Adani stocks get rid of Hindenburg stain after 16 months as m-cap nears Rs 2 trillion

On January 24, 2023, a day before the release of the explosive Hindenburg report accusing Adani of brazen stock manipulation and accounting fraud scheme the Ahmedabad-based group's m-cap was around Rs 19.2 lakh crore.

Compared to pre-Hindenburg levels, Adani Power has rallied nearly 220%, while Adani Ports has also more than doubled in value.

Four other stocks - ACC, Adani Enterprises, Adani Green Energy, and Ambuja Cements - are also trading above their pre-Hindenburg levels.


During the day, Adani Power, the shares of which have nearly doubled in the last six months, was the biggest gainer as it rallied 16% to hit a fresh 52-week high of Rs 875 on BSE. Within the Nifty50 pack, Adani Ports was the top gainer with a 9% return, followed by a 7% upside in the group's flagship entity Adani Enterprises.

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Other top gainers include Adani Total Gas, Adani Energy Solutions and Adani Green - all of which were trading 7-8% higher.

In FY24, Adani Group's profit after tax (PAT) in FY24 jumped 55% to Rs 30,768 crore, while its EBITDA grew 40% year-on-year (YoY) to Rs 660 billion.

At the end of FY24, the group's net debt at the group level remained stable at Rs 2.2 trillion in FY24 vs Rs 2.3 trillion. Net debt/EBITDA improved materially to 3.3x FY24 EBITDA vs 5x YoY. Adani Ports and Adani Power saw a drop in net debt in FY24. Increase in leverage for Adani Enterprises and Adani Green was on back of new capex projects undertaken by companies, Jefferies said.

The global brokerage has buy calls on Adani Enterprises (target price Rs 3,800), Adani Ports (target price Rs 1,640) and Adani Energy Solutions (target price Rs 1,365).

Last week, CLSA had identified Adani Ports, Adani Enterprises, ACC and Ambuja Cement in its list of 54 Modi stocks. The list also includes PSUs and those belonging to several other corporates which are perceived as direct beneficiaries of PM Modi’s policies.

With effect from June 24, Adani Ports will be included in Sensex.

As the conglomerate goes back to growth mode, Adani Enterprises and Adani Energy Solutions are planning to raise Rs 16,600 crore and Rs 12,500 crore via qualified institutional placement (QIP) or other permissible modes.

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(Data: Ritesh Presswala)