The ongoing financial year stood highly tumultuous for the Adani group of companies as the combined market capitalisation (m-cap) of seven-listed firms namely Adani Enterprises, Adani Green Energy, Adani Ports and Special Economic Zone, Adani Power, Adani Total Gas, Adani Transmission and Adani Wilmar tanked by more than Rs 4.50 lakh crore to Rs 8.63 lakh crore on March 23, 2023, from Rs 13.20 lakh crore on March 31 last year.
With a fall of 54 per cent, each, Adani Transmission and Adani Total Gas plunged the most in the ongoing financial year. It was followed by Adani Green Energy (down 49 per cent), Adani Wilmar (down 19 per cent), Adani Ports and Special Economic Zone (down 15 per cent) and Adani Enterprises (down 11 per cent).
However, Adani Power emerged as the only gainer among the seven listed stocks. Shares of the company gained 9 per cent to Rs 201.20 on March 23, 2023 from Rs 185.05 on March 31 last year.
Meanwhile, Adani Enterprises scaled its all-time high of Rs 4,189.55 on December 21, 2022, and Adani Green Energy hit an all-time high of Rs 3,048 on April 19, 2022. Adani Ports and Special Economic Zone and Adani Power touched their respective all-time highs of Rs 987.90 and Rs 432.80 on September 20, 2022, and August 22, 2022, respectively. Adani Total Gas scaled a lifetime high of Rs 3998.35 on January 2023. Adani Transmission and Adani Wilmar also touched their all-time high levels of Rs 4,238.55 and Rs 878.35 on September 16, 2022, and April 28, 2022, respectively.
Of late, a report by Hindenburg Research, which is led by Nathan Anderson, triggered a selloff in Gautam Adani’s group shares, two months ago, after it made several allegations including stock manipulation and accounting fraud at Adani group companies. However, the Adani group denied all allegations.
While sharing his views on Adani stocks, Abhishek Agarwal, Managing Partner, Rockstud Capital earlier in March said, “I think there is an overreaction on Adani group companies after the Hindenburg report. Adani’s success is not overnight. Leverage in debt or dilution of equity are the tools for funding the growth of the business. No default history, no corporate governance red flag from Sebi or similar governing agencies, and no real evidence to many claims of the report. Certainly, the report has caused massive financial and reputation damage to their stock and bonds.”
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