Adani Ports Recoups All Stock Losses Since Hindenburg Row, Adani Enterprises Jumps 18 Per Cent

Shares of Adani Wilmar jumped 9.99 per cent, Adani Power climbed 5 per cent, Adani Transmission (5 per cent), Adani Green (5 per cent), Adani Total Gas (5 per cent) and NDTV (4.99 per cent)

Adani Group’s port unit became the first of its 10 entities to recoup all losses triggered by Hindenburg Research’s bombshell report in late January, as a recent rally in the conglomerate’s stocks gathered steam on Tuesday, as reported by Bloomberg.

According to the news agency, all 10 Adani stocks climbed in early Mumbai trading, with shares of Adani Ports and Special Economic Zone Ltd. surging as much as 7.7 per cent. Flagship Adani Enterprises Ltd. soared almost 19 per cent following a similar jump on Monday. The trigger for the rally since last Friday has been an Indian court panel’s report that found no conclusive evidence of stock-price manipulation as alleged by US short-seller Hindenburg.

All Adani Group stocks extended their rally, with Adani Enterprises climbing nearly 18 per cent on Tuesday morning, after a Supreme Court-appointed panel found no evidence of stock price manipulation in the group companies while a separate Sebi probe into alleged violation of money flows from offshore entities drew a blank.

Shares of Adani Wilmar jumped 9.99 per cent, Adani Power climbed 5 per cent, Adani Transmission (5 per cent), Adani Green (5 per cent), Adani Total Gas (5 per cent) and NDTV (4.99 per cent). The stock of Ambuja Cements jumped 4 per cent and ACC climbed 2.87 per cent.

Some group stocks also hit their upper circuit limits during the morning trade.

The combined market value of 10 Adani stocks has surged about $22 billion since Thursday’s close. The value wipeout since Hindenburg’s report now stands at around $105 billion, down from as much as $153 billion at its worst.

The ports business houses some of Gautam Adani’s most lucrative assets and is touted by market watchers as the group’s crown jewel. It is also the most widely tracked Adani stock among sell-side analysts. At present, all 20 analysts covering the stock have a buy rating, data compiled by Bloomberg show.

“Fundamentals of Adani Ports’ business have remained solid,” said Deven Choksey, managing director of KRChoksey Shares & Securities Pvt. in Mumbai. “Its strong cash-generating ability means that it will get the first priority among investors,” he said, adding that the stock remains under-owned by domestic institutional investors who generally prefer high cash-generating companies.

Two US-currency bonds of Adani Ports maturing in 2027 rose by about 0.2 cents on the dollar on Tuesday. They are still trading 6 per cent below the level before the Hindenburg report.