5 months of Hindenburg report: How Adani group stocks fared since January 24

Adani group stocks may have recovered smartly since Hindenburg Research's scathing January report, they are still trading up to 84 per cent below their January levels. Data showed the group's market capitalisation (m-cap) recovered from a low of sub-Rs 7 lakh crore on February 27 and is still flirting with Rs 10 lakh crore mark since. This is far from the pre-Hindenburg Research period m-cap level of Rs 19.20 lakh crore.

The group founder and chairman, Gautam Adani, stayed out of the world's top 20 billionaire list at $58.3 billion, as the group m-cap dropped 49 per cent to Rs 9.79 lakh crore in the five-month period.

To recall, a Supreme Court appointed-panel found no regulatory failure around price manipulation in the conglomerate's stocks and violation of minimum public shareholding rules, as suggested by Hindenburg in its research report.

The panel report noted: "The committee is of the view that it would not be possible to return a finding of a regulatory failure in relation to compliance with the regulatory stipulations governing minimum public shareholding stipulation..."

That said, a Bloomberg report this week suggested that the US authorities have been looking into representations that Adani Group made to American investors following Hindenburg Research's scathing report.  In January, the short seller had accused the group of using offshore companies to manipulate its share prices. Hindenburg Research also accused the group companies of accounting fraud.

Shares of Adani Total Gas Ltd are down 83.68 per cent since January 24. Adani Transmission Ltd is down 73 per cent, Adani Total Green Ltd 50 per cent, Adani Enterprises Ltd 35 per cent and Adani Wilmar Ltd 30 per cent. Shares of Adani Ports & SEZ Ltd are least impact, down mere 6 per cent from January 24 levels. Adani Power and  Ambuja Cements (down 11-14 per cent) are other least impacted group shares since.

Since January report, the group took several steps, including selling stake to strategic investors in group companies and prepaying loans to allay investor concerns. It also projected Rs 90,000 crore in group level Ebitda in the next two years.

The Adani group recently said there is no significant debt maturity looming in the near-term, indicating no material refinancing risk or near-term liquidity requirement. It noted that net asset value of gross assets stands at Rs 3,91,000 crore. Over time, the group has diversified its long-term debt portfolio and reduced its exposure to banks while expanding its funding sources, the group said.

Also read: Hot stocks on June 26, 2023: Rolex Rings, Adani Enterprises, Yes Bank, ITC and more

Also read: Adani Enterprises, Adani Power, Adani Transmission: Why are Adani group shares rising today?