In its January 24 note, short seller Hindenburg Research said seven of Adani Group key listed companies have 85 per cent downside potential purely on a fundamental basis, owing to sky-high valuations. That, it said, was after ignoring the ‘findings’ of its investigation.
As it is turning out, Adani group stocks have eroded up to 80 per cent of market value from their one-year high levels, with group founder and Chairman Gautam Adani on the verge of losing $100 billion in notional wealth.
While commentary from the Adani group, prepayment of its loans and healthy earnings by a few group companies managed to put a halt on fall in a few Adani group names, bearish sentiment on a few other group stocks such as Adani Total Gas and Adani Green Energy continued till date.
Wednesday was the 17th day of consecutive fall for Adani Total Gas. The scrip hit a 52-week high of Rs 3,998.35 on January 23. Hindenburg report came on January 24, and since then the scrip has been falling continuously. Taking Wednesday’s level of Rs 1,078.85 into account, the stock has lost 73 per cent of its market value in roughly three weeks.
Only once in this period did Adani Green Energy shares end higher. Like Adani Total Gas, this stock hit its 5 per cent lower circuit limit on Wednesday and a new 52-week low of Rs 620.75. This stock is down 79.63 per cent from its 52-week high level.
Adani Power also managed to close in the positive territory just once on February 8. The stock is down 67.44 per cent from its 52-week high of Rs 432.80.
Adani Transmission has only twice managed to close in the black since January 24. The scrip has lost 76 per cent of its value from its 52-week high level.
If one includes Wednesday, Adani Wilmar has managed to closed higher in only five trading sessions. This scrip is down 56 per cent from its 52-week high of Rs 878.35. Adani Enterprises and Adani Ports & SEZ performed well during this period. Still, Adani Enterprises is down 58 per cent from its 52-week high of Rs 4,189.55. Adani Ports is down 43 per cent over its 52-week high levels.
Adani, 60, is now the 24 richest in the Bloomberg Billionaire list at $51.5 billion. He was worth $150 billion in September last year.
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