The Adani Group’s port unit was the first of its ten units to recoup all the losses it inflicted Hindenburg research‘s bombshell report in late January, as the recent rally in the conglomerate’s shares gained momentum on Tuesday.
All 10 Adani shares were up in early Mumbai trade, with shares from Adani ports and Special Economic Zone Ltd even rose by 7.7%. The flagship Adani Enterprises Ltd. rose nearly 19% after a similar surge on Monday. The catalyst for the rally since last Friday was the report by the Supreme Court-appointed panel that found no conclusive evidence of stock price manipulation alleged by US short seller Hindenburg.
The combined market value of 10 Adani shares is up about $22 billion since the close on Thursday. The loss in value since Hindenburg’s report now amounts to around US$105 billion, in the worst case it was even US$153 billion.
The port business is home to some of billionaire Gautam Adani’s most lucrative assets and is being touted by market watchers as the group’s crown jewel. It’s also the Adani stock most closely watched by sell-side analysts. Currently, all 20 analysts covering the stock have a buy rating, data compiled by Bloomberg shows.
“Adani Ports business fundamentals remain solid,” said Deven Choksey, Managing Director of KRChoksey Shares & Securities Private in Mumbai. “Its strong cash-generating ability means it will be a top priority for investors,” he said, adding that the stock is still underheld by domestic institutional investors, who are generally cash-generating companies prefer.
In a 173-page report released last week, the judicial panel said so based on data from the Markets Inspectorate Securities and Exchange Board of Indiaor SEBI, saw “no apparent pattern of manipulation” in the soaring share prices in Adani’s companies that could be attributed to “an individual company or a group of related companies”.
This related to a key Hindenburg allegation that offshore letterbox companies linked to the Adani family were inflating the empire’s shares. However, the investigation is still ongoing and the court has given the regulator until August 14 to complete its investigation.
All 10 Adani shares were up in early Mumbai trade, with shares from Adani ports and Special Economic Zone Ltd even rose by 7.7%. The flagship Adani Enterprises Ltd. rose nearly 19% after a similar surge on Monday. The catalyst for the rally since last Friday was the report by the Supreme Court-appointed panel that found no conclusive evidence of stock price manipulation alleged by US short seller Hindenburg.
The combined market value of 10 Adani shares is up about $22 billion since the close on Thursday. The loss in value since Hindenburg’s report now amounts to around US$105 billion, in the worst case it was even US$153 billion.
The port business is home to some of billionaire Gautam Adani’s most lucrative assets and is being touted by market watchers as the group’s crown jewel. It’s also the Adani stock most closely watched by sell-side analysts. Currently, all 20 analysts covering the stock have a buy rating, data compiled by Bloomberg shows.
“Adani Ports business fundamentals remain solid,” said Deven Choksey, Managing Director of KRChoksey Shares & Securities Private in Mumbai. “Its strong cash-generating ability means it will be a top priority for investors,” he said, adding that the stock is still underheld by domestic institutional investors, who are generally cash-generating companies prefer.
In a 173-page report released last week, the judicial panel said so based on data from the Markets Inspectorate Securities and Exchange Board of Indiaor SEBI, saw “no apparent pattern of manipulation” in the soaring share prices in Adani’s companies that could be attributed to “an individual company or a group of related companies”.
This related to a key Hindenburg allegation that offshore letterbox companies linked to the Adani family were inflating the empire’s shares. However, the investigation is still ongoing and the court has given the regulator until August 14 to complete its investigation.
