Adani Enterprises, Adani Ports shares recover up to 75% after Hindenburg-led crash; what lies ahead?

Shares of Adani Group companies have recovered up to 75 per cent from their recent lows after a scathing report on the conglomerate by US short seller Hindenburg Research. All the 10 publicly-listed Adani stocks have declined up to 75 per cent after the report got released on January 24.

Hindenburg Research, in its report, had made several allegations relating to the conglomerate's offshore entities and had raised several questions on its operations.

Data available from ACE Equity showed that Adani Ports and Special Economic Zone, and Adani Enterprises have gained 44.1 per cent and 74.9 per cent, respectively, in the past 8 trading sessions till February 15. Earlier, shares of the group’s flagship firm Adani Enterprises plunged to an intra-day low of Rs 1,017.10 on February 3 from Rs 3,442.75 on January 24, 2023. Likewise, Adani Ports shares plummeted to Rs 394.95 on February 3 from Rs 760.85 on January 24.

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Adani Group's recently acquired cement majors like ACC and Ambuja Cements also witnessed a steep fall since January 24, 2023. On February 15, 2023, ACC was up 9.2 per cent from its low of Rs 1,696.05 on February 3. Shares of the company traded at Rs 2,336.2 on January 24, 2023. Ambuja Cements also recovered 9.3 per cent so far from the low of 315.30, hit on February 2. Shares of the company were trading at Rs 498.55 on January 24, 2023.  

Other major Adani Group of companies, Adani Wilmar and New Delhi Television (NDTV), have also recovered 4.4 per cent and 4.7 per cent against their respective lows they hit after the Hindenburg Research report. However, Adani Wilmar and NDTV are still down 33.6 per cent and 33.7 per cent since January 24.  

In contrast, Adani Power, Adani Total Gas, Adani Transmission and Adani Green Energy have not shown any sign of recovery so far. Adani Total Gas stock tanked to Rs 1,078.85 on February 15 from Rs 3,885.45 on January 24, indicating an erosion of 72.2 per cent in the past 15 trading sessions.  

It was followed by Adani Green Energy, which plunged 67.6 per cent to Rs 620.75, as on February 15 from Rs 1,913.55 on January 24 last month. Adani Transmission and Adani Power crashed 63.1 per cent and 48.7 per cent, respectively, since January 24.  

Sharing his views on the Adani Group of stocks, independent market analyst Ambareesh Baliga said, “I don’t think anyone is questioning the business of the Adani Group. Once the issue gets sorted out they will come back on track but it will take a while. Most of the stocks are still quite expensive,” he said adding Adani Wilmar and Adani Ports look attractive to him at present.