Buy Adani Group stocks on dips, remain bullish on large banks, NBFCs: Deven Choksey
Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd, says the assets the Adani group owns, whether it's in power generation, distribution, or even things like roads, airports, data centers, and ports, all have huge growth potential ahead. They've built up a solid capacity and are reinvesting a good chunk of cash flow back into the business, which is a smart move. They might tweak their growth strategies a bit, but using their free cash flow to fuel future expansion in these areas would be a great idea. The recent drop in stock prices is a solid buying opportunity for investors.
Adani stocks fell and they have recovered. Can we ignore the news and just move on?
Deven Choksey: From day one, I have been making a viewpoint that fundamentals do not change because of whatever the allegations have come up from the Department of Justice in the US court. In my viewpoint, the fundamentals remain strong. With Rs 85,000 crore EBITDA and growing at the rate of 20% per annum on a 2,40,000 crore debt, the balance sheet of the group itself is very solid with the cash flow generation that they have.
Each of the assets which they have, be it in power generation, power distribution or for that matter road asset, airport asset, even data centres, ports each of these assets that this group has got, they all have significantly large amounts of growth prospects going ahead. The capacity that they have built and the kind of cash flow that they are deploying back into the business they all work well. Maybe to a certain extent, they will
