Adani m-cap up 120% from post-Hindenburg low

Adani m-cap up 120% from post-Hindenburg low

Adani Group stocks got a shot in the arm on Wednesday, thanks to the Supreme Court’s favourable verdict on Hindenburg’s allegations. The group’s market cap rose by 11% or Rs 64 189 crore. The overall market capitalisation of the group stood at Rs 15.1 trillion, showing a recovery of Rs 8.3 trillion from the lowest level of February 27.

However, it is still some distance away from the pre-Hindenburg level. On January 23, 2023 — one day prior to Hindenburg report — the group m-cap was Rs 19.2 trillion ($236.5 billion).

“I don’t think anybody is worried about Hindenburg anymore,” Bloomberg quoted Abhay Agarwal, founder and portfolio manager at Piper Serica Advisors, as saying. “I think people who were playing for this event could be looking to take some profit.”

Agarwal added that the focus of investors would now be on earnings and valuations of individual group companies. Last year, the Hindenburg report triggered a meltdown in the conglomerate, leading to a Rs 9.4-trillion ($117.9-billion) rout in the combined market value in nine sessions following the release of the report.

It then slumped to a post-Hindenburg low of Rs 6.8 trillion ($82.3 billion) on 27 February — a slide of Rs 12.4 trillion ($154 billion), or 65% of the pre-Hindenburg level.

However, the group received a lifeline after asset management firm GQG Partners invested in Adani entities. The group m-cap surged above $100 billion (Rs 8.5 trillion) on 3 March.

In December 2022, the group m-cap was upwards of Rs 20 trillion.