Billionaire Gautam Adani’s ports-to-power conglomerate is “deeply overleveraged,” with the group investing aggressively across  businesses.

The aggressive expansion pursued by the Adani Group, led by Asia's richest person, has put pressure on its credit metrics and cash flow.

CreditSights said in the report Tuesday, adding that "in the worst-case scenario" it may spiral into a debt trap and possibly a default.

A representative for the Adani Group didn't immediately respond to a request for comment on the report. All seven listed Adani firms declined by 2% to 7% in trading Tuesday.

These moves have not only boosted Adani's stature in India, but his fortune, with his net worth surging past $135 billion this year.

He's also increasingly moving into spheres dominated by the man he replaced as Asia's richest man, compatriot Mukesh Ambani of Reliance Industries Ltd.

Potential strong competition between the group and Ambani's Reliance to achieve market dominance could lead to "imprudent financial decisions".