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Synopsis: In the 18 months since Hindenburg Research's initial allegations against the Adani Group, the performance of Adani stocks has been mixed. While some companies have recovered, others continue to face volatility, especially after the latest Hindenburg report. Market experts suggest that the long-term impact on the Adani Group's earnings may be minimal, with short-term fluctuations possibly presenting buying opportunities.
Adani Power Ltd, which initially surged 153% since January 2023, saw a sharp decline of 10.94% on Monday, falling to Rs 619 on the BSE. Similarly, Adani Ports and Special Economic Zone Ltd shares, which had risen by 101%, dropped 4.95% to Rs 1,457.35 during Monday's session. Despite the recent fluctuations, these stocks had managed to recover from the initial fallout of the Hindenburg allegations.
Ambuja Cements Ltd and ACC Ltd also saw positive movements, with Ambuja's shares up 27% and ACC maintaining levels slightly above their January 2023 figures. However, both stocks experienced a 2-3% drop on Monday.
Conversely, Adani Green Energy Ltd and Adani Enterprises Ltd remained down by 6-7% since the initial allegations, with further declines on Monday, dropping to Rs 1,656.05 and Rs 3,018.55, respectively. Other Adani group companies, including Adani Total Gas Ltd, Adani Energy Solutions Ltd, Adani Wilmar Ltd, and New Delhi Television Ltd, have seen their shares fall by 26-78% since January 2023. These stocks faced significant pressure earlier today, falling by as much as 17% before staging a recovery.
In response to these developments, SEBI has completed 23 of 24 investigations into the Adani Group, with the final one nearing completion. Investors are advised to remain cautious and perform due diligence before reacting to market reports, especially considering the market’s sensitivity to such allegations.
Market experts have offered varied perspectives on the impact of the Hindenburg reports. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, emphasized that the stock prices are closely tied to earnings, noting that the Hindenburg report may not have a long-term impact on the Adani Group’s earnings potential. Vinit Bolinjkar of Ventura Securities echoed this sentiment, dismissing the latest allegations as a rehash of old claims without new evidence.
While short-term market reactions to such reports can create volatility, some analysts see potential buying opportunities in the steep declines of Adani stocks.
Disclaimer: Investors should conduct their own research and consult with financial advisors before making investment decisions. Hindenburg Research may have short positions in the securities discussed.
