New Delhi:
January 24, 2023 Short Sellers of Hindenburg Adani Group Serious allegations on, followed by the US administration’s attack on Adani Group on November 21, 2024. Two major attacks in about two years and Adani Group’s recovery from these attacks. Bernstein has done an analysis on what effect these two attacks had on the Adani Group and how these two attacks were different from each other. In which it has been told how Adani Group controlled the risks and made significant improvements in it.
India Infra: Adani Group – What is different this time? In this report released in the name of, Bernstein has said that in the two years since the first attack, there has been tremendous improvement in the parameters of Adani Group’s debt, pledged shares, valuations and leverage. It has also been assessed as to what level the risks are compared to before.
Bernstein covers three Adani Group companies: Adani Green, Adani Ports and Ambuja Cement. Bernstein has said that even after the latest developments, he has not made any change in the ratings of these three companies of Adani Group. Bernstein has examined Adani Group on many parameters and has said that the risks which were there during the attack of short sellers have improved to a great extent.
Share Pledge
Bernstein said in his note that during the allegations against short-seller Hindenburg Research, great concern was raised about the pledged shares. Now there has been a decrease in the pledged shares of all the companies. Bernstein says that this is an area where Adani Group has taken important steps in the last one and a half years.
Bernstein has said in his report that the pledge in Adani Power has reduced from 25% to 1%, while Adani Ports had 17% pledged shares, which has now become zero. While there has been such huge success on the redemption of pledged shares, on the other hand promoters’ holding in the entire group has also increased. Especially in Ambuja Cements, where due to warrants, promoters’ holding has increased from 63% to 68%.
Debt
Adani Group has also reduced its debts rapidly. Bernstein has said in its report that after the short seller incident, overall debt on the group has reduced. With the increase in EBITDA, the group’s ‘Net Debt to EBITDA’ has improved rapidly. The Net Debt to EBITDA ratio used to be 4.4 in March 2023, which has improved to 2.7 in September 2024. This happened because as work increased rapidly, profits improved. In the last few years, Adani Group has adopted the path of raising money through bonds instead of taking loans from banks.
Loan Payment (Repayment and Tricky Loans)
Adani Green was last due to repay a large portion of its debt in FY25, including a $750 million holdco bond, which fell sharply in the incident. Bernstein says the loan repayment schedule is now more balanced. The company has cash of Rs 5,900 crore, so this time it does not seem to be a matter of concern.
Strong rally continues in Adani Group shares
After the latest attack by the US administration, there has been a tremendous rise in the shares of Adani Group. These allegations were made on November 21, after which there was a decline in the shares of Adani Group, but in the last five trading sessions, the shares of Adani Group have gained momentum, they have risen by more than 40%.
#AdaniGroup Great rise in all the shares of
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The market cap of Adani Group had fallen to Rs 11 lakh crore on November 22, but the fall in the market cap has been completely recovered. On November 19, the market cap of 10 companies of Adani Group was Rs 13.15 lakh crore. Today on Tuesday the market cap has crossed Rs 14 lakh crore.
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