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Reasons for a 51% increase in Adani Group stocks in 3 days

On 31st January 2023, the brokerage stated that growth in the core business demonstrates support against downside risks. In response to the controversy over the Adani shares overleveraged on 6th February 2023, B&K Securities stated that there is no significant stress on the company based on its brief liability study of Adani Ports.

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Reasons for a 51% increase in Adani Group stocks in 3 days

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  1. REASONS FOR A 51% INCREASE IN ADANI GROUP STOCKS IN 3 DAYS

  2. Adani Ports is expected to record a 12.4% YoY increase in net profit for the December 2023 quarter, coming in at Rs. 1,661.90 crores as opposed to Rs. 1,478.80 crores during the corresponding period in 2022. The Adani Ports & SEZ (Special Economic Zone) stock saw a 46% increase in value from its 52-week low of Rs. 394.95 on 3rd February 2023 to a high of Rs. 596.75 in trading on 7th February 2023. Despite the uproar claiming that the Adani shares overleveraged, Adani Ports is anticipated to release respectable quarterly earnings. This is among the three Adani Group entities that have released pledged shares and prepaid loans. Several brokerages, including Credit Suisse, have stated that the Adani Group stock, which analysts monitor, appears appealing following the recent downturn. In addition, the business provided a positive January business update.

  3. PREPAYMENT, RELEASE OF PLEDGED SHARES Adani Group promoters have declared a $1,114 million prepayment ($1.11 billion, or around 9,203 crores, using the present exchange rate). Shares in Adani Green Energy (A.G.E.L.), Adani Transmission (A.T.L.), and Adani Ports and Special Economic Zone (A.P.S.E.Z.)—all owned by the Adani Group—will be released. Given the recent volatility in the market and in keeping with their pledge to lower the total amount of promoter leverage backed by shares of the Adani listed business, the Adani Group announced that promoters had deposited the sums necessary to prepay $1,114 million before the loan’s September 2024 maturity.

  4. ATTRACTIVE VALUES DESPITE THE ADANI SHARES OVERLEVERAGED CONTROVERSY Credit Suisse upgraded Adani Ports from Neutral to Outperform after the collapse in the company’s shares following the release of the Hindenburg report, highlighting the company’s attractive values. On 31st January 2023, the brokerage stated that growth in the core business demonstrates support against downside risks. In response to the controversy over the Adani shares overleveraged on 6th February 2023, B&K Securities stated that there is no significant stress on the company based on its brief liability study of Adani Ports.

  5. “ADANI SHARES OVERLEVERAGED CONTROVERSY IS JUST TO HAMPER OUR REPUTATION” – GAUTAM ADANI On July 18, 2023, billionaire Gautam Adani stated that the Hindenburg report, which was made public in January 2023, was a compilation of specific misinformation meant to harm the reputation of the Adani Group by igniting a dispute concerning Adani shares overleveraged. He said the report aimed to lower the conglomerate’s stock price, harm its reputation, and make money. During the Group’s 2023 Annual General Meeting, Adani stated that the research published shortly before the follow-on public offer by US-based short seller Hindenburg Research was an intentional attempt to harm the company’s reputation.

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