#AdaniGroup, a conglomerate based out of Ahmadabad was found by Gautam Adani in 1988 with the name of 'Adani Enterprise' (NSE: #ADANIENT). Today, the group does all the businesses one can think of, be it B2B, or B2C.
The group in 2021 stood with Tatas and Ambanis at US$100 bn.
The Adani group saw its glory post COVID 19, when the wealth was quadrupled (261%) in a span of two years or so. The figure alone was US$72.5 billion in 2022.
Very recently, the group has acquired cement giants 'Ambuja Cement (NSE: AMBUJACEM).
It is to no surprise that in 2 years, the flagship #AdaniEnterprises (NSE: ADANIENT) soared almost 3500%. Rest the others, which too saw a great leap forward.
Indian insurance lifeline LIC (NSE: LICI) has also an investment of almost 8% of its AUM ( Assets Under Management).
Recently (on 24 Jan), Hindenburg Research group which is based in US released a report where they alleged the Adani group of fraud and market manipulation. It is equally important to know that the firm is a 'short seller' model based.
'SHORT SELL' - having bearish positions.
This created a ruckus all over the Indian capital markets, to its effect, the Indian benchmark index NIFTY 50 was down by 1.25% on Jan 25th, and 1.61% the next day.
Meanwhile, the group in itself has seen a major turbulence leading to FPO cancellation worth rs. 24000 Cr.
The downfall was not just limited to the capital markets, rather the securities market became the leading reason for a further fall in equity when some credit rating agencies downgraded the debt obligation remarks on Adani group.
Even the bond yields have seen a huge plunge, be it long term or short term bond.
So, what exactly are we trying to imply here ?
We at #INDvest are trying to asses the company fundamentally as well as technically.
We will take the conglomerate a little collectively and as per the market cap.
ADANI ENTERPRISE (NSE: ADANIENT), the flagship entity derives the business from mining, construction, airports, etc businesses.
The stock trades at a PB ratio of 5.73, and a PE of 150, these all ratios were flabbergast high prior to the correction at 427 (P/E).
The stock was trading at a RSI divergence wrt price, with now all seemingly corrected.
The stock makes a hammer at 1D interval.
We at #INDvest see this an a buying opportunity, and feel that Adani is here to stay.
The data and chart for other Adani stocks are as follows;
ADANI PORT (NSE: ADANIPORT) - PB of 2.43 (in line with industry)
ADANI GREEN (NSE: ADANIGREEN)
PB - 27.8
ADANI TRANSMISSIONS LIMITED (NSE: ADANITRANS)
PB - 14.6
ADANI POWER (NSE: ADANIPOWER)
PB - 3.06
PE - 7.16
ROE - 370%
The banks have come out and clarified their exposure condition to the group, so that the situation could be cooled down.
#INDvest - We clearly feel that entities like ADANI ENT, Ambuja Cement, and specially Adani Port are a investible and safeguarded part of this conglomerate.
The group is here to remain, and this is not going out in the history as some SBF fraud (FTX).
STAY INVESTED !
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