Adani Group stocks are thriving a year after Hindenburg report

January 04, 2024 06:04 PM PST | By Invezz

Adani Group stocks are thriving a year after Hindenburg report — Image source: Invezz

Adani Group stocks surge

Other Adani stocks have also recovered swiftly recently. Adani Ports stock price jumped to a record high of ₹1,150, up by 191% from last year’s low. Similarly, Adani Power shares soared to ₹560 while Adani Green Energy soared to ₹1,740, its highest level since January 23rd last year.

Adani Group stock charts

This performance has been a good thing for Gautam Adani, who has retaken the crown as the richest person in Asia. According to the Bloomberg Billionaire Index, his net worth jumped by more than $7.6 billion on Thursday, reaching over $97 billion.

He has added $13.3 billion to his net worth this year, much higher than Mukesh Ambani who has gained by $665 million. Ambani is now worth $96 billion.

To a large extent, Gautam Adani has won the long-running battle with Hindenburg Research, who published a skating attack on the conglomerate in 2023. In his long report, the American short-seller warned that Adani was manipulating the stock using foreign investors to pump it.

In the aftermath, several foreign companies like TotalEnergies terminated dealings with Adani’s conglomerates. At the same time, Indian regulators moved in and started looking at the business well.

Reprieve for Gautam Adani

This week, an Indian court gave a reprieve to Adani Group by ordering regulators to conclude the probes within three months. The court also said that no more investigation was needed to the conglomerate. Analysts now believe that regulators have not found any meaningful illegalities in the company’s performance.

Meanwhile, Adani Group has also worked to reduce its debt load and reduce its acquisition streak. It also received investments from Rajiv Jain, who pumped $2 billion in the conglomerate.

Adani has been one of the most acquisitive groups in corporate India as Gautam diversified his holdings to areas like data centers and AI.

Adani Enterprises is set to benefit from the rapid growth of the Indian economy. The Reserve Bank of India (RBI) expects the economy to grow by 7% in the current fiscal year. Several global banks like Citigroup and Barclays upgraded their outlook for the economy recently.

The economy is doing well, helped by strong consumer and government spending. In this case. Adani Group will likely benefit because it is a key part of key sectors of the economy like infrastructure, energy, retail, and IT.

The post Adani Group stocks are thriving a year after Hindenburg report appeared first on Invezz

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