Mumbai: There has been a dramatic decline in Adani Groupafter charges by shares of Hindenburg Research According to Bloomberg Economics, the spread is unlikely to spread to other Indian conglomerates as they perform well on key business parameters.
most major companies including Reliance Industries Limited And this Tata GroupScored higher than the port-to-power group in BE’s analysis of governance, liquidity and leverage positions among India’s top 17 trading houses.
“Adani is an outlier and not representative of Indian business as a whole,” economists Abhishek Gupta, Scott Johnson and Tom Orlick said in their report on Tuesday. “Conglomerates from India do not yet rank among global giants like Apple and Tesla. But neither are they going to fall in the heap of failures of governance.
In its January 24 report, short seller Hindenburg Research alleged accounting fraud and stock manipulation Gautam Adanitriggered a stock rout in the billionaire empire, wiping $127 billion off the group’s market value. Adani The allegations have been denied repeatedly.
Economists said it has a relatively low proportion of freely tradable shares, which means excessive control by the founders which has led to rich valuations. It also has the lowest liquidity ratio among peers, he added.
According to the report, its flagship firm Adani Enterprises Ltd is covered by just two analysts as against an average of 33 for the 50 largest companies. Although the group is highly leveraged compared to peers, its profits are barely enough to cover interest expenses.
The crisis has raised questions about India’s credibility as a global growth engine and a destination for international investors. Earlier this month, MSCI lowered the free float of four Adani-owned companies, while Moody’s Investors Service downgraded its outlook on Adani Green Energy and three other group firms.
Economists said, “It is likely that short sellers will not dominate India Inc’s narrative in the coming years.” “With India’s GDP set to outperform once again, the country’s firms will have a chance to take another step on the path from national champions to global giants.”
most major companies including Reliance Industries Limited And this Tata GroupScored higher than the port-to-power group in BE’s analysis of governance, liquidity and leverage positions among India’s top 17 trading houses.
“Adani is an outlier and not representative of Indian business as a whole,” economists Abhishek Gupta, Scott Johnson and Tom Orlick said in their report on Tuesday. “Conglomerates from India do not yet rank among global giants like Apple and Tesla. But neither are they going to fall in the heap of failures of governance.
In its January 24 report, short seller Hindenburg Research alleged accounting fraud and stock manipulation Gautam Adanitriggered a stock rout in the billionaire empire, wiping $127 billion off the group’s market value. Adani The allegations have been denied repeatedly.
Economists said it has a relatively low proportion of freely tradable shares, which means excessive control by the founders which has led to rich valuations. It also has the lowest liquidity ratio among peers, he added.
According to the report, its flagship firm Adani Enterprises Ltd is covered by just two analysts as against an average of 33 for the 50 largest companies. Although the group is highly leveraged compared to peers, its profits are barely enough to cover interest expenses.
The crisis has raised questions about India’s credibility as a global growth engine and a destination for international investors. Earlier this month, MSCI lowered the free float of four Adani-owned companies, while Moody’s Investors Service downgraded its outlook on Adani Green Energy and three other group firms.
Economists said, “It is likely that short sellers will not dominate India Inc’s narrative in the coming years.” “With India’s GDP set to outperform once again, the country’s firms will have a chance to take another step on the path from national champions to global giants.”