The article provides a comparison of the debt profiles of India’s two biggest conglomerates, the Tata Group and the Adani Group. The study analyzed 17 companies from the Tata Group and 7 companies from the Adani Group, comparing their debt, market cap, sales growth, and other financial metrics.
Debt Comparison:
- The Tata Group has slightly higher total debt due to a larger number of companies, with 20 (66.7%) of its companies having debt, compared to 6 (85.7%) of the Adani Group.
- The Adani Group has a higher percentage of companies with debt exceeding Rs 30,000 crore (5 out of 7) compared to the Tata Group (2 out of 17).
- The Adani Group has increased its debt level by 48% over the last four years, while the Tata Group has reduced its group debt by 8.5%.
Sales Growth:
- The Adani Group has achieved an average CAGR of 22.6%, while the Tata Group has an average CAGR of 16.4%.
- Tejas Networks from the Tata Group has shown the highest sales growth (54%) over the last four years.
- The median and mean sales growth rates for the Adani Group are approximately 22%, while the Tata Group shows a variation, with an average sales growth of 16% and a median CAGR of 12%.
Market Cap:
- The Adani Group has a market cap of 40% that of the Tata Group.
- The average market cap of the Tata Group and the Adani Group is almost the same.
In conclusion, while both groups have their strengths and weaknesses, the Adani Group has more companies with high debt levels and a higher percentage of companies with debt exceeding Rs 30,000 crore. The Tata Group has shown a higher level of debt reduction over the last four years, while the Adani Group has increased its debt level by 48%.