1.7 lakh crore boom in 2 days! Adani Group stocks market cap crosses Rs 15 lakh crore

The combined market capitalisation of all 10 Adani Group stocks has jumped by Rs 1.7 lakh crore in just two trading sessions to cross the Rs 15 lakh crore mark on Monday after markets regulator Sebi gave a clean chit to billionaire Gautam Adani in the Hindenburg case.

In the last two trading sessions, Adani Power shares have seen the highest jump of 35% as Sebi's dismissal of market manipulation allegation came just during its 1:5 stock split and a bullish note from Morgan Stanley, which initiated coverage on the stock with an overweight call.

As Adani Power shares started trading ex-bonus, the stock was locked in a 20% upper circuit during the day. Adani Total Gas was the second biggest gainer and was up 19% today, taking the total 2-day gain to about 27%.


Shares of Adani Green Energy and Adani Energy Solutions have also jumped about 12%.
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Sebi's clean chit has cleared a big regulatory overhang on the conglomerate, which has been hit hard by the American short-seller's allegation of corporate fraud and stock manipulation since January 2023.

Last week, Emerging markets investment guru Chris Wood of Jefferies announced that he has sold off shares of Reliance Industries (RIL) to buy Adani Group-owned Ambuja Cement shares in his India long-only portfolio.

Besides Ambuja, Wood already owns Adani Ports in the long-only portfolio.

For Adani Power, the biggest trigger came from Morgan Stanley, which last week initiated coverage with an Overweight rating and a price target of Rs 818 per share. The brokerage highlighted Adani Power as India’s largest private coal-based independent power producer with 18.15 GW of operational capacity. It projected the company’s portfolio to nearly 2.5x to 41.9 GW by FY32, lifting its market share in coal-based capacity from 8% in FY25 to 15% by FY32.

"APL is a good illustration of turnaround in India's corporate history, with resolution on most regulatory issues & multiple value-accretive acquisitions. APL will deliver strong earnings growth driven by the timely completion of projects & more PPA wins in the medium term," it said.

Jefferies also jumped back in, targeting Adani Green with a Rs 1,300 price target, noting that "Valuations are at a 63% discount to their Jan. 2023 peak 1-yr forward EV/EBITDA, which creates room for upside on execution."

"Now henceforth, it will be business as usual for Adani stocks as all the negative newsflow around Hindenburg won't be there. The focus will shift to fundamentals," said Sunny Agarwal of SBI Securities.

Agarwal identified Adani Ports, Ambuja and ACC as preferred bets, calling them "good cash flow generating businesses," while highlighting potential value unlocking in Adani Enterprises through its real estate and airport businesses.

Hindenburg's January 2023 report had accused the Adani Group of "accounting fraud" and "stock manipulation," triggering a catastrophic market crash that wiped out over $100 billion in market value at its peak. The allegations didn't just damage the conglomerate's finances – they sparked investigations by Sebi and ignited a broader national debate about corporate governance standards among Indian business houses.

The controversy even touched the highest levels of market regulation, with questions raised about the then Sebi chief Madhabi Puri Buch's alleged connections to the case, adding political dimensions to what began as a short-seller attack.