In a positive development, the total market capitalisation of Adani Group’s listed companies has clawed back to over Rs 11 lakh crore, after an initial knee-jerk reaction post reports by OCCRP, Financial Times and The Guardian. “It is an indication that the current prices factor in all the negatives and the market is ignoring all the incremental allegations. For the group as well as its investors, it could very well mean that the worst is over,” said experts.
The group’s market capitalisation has increased by 40% in the past three months and the rally is being led by the four leading group stocks Adani Enterprises, Adani Ports, Adani Power and Adani Green Energy. Shares of all four companies have more than doubled from their lows. While the flagship company AEL’s stock has gained the highest from its lows (gained up to 150%), Adani Ports and Adani Power, two of the oldest group companies to demerge from the incubator AEL are at pre-Hindenburg level.
The two companies are trading close to 2024 highs. Adani Ports is the most widely tracked company in the group by analysts and the most widely owned by institutional investors among all the group stocks. But despite the claims including those by its outgoing auditors, both analysts and investors have remained positive on the stock. Equity research arms of Goldman Sachs, Jefferies, Bernstein, Kotak and ICICI have all maintained buy on the stock of India’s largest port operating company. Market experts who track the group closely said that there are two main reasons for such a strong show by the group stocks.