Why I do Not Invest in ADANI Group?

ADANI Group has been the talk of the town as Gautam Adani became the 4th Richest person in the world this year and all of his Companies are doing just freaking fantastic. But even though almost all ADANI Stocks have given massive returns I have never bought a Single Share of ADANI Group and I will list my reasons as to why I do not like to Invest here.

ABSURD VALUATIONS

Almost all of the ADANI Stocks have some Absurd Valuations like Adani Enterprise with a PE of over 300, Adani Green Energy at around 800 PE, and Adani Total Gas at around 500 PE, and you can see that the valuations that are given to these companies are just absurd and makes no sense at all. Personally, I am not interested in buying such Stocks that are trading at such Abusrd Valuations.

DEBT/HIGH LEVERAGE

Debt to Equity Ratio is something that I always look into while I am researching a certain Stock and I like my Stocks to have low to minimum debt on their Balance Sheets. But in the case of ADANI Stocks, most of the Companies have taken massive Loans for expansion and in some companies, the Debt to Equity Ratio is over 20 while I consider stocks that are below 0.3 Debt to Equity as good Stocks. So yeah this High Leverage and Debt n the Company doesn't suit my Appetite.

POLITICAL RELATIONS

We all know that Gautam Adani has very good ties with the current Ruling Party of India and that has indeed helped them grow massively in a short amount of time but this is something that can serve as a Double-Edged Sword as people will obviously wonder what will happen once the Riling Party Changes, will ADANI have the same level of Groth or will it collapse completely under the huge debt they have taken. This is something that always eats my mind and that is why I am not investing in ADANI Stocks at all.

Anyways this is definitely my personal opinion but if you are someone who is invested in ADANI Stocks then please do write as to why you invested in that Stock and what are your hopes for the STock PErformance. As usual, this is not any Financial Advice as I am just another normal guy writing about my Stocks Portfolio Journey.