00:00the adani group is back in the spotlight this time with a major vote of confidence from one
00:18of the world's top financial institutions bank of america has started credit coverage on adani
00:24group companies giving overweight ratings on key bonds including adscz 31s and 32s adinco 31s adtin 36
00:35and adanem 30s in simple terms this means bank of america believes these adani bonds are worth buying
00:42and are likely to perform better than the broader market bank of america notes five key takeaways
00:48the adani group's access to funding remains strong both in india and globally its ongoing bond buyback
00:55show financial maturity markets still price in a governance premium meaning there's room for
01:01revaluation cash flows remain robust supporting expansion and debt reduction regulatory frameworks
01:07offer good protection and refinancing visibility this move is significant because it comes after
01:13a turbulent two years following the 2023 short seller report and the 2024 u.s department of
01:19justice indictment despite all that the adani group has shown strong fundamentals steady operations and
01:25stable access to funding in fact there have been no credit downgrades in three years which shows
01:31confidence in the group's management and financial discipline let's look at the numbers
01:36in the financial year 2025 the adani group's ebitda that's earnings before interest taxes depreciation and
01:46amortization hit around 898 billion rupees or about 10.5 billion u.s dollars over 80 percent of this
01:55came from its core infrastructure businesses ports power and energy here's a quick look at individual
02:01businesses adani ports india's biggest private port operator fy25 ebitda up 14 to 184 billion rupees
02:10leverage down to 2.4 times and capital spending set to double adani international container terminal
02:17a joint venture with msc boasting a 54 profit margin and expected leverage of just one time by fy 28
02:26adani transmission india's leading private transmission and distribution utility with state regulatory
02:32returns adani electricity mumbai distributes power in mumbai backed by qia with a 25 percent stake
02:39returns remain healthy at 15 to 17 percent adani green joint venture with total energies focused on
02:47renewable energy with secure long-term counterparties the company has also reduced its debt burden sharply
02:54its net debt to ebitda ratio has improved to 2.6 times down from 3.8 times in 2019 this means the group
03:02now earns more compared to what it owes to strengthen its finances adani raised over six billion dollars
03:09through refinancing and equity infusions india's market regulator sebi cleared 22 out of 24 probes with
03:15no adverse findings while credit rating agencies like fitch and snp have revised their outlooks to stable or
03:23positive adani also bought back over 400 million dollars worth of bonds helping tighten spreads and improve its debt
03:30maturity profile adani bonds are still trading cheaper than other asian investment grade peers
03:36even though adani's balance sheet is stronger this suggests there's room for bond prices to rise
03:42with a potential 20 to 40 basis points tightening upside
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