In 2022, some stocks of companies from large conglomerates outperformed analyst expectations and generated multi-bagger returns, while others let investors down. Here's how Adani, Tata Group and Reliance Industries' stocks performed:
2022 in Review | Ambani vs Adani: Whose stocks have rewarded investors most this year?
The Adani Group is the third largest conglomerate in India, after Reliance Industries and the Tata Group. The group's diverse businesses include port management, electric power generation and transmission, renewable energy, mining, airport operations, natural gas, food processing, and infrastructure.
In 2022, a total of seven Adani stocks produced positive returns, with two gaining more than 100.
With gains of around 163 percent so far in 2022, Adani Power shares have outperformed all other Adani Group stocks. The stock began rising in February at Rs. 111.15 per share and has now reached Rs. 262.20, representing a 135 percent return.
Adani Enterprises stock stands at the second spot with a gain of over 113 percent, climbing from ₹1,709 apiece to ₹3,642. Recently, on December 21, the stock hit an all-time high of ₹4,190.
Further, the stock of Adani Total Gas has climbed from ₹1,721.80 to ₹3232.60, generating a return of over 87.74 percent in the current year so far.
Adani Wilmar, which was recently listed in February this year, has gained 86.25 percent. The stock reached an all-time high of ₹841.70 per share in September.
Adani Transmission shares have risen 30 percent to ₹2,270.20 this year. The stock gained 582.97 percent in three years, while Adani Green Energy, Adani Ports and Special Economic Zone rose 35.99 percent and 8.74 percent, respectively, in the current year so far.
On September 21, Hurun India and IIFL Wealth released the IIFL Wealth Hurun India Rich List for 2022. As per the list, Adani topped the list of richest Indians with a net-worth of ₹10,94,400 crore. Adani's wealth more than doubled in the last year, adding Rs. 5,88,500 crore.
For the first time in ten years, Mukesh Ambani lost the top ranking despite his wealth increasing by 11 percent in an eventful year that saw many headwinds, including the Russia-Ukraine war, according to the report.
Adani has expanded his empire aggressively in recent years by diversifying his business into multiple sectors. In May, he entered the cement sector by winning the race to acquire Swiss cement major Holcim's stake in Ambuja Cements and its subsidiary ACC for $10.5 billion (around ₹81,361 crore).
In August, the Adani Group also announced plans to set up a 4.1 million tonnes per annum integrated alumina refinery and a 30 million tonnes iron ore beneficiation plant in Odisha that could cost over ₹58,000 crore.
Tata Group stocks
The Tata Group – a conglomerate that has businesses across industries including steel, chemicals, automobile, retail, jewellery and telecom – is a global enterprise, headquartered in India, comprising 30 companies. Tata Sons is the principal investment holding company and promoter of Tata companies.
Each Tata company or enterprise operates independently under the guidance and supervision of its board of directors. The combined market cap of Tata Group companies was $311 billion ( ₹23.6 trillion) as of March 31, its website shows.
Tata Group announced major deals in 2022 as part of its strategy to reduce the number of companies in its portfolio. In March this year, Tata Consumer Products (TCPL) announced the merger of all businesses of Tata Coffee with itself.
On November 29, Tata Group announced the merger of Vistara with Air India under a deal wherein Singapore Airlines will also acquire a 25.1 percent stake in Air India, marking a major consolidation in India's fast-growing aviation space.
The deal, which will make Air India the country's largest international carrier and second-largest domestic carrier, is expected to be completed by March 2024, subject to regulatory approvals, PTI reported.
Earlier in September, Tata Consumer Products entered the health supplements segment with the launch of a plant-based protein powder.
On the other hand, the Tata Steel Board of Directors considered and approved schemes for the proposed amalgamation of six subsidiaries into and with Tata Steel, the company said in a statement.
Meanwhile, the majority of the company stocks in the Tata group had a lackluster year in 2022.
Shares of Indian Hotels Company rallied more than 60 percent this year and stood as the top gainer among Tata Group stocks. The stock has picked up steam since the start of the year, rising nearly 65.69 percent year-to-date (YTD) against a 2.60 percent rise in the benchmark Nifty during the same period.
Similarly, shares of Trent, the retail arm of Tata Group, delivered a 20.56 percent return in the current calendar year so far. Over the last three-year period, the stock zoomed 147 percent, and it generated a return of 286 percent over the last five years.
Other stocks, including Tinplate Company of India, Tata Investment Corporation, and Tata Consumer Products have seen gains in the range of 8–42 percent.
The shares of Tata Teleservices (Maharashtra) stand as the biggest laggards among Tata Group stocks in 2022 with a fall of nearly 60 percent, followed by Voltas, Tata Motors, Tata Communications, Tata Metaliks, TCS, and Nelco, with a fall of over 13 percent to over 30 percent.
In addition, Tata Elxsi, Tata Chemicals, and Titan Company delivered almost single digit returns in 2022.
Aditya Birla Group
Aditya Birla Group has grown into a global powerhouse in a wide range of sectors – metals, pulp and fibre, chemicals, textiles, carbon black, telecom, cement, financial services, fashion retail, and renewable energy.
Stocks from the Birla Group have disappointed shareholders in 2022. The sell-off has resulted in market cap losses for the majority of the group companies this year.
Most of the losses have come from Vodafone Idea, which has lost 50 percent of its value in 2022 so far. Other stocks such as Hindalco and Ultratech Cement, have witnessed losses of 9 percent and 8 percent, respectively.
Shares of Aditya Birla Capital, Grasim Industries, and Aditya Birla Fashion and Retail have delivered returns of 15.69 percent, 5.34 percent, and 4.90 percent, respectively.
Reliance has four business verticals: O2C, which includes its oil refineries, petrochemical plants, and fuel retailing business; retail, which includes brick-and-mortar stores and e-commerce; digital services, which includes telecom arm Jio; and new energy.
Reliance Industries is one of the most profitable companies in India and the largest publicly traded company by market capitalisation.
Reliance Industries is the first Indian company to cross $100 billion in revenue. So far in 2022, the stock has delivered only a marginal return of 5.65 percent, rallying from ₹2,368 apiece to ₹2502.20. The stock hit an all-time high of ₹2,856 in April.
The group's other stocks, meanwhile, have so far experienced losses for the year.
Mukesh Ambani has big goals for his empire; he has expanded his business into a number of different industries through acquisitions, and this year, he also introduced FMCG brand.
Reliance Consumer Products Ltd (RCPL), the newly set up FMCG arm of Reliance Retail Ventures Ltd (RRVL), in the second week of December made a foray into staples with the launch of brand ‘Independence’, in line with the announcement Ambani had made at the company's annual shareholder meeting earlier this year.
On the other hand, Reliance Industries Ltd. agreed to buy Metro AG’s Indian unit for 28.5 Indian billion rupees ($344 million), according to media reports.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
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