैंको द्वारा बेहतर प्रीमियम होने के चलते अधिकतर शिपमेंट चीन और टर्की को भेजे जा रहे है जिससे कीमती धातुओं के भाव बढ़ने लगे है। यह सोने के लिए दुनिया के दूसरे सबसे बड़े बाजार भारत में कमी पैदा कर सकता है, और भारतीय खरीदारों को चरम-मांग वाले सीजन में अधिक प्रीमियम का भुगतान करने के लिए बाध्य कर सकता है। अमेरिकी डॉलर इंडेक्स में लगातार दूसरे सप्ताह सुधार रहने से भी कीमती धातुओं को सपोर्ट रहा है। अमेरिकी फेड द्वारा लगातार कि जा रही ब्याज दर में वृद्धि के बीच, पिछले सप्ताह बेरोज़गारी के दावे और मैन्युफैक्चरिंग के आंकड़े कमजोर रहे है जिससे आर्थिक मंदी का डर बढ़ने लगा है। ग्लोबल सेंट्रल बैंक द्वारा लगातार ब्याज दरों में वृद्धि को लेकर वर्ल्ड बैंक ने आर्थिक मंदी आने के संकेत दिए है, जिससे कीमती धातुओं में निवेश की मांग भी बढ़ने लगी है। ग्लोबल इन्फ्लेशन में बड़ा हिस्सा रखने वाले कच्चे तेल के उत्पादन में ओपेक देशो द्वारा 2 लाख बैरल प्रति दिन की कटौती करने के कारण भाव पिछले सप्ताह 800 रूपए प्रति बैरल तक तेज़ हुए है जिससे कीमती धातुओं के भाव को सपोर्ट मिला है।

तकनीकी विश्लेषण:

इस सप्ताह सराफा बाज़ारो में कीमती धातुओं की मांग रहने के चलते भाव में तेज़ी बनी रहने की सम्भावना है। दिसम्बर वायदा सोने की कीमतों में 51300 रुपये पर सपोर्ट है और 53000 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 60000 रुपये पर सपोर्ट और 63000 रुपये पर प्रतिरोध है।

नवरात्री शुरू होने के साथ कीमती धातुओं की कीमते चमकने लगी है और एमसीएक्स में सोना पिछले सप्ताह 600 रुपये प्रति दस ग्राम तेज़ हुआ और कीमते 50300 रुपये पर रही। चांदी के भाव भी 800 रुपये प्रति किलो तेज़ हो कर 57000 रुपये के स्तरों पर पहुंच गए। अमेरिकी डॉलर में कमी आने से सोने की कीमतों में तेजी आई, लेकिन लगातार छठे महीने कीमतों में गिरावट दर्ज की गई है क्योंकि बढ़ती ब्याज दरों ने कीमती धातुओं के लिए दृष्टिकोण को गंभीर रूप से प्रभावित किया है। ग्लोबल सेंट्रल बैंक द्वारा ब्याज दरों पर आक्रामक रुख रखने के चलते कॉमेक्स वायदा में सोना सितम्बर माह में 3 प्रतिशत टुटा है जबकि रूपया डॉलर की तुलना में कमजोर रहने के काऱण घरेलु बाजार में यह 1 प्रतिशत गिरा है। अमेरिकी डॉलर इंडेक्स में उछाल, जो इस महीने की शुरुआत में 20 साल के उच्च स्तर पर पहुंच गया, ने भी सोने पर दबाव डाला है। लेकिन, पिछले सप्ताह में डॉलर 20 साल की उचाई से 1.2 प्रतिशत टूट गया जिससे कीमती धातुओं में तेज़ रही। फिर भी, कीमती धातुए, उच्च अमेरिकी ट्रेजरी यील्ड से दबाव में रही। अमेरिकी बेंचमार्क ट्रेज़री यील्ड 12 साल के उच्च स्तर के करीब पहुंच चुकी है। बढ़ती यील्ड ने इस साल गैर-उपजाऊ कीमती धातुओं को रखने की अवसर लागत में वृद्धि की है। पिछले सप्ताह यूरोज़ोन में मुद्रास्फीति 9.1 प्रतिशत से बढ़कर 10 प्रतिशत हो गई है, जिससे मुद्रास्फीति को नियंत्रित करने के लिए यूरोपियन यूनियन में भी आक्रामक ब्याज दरे बढ़ने की सम्भवना है।

