New Delhi: Following an initial knee-jerk reaction in the wake of reports by OCCRP, Financial Times, and The Guardian, the market capitalization of all listed firms owned by the Adani Group has recovered to over Rs 11 lakh crore.
The four top group stocks—Adani Green Energy, Adani Power, Adani Ports, and Adani Enterprises—are driving the rally, which has grown the group’s market capitalization by 40% over the last three months. All four companies’ stock prices have more than doubled since their lows.
Adani Ports is the company in the group that analysts follow the most closely, and out of all the companies in the group, institutional investors possess the most of it. Analysts and investors have continued to be bullish on the stock in spite of the allegations, particularly those made by its departing auditors.
“It is a sign that the market is ignoring all the incremental allegations and that the existing pricing takes into account all the drawbacks. The worst may very well be over for the business and its investors, according to experts.
The group stocks have had such a remarkable performance, according to market specialists who constantly monitor the group, for two key reasons.
The group has proven that the noise does not have an impact on its operations. The listed companies in the group’s portfolio had a strong performance in the first quarter following the short-seller report, which fell in the June quarter of FY24. Each business experienced strong growth.
All the listed companies’ aggregate EBITDA climbed 42% year over year. While this was happening, its balance sheet got stronger. The cash balance is as high as Rs 42,500 crore, and the ratio of net debt to EBITDA is currently about three.
Adani Power and Adani Ports, two of the oldest group firms to demerge from the incubator AEL, remain at pre-Hindenburg levels despite the flagship company AEL’s shares having had the greatest increase from its lows (up to 150%).
The fact that Adani Enterprises’ promoters purchased shares in August for Rs 6,000 crore demonstrates their confidence in the group’s commercial endeavours.
The group and its businesses have received unwavering support from all financial institutions, including equity as well as debt investors and rating agencies, both domestic and abroad.