Most Adani stocks recover from Hindenburg-led mayhem, but worries persist

economictimes.indiatimes.com:

Adani Group companies regained some of the lost ground in the June quarter after seeing mayhem in the March quarter that was triggered by the massive negative report of US-based Hindenburg Research. Shares of Adani Group’s flagship company Adani Enterprises net gained over 36% in the quarter ended June, after shedding 55% in the preceding quarter. Shares of Adani Power gained more than 30% in the last quarter, recouping almost all of the losses it made in the March quarter.

In late January, Hindenburg had made major allegations against the Adani Group, including share price manipulation through shell companies, corporate misgovernance, highly leveraged books, and even went on to call it the biggest con in corporate history. As a result, the group lost billions of dollars in market value and that shook investors’ confidence considerably. However, the group’s efforts to bring down its debt, reduce pledged shares, major equity infusion by GQG Partners, and positive initial findings by the Supreme-court appointed panel helped in driving the recovery in the stocks.

The cumulative market capitalization of Adani Group stocks rose by more than 10% sequentially in the June quarter to Rs 10 lakh crore. The group reduced the consolidated debt on books by $2.65 billion through prepayment of share-backed loans and the loan taken to acquire Ambuja Cements. The group portfolio’s combined net debt to operating improved to 3.27x in FY23 from 3.81x in FY22.