Adani Enterprises shares: Thanks to a robust 12 percent surge in Adani Enterprises Ltd shares over the past month, the flagship company of the Adani group has completely recovered from the losses incurred following the critical report by Hindenburg Research on January 24, 2023. On Friday, Adani Enterprises rose by 1.91 percent, reaching a peak of Rs 3,456.25, exceeding the closing price of Rs 3,442.75 on January 24, 2023. Additionally, its market capitalization briefly surpassed the pre-Hindenburg report level of Rs 3,92,473.89 crore.
The Hindenburg Research report caused a significant setback of $150 billion to the market capitalization of the Adani group. Allegations within the report, including accusations of stock manipulation and accounting frauds at Adani group companies, triggered a sharp decline in Adani group shares. As a result, Gautam Adani, the group’s founder, who briefly held a net worth of $150 billion in September 2022, dropped out of the top 20 billionaires following the report. Adani’s personal wealth plummeted to a low of $37.7 billion on February 27, 2023.
Subsequently, a committee was established to investigate the allegations. The Supreme Court dismissed the Hindenburg report’s heavy reliance on the OCCPR report and third-party organizations, stating that such unverified reports could not be considered as conclusive evidence.
Currently, Gautam Adani’s net worth stands at $109 billion, ranking him as the 13th richest person globally. This places him slightly behind Mukesh Ambani, whose net worth is $114 billion according to the Bloomberg Billionaire Index.
Recently, the Adani group came under scrutiny following a Financial Times (FT) article alleging that in 2013, the group imported substandard coal and subsequently sold it to state-owned entities at the price of high-grade coal.
Cantor Fitzgerald dismissed the FT article as “old news,” emphasizing a share price target of Rs 4,338 for Adani Enterprises. The firm noted that the market seemed to dismiss the report, suggesting it was perceived as insignificant. Cantor Fitzgerald stated, We believe the market is inferring that this is an immaterial story, as do we.
Taking a broader perspective, India stands out as one of the fastest-growing economies, with substantial investments across various sectors to sustain its economic expansion. Cantor Fitzgerald highlighted this as favorable for Adani Enterprises, considering its involvement in numerous aspects of Indian life.
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From a granular perspective, we assess that Adani’s valuation fails to fully capture the perceived worth of its existing array of established and developing ventures. With ongoing growth and maturation of these ventures, coupled with the imminent demerger of businesses within Adani, we anticipate shares will better reflect Adani’s comprehensive valuation, Cantor Fitzgerald commented.
Adani Enterprises shares have surged by 38 percent over the past year.
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