Adani Enterprises Shares rebound from Hindenburg Losses; Brokerage initiates New Price Target at Rs.4,338
Adani Enterprises, the flagship firm of Adani group has recovered from losses it incurred post Hindenburg Research report in January 2023. This drove a 13% leap in its share price over the past month. On Friday, the shares climbed to 3,456.25 rupees – more than they were trading before the Hindenburg report was published.
The Hindenburg report goes on to claim that Adani has manipulated stocks and been guilty of accounting fraud. As a result, the company’s share prices plummeted and $150 billion was wiped off its market value. Consequently, Gautam Adani dropped out of the list of 20 richest people in the world as his net worth fell from $150 billion reported in September 2022 to just $37.7 billion by February 2023- essentially wiped off over three-fourths of wealth since the scandal broke out!
A committee was set up to enquire into the allegations, and the Supreme Court observed the Hindenburg report relied too much on uncorroborated material. Today, Gautam Adani ranks 13th in the list of the world’s richest with $109 billion, just behind Mukesh Ambani who has $114 billion.
The other day, a report said Adani sold worthless coal at inflated prices to state firms in 2013. However, the US financial services firm Cantor Fitzgerald termed it old news and fixed a price target of Rs.4,338 for Adani Enterprises shares, implying the market is not concerned.
Cantor Fitzgerald believes Adani Enterprises is sitting on a strong portfolio as the Indian economy is growing at a rapid pace. The group is present in most of the sectors of the economy which are the drivers of the economy. They are of the view the stock is worth far more than the current market price and the true valuation will be realised as the various businesses scale up. In the last year, shares of Adani Enterprises have risen by 38%.
