Adani Group’s fortunes in a downward spiral: An account of its listed firms after Hindenburg report

New Delhi: The uninterrupted sell-off in Adani Group’s multiple stocks for past few days has not just taken away the sheen from Indian conglomerate but also eroded its wealth by many billion dollars.

The market capitalization of billionaire Guatam Adani’s company has slipped below $100 billion, in less than month-old report by US short-selling firm Hindenburg Research.

Adani Enterprises, the flagship company along with other listed Adani stocks have lost a combined market value of more than Rs 11 lakh crore or $135 billion in less than a month.

Out of 10 listed firms of the Adani Group, multiple firms have recorded a free-fall, plunging to as low as 55% fall in stock value.

Post the massive rout in Adani Group stocks, Adani Green has put its Rs 10,000 crore capex plan under review while other big firms have also deferred expansion plans.

A look at rout in Adani Group stocks:

1) Adani Enterprises

Adani Enterprises, being the flagship company of India’s largest conglomerate has witnessed huge erosion in market value. The scrip has lost more than 54% of its stock value in less than a month, slipping from Rs 3,435 to Rs 1,563.90 per share.

The stock witnessed a steep drop after Hindenburg report became public and since then has been on a downward
spiral.

2) Adani Green

Adani Green is another stock to be worst hit by the Hindenburg report. Its market value has plummeted by nearly 71% in less than a month and was seen trading at 52-week low of Rs 567/40 per share on Tuesday.

In January last, the stock hovered around 1900/share. Adani Green Energy’s m-cap has dipped to about Rs 89,000 crore and the embattled group also chose to puts its Rs 10,000 crore capex plan under review.

3) Adani Power

Adani Power is another stock to have clocked steep decline in its value, in backdrop of damaging allegations by US short-selling firm. The company has lost more than 30% of stock value in a month.

The stock has though shown signs of recovery with the scrip hitting upper circuit in last 2 trading sessions but how effective would be the turnaround will only become clear in days to come.

4) Adani Wilmar

This is Adani Group’s FMCG arm. Though, it is one of the few company stocks to have remain ‘insulated’ from scrip volatility, the decline was still more than 20% in last than 1 month.

5) Adani Ports

Adani Ports, is one of the most important stocks of Adani Group and also the least impacted over Hindeburg’s report. This had also plummeted in wake of ‘disclosures’ by US firm but it showed sharp recovery in days to come. The company, with its operations accounting for more than 30% of India’s ports business, remains one of the mainstays of Group.

The US based firm Hindenburg Research released its 106 page report on January 25, accusing the Adani Group of brazen stock manipulation and involvement in accounting fraud. In a firm rejoinder, Adani Group issued a point-by-point rebuttal to the litany of allegations and called it a ‘calculated attack on India’.

Though, Gautam Adani-led behemoth is mapping its comeback from one of its worst setback, the challenges are umpteen. Group’s recent endeavour to win back investors’ faith & confidence, post the rout, has clearly not worked to its expectations.