Adani Enterprises Ltd., the main company of the Adani group, has reversed all of the losses it suffered as a result of the damning analysis by Hindenburg Research on January 24, 2023, thanks to a robust 13% increase in the shares over the last month. Adani Enterprises saw a 1.91 percent increase on Friday, reaching a high of Rs 3,456.25, beyond the Rs 3,442.75 mark that it closed at on January 24, 2023. Adani Enterprises also momentarily overtook its pre-Hindenburg report market capitalization (m-cap) of Rs 3,92,473.89 crore with this.
The Adani Group m-cap was reduced by $150 billion as a result of the Hindenburg Research research. It made a number of accusations, which caused the Adani group's shares to plunge, including stock manipulation and accounting irregularities at Adani group firms. Gautam Adani, the group founder, dropped out of the top 20 billionaires list after the publication. In September 2022, he was temporarily valued at $150 billion. In actuality, on February 27, 2023, Adani's personal fortune fell to a low of $37.7 billion.
A committee was later formed to look into the claims. The Supreme Court dismissed the Hindenburg report's extensive reliance on an OCCPR study and a third-party organization, ruling that such reports could not be accepted as evidence in the absence of verification. As of right now, Gautam Adani is the 13th richest person in the world with a net worth of $109 billion. According to the Bloomberg Billionaire index, Mukesh Ambani is worth $114 billion, therefore it is a few billions behind him.
The Adani business was also in the spotlight lately when it was claimed in a credible source piece that the group imported low-quality coal in 2013 and then sold it to state-owned companies at a premium price.
"FT article is just noise from a long time ago," Cantor Fitzgerald stated in reference to the piece that set a share price objective of Rs 4,338 for Adani Enterprises. According to Cantor Fitzgerald, "we believe the market is inferring that this is an immaterial story, as do we," and the market seemed to brush off this information.
From a top-down perspective, India is among the fastest-growing countries and is making significant investments in a variety of end-markets to support this growth. Cantor Fitzgerald stated that this is positive for Adani Enterprises since it affects almost every element of Indian life.
From a bottoms-up perspective, we think Adani's valuation isn't accurate enough to capture the value of its present portfolio of mature and developing companies. We think this will lead to shares more correctly representing Adani's sum-of-the-parts valuation as these businesses develop and mature and as the demerging of businesses inside Adani approaches," Cantor Fitzgerald stated. In the last year, shares of Adani Enterprises have increased by 38%.
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