तकनीकी विश्लेषण

इस सप्ताह कीमती धातुए सीमित दायरे में रहने की सम्भावना है। अक्टूबर वायदा सोने की कीमतों में 49700 रुपये पर सपोर्ट है और 50700 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 55000 रुपये पर सपोर्ट और 59000 रुपये पर प्रतिरोध है।

The decline in the Indian rupee this year has been attributed to the higher crude oil prices, the tightening policy of the US Federal Reserve, and the overall strength of the US dollar. Added to this the global uncertainty due to the geopolitical crisis caused by the war between Russia and Ukraine caused the weakening of the dollar.

US Fed Rate Hike

The US Federal Reserve (Fed) raised interest rates by 75 basis points at its last meeting and said it would raise interest rates further by 75 basis points in November and 50 basis points in December.

Stocks plunged, Asian currencies fell, and markets went risk-off following the US Federal Reserve's announcement on Sept. 21.

US bond Yields and Dollar index at multiyear highs

Yields on dollar-denominated investments rose relative to emerging markets such as India. There is speculation that a more aggressive rate hike by the US Federal Reserve could take place, which could put further pressure on India's currency.

High Demand for dollars

The Indian Rupee's value against the US Dollar works based on supply and demand. As the demand for the US dollar increases, the Indian Rupee depreciates. When a country imports more than it exports, demand for the dollar exceeds supply, causing domestic currencies such as the Indian rupee for India to depreciate against the dollar.

High Crude Oil Prices

Supply-demand imbalances and geopolitical tensions between Russia and Ukraine led to a sharp rise in oil prices in February 2022. India’s crude basket price fell 43.8% from April 2021 to February 2022.

Foreign Investors withdrawing money from the Indian market

Foreign institutional investors (FIIs) have also sold $28.4 billion worth of equities so far this year, surpassing the $11.8 billion sold during the global financial crisis in 2008, because of which more foreign capital outflow from the domestic market The rupee has fallen 5.9% against the dollar so far this year.

High Inflation Globally

The outflow of money from India will affect the rupee-dollar exchange rate and depreciate the rupee. Such a weakening would put significant pressure on the already high import prices of oil and commodities, paving the way for import inflation and higher production costs, along with higher retail inflation.

A strong US dollar measures the value against a basket of six foreign currencies.

The dollar index, which tracks currencies against a basket of major currencies, is up more than 9% this year, reaching its highest level in 20 years.

Impact on Market

The market fell for the second week in a row as the depreciation of the rupee against the dollar put pressure on the domestic market to reverse two months of positive inflows. Rate hikes by the US Federal Reserve and tightening of monetary policy by central banks around the world signaled a selloff among investors. The market started the week subdued, led by weak global markets.

Weakness in global markets finally pulled the index down over the weekend. Nifty posted his second straight day of positive closings, and his benchmark index corrected for his second week in a row, with sessions just above 17300, down 1.16% from the previous week's close.

RBI Intervention

RBI is responsible for maintaining the stability of the rupee. Whenever the rupee falls significantly, the RBI sells dollars from the forex pool to enter the market. The central bank sold $19.05 billion in the spot market in July, according to RBI data.

Another reason the rupee may come under pressure is that RBI intervention may become less aggressive, analysts say. This could help the rupee catch up with other emerging economies and protect rapidly depleting foreign exchange reserves, experts said.

The September 28-30 RBI Monetary Policy Committee meeting will be closely watched by stakeholders as the market expects repo rates to rise by 50 basis points (bps). FX reserves, down 14% from their peak, also keep the market on edge.