Despite the Congress’ renewed attack on the Adani Group, investors repose faith in Adani shares on the back of strong half-yearly results.
The market capitalisation of the conglomerate led by billionaire Gautam Adani has increased by over Rs 39,000 crore this week, bringing its total valuation to approximately Rs 15.5 lakh crore, despite renewed criticisms from the primary opposition party, Congress.
Data from the stock market indicates that nine out of the ten publicly listed companies within the ports-to-energy conglomerate experienced a rise in market capitalisation over three trading days, driven by robust financial and operational performance. Adani Enterprises Ltd, the flagship company, contributed the most significant increase, adding around Rs 23,268 crore, followed by Adani Ports & SEZ, which saw an increase of Rs 9,440 crore. Adani Power Ltd was the sole entity to experience a decline in market capitalisation.
Other companies within the group, including Adani Energy Solutions Ltd, Adani Green Energy Ltd, Adani Total Gas Ltd, Adani Wilmar Ltd, NDTV, and cement manufacturers ACC and Ambuja Cement, also witnessed an uptick in their valuations. In response, Congress has released a series of videos targeting the BJP, SEBI chairperson Madhabi Puri Buch, and the Adani group.
These videos, featuring Rahul Gandhi, the Leader of the Opposition in the Lok Sabha, and Congress spokesperson Pawan Khera, have made allegations against the Adani Group, claiming the existence of a “Monopoly Bachao Syndicate.”
The videos referenced earlier controversies, such as the Hindenburg report and the role of SEBI, while also recycling these narratives. Additionally, the Congress party introduced a new allegation, asserting that the Adani Group is developing a defense sector to reduce reliance on imports and to compete with foreign suppliers of arms and ammunