Adani Group companies have added nearly ₹82,000 crore in market capitalisation to cross ₹10-lakh crore for the first time after the wild allegations made by the short-seller Hindenburg Research report in January.
All the 10-Adani Group companies have ended the day on a positive note, taking the overall market capitalisation to ₹10.18-lakh crore with the Supreme Court-appointed committee tasked to look into the Hindenburg allegation in its report said that there is no systemic risk to the Group companies.
Leading investment bank Jefferies has assigned a ‘buy’ rating on two Adani group companiesAdani Ports and Adani Transmission after the Supreme Court-appointed panel almost gave ‘clean chit’ probing the allegation hurled by short seller Hindenburg’s controversial report.
Addressing the recent concerns over deleveraging, the report pointed out that the Adani Group accomplished full prepayment of margin-linked share-backed financing of $2.15 billion before the committed timeline of March 31.
Further, the Adani Group’s move to prepay the $500 million facility taken for the Ambuja acquisition and reduce promoter pledge position has helped deleverage.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said the Supreme Court expert panel in its report maintained that at this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation.
The high integrity of the panel members must have given investors confidence to buy the beaten-down stocks, and some short covering also would have contributed to the rally. However, from the valuation perspective, Adani stocks are not undervalued, he said.
Adani Enterprises, comprised of new age business, gained the most at 18 per cent to close at ₹2,326, while Adani Wilmar and Adani Ports were up 10 per cent and 6 per cent to ₹444 and ₹730.
Ambuja Cement and Adani Power gained five per cent each to ₹424 and ₹248, while Adani Transmission and Adani Total Gas jumped five per cent each to ₹825 and ₹721.
Adani Green, ACC and NDTV were up five per cent each to ₹942, ₹1,815 and ₹186 on Monday.
Manish Chowdhury, Head of Research, Stoxbox said Adani Group stocks rallied on optimism following the Supreme Court-appointed panel’s observation of no regulatory failure around the Adani Group-Hindenburg case of price manipulation.
Moreover, market reports of the Group planning to monetize non-core assets also aided in gains. Though the positive sentimental reaction is to continue in the next few trading sessions, only high risk-taking market participants should venture into these stocks due to heightened volatility, he added.