AEL, Vedanta feature in Nifty 100 Top 5 Losers 2023 list

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Market expert, Ravi Singh has said that retail investors’ favourite stocks like Adani Enterprises and Vedanta are among the two large cap stocks of the Nifty 100 that have fallen the most in the year 2023. Yes, these two juggernauts are among the top 5 losers for Nifty 100 in the current calendar year.

According to Singh, at the end of 2022, the total market value of all 10 listed Adani companies was Rs 19.6 lakh crore which has now fallen down to Rs 13.6 lakh crore. This was all because of Hidenberg report controversy. It led to the Adani’s flagship company Adani Enterprises to lost around 25% of its value this year.

While, Singh has said that India’s top agro-chemical producer UPL Ltd, had reported weak earnings growth in most of the quarters this year. The company was hurt by weak demand, channel destocking and competition from China. UPL, which has presence in more than 130 countries, its revenue fell in all the regions it serves.

On the other hand, Singh said that Vedanta’s parent company Vedanta Resources Ltd faces repayment of notes worth nearly $2 billion in the financial year 2025. If we include these bonds, the company would face debt repayment worth $3.6 billion in the next financial year. Also, Moody’s Investors Service downgraded the Corporate Family Rating (CFR) of Vedanta Resources Ltd over elevated risks of debt restructuring combined with no proper guidance on the refinancing of its upcoming debt. The stock is amongst the worst performers in the current calendar year.

Singh further said that the lackluster rural demand which has nearly half of the portion of Dabur’s total domestic sales, has resulted into poor earnings growth in past quarters. Also, reports of recent lawsuits against its US subsidiaries has not gone well with the investors confidence pushing the stock to its lower levels.

Singh further added that SBI cards also features in the Top 5 list of losers of 2023. The credit card company is impacted as the RBI tightened norms for personal loans and credit cards to control the extreme growth in the segment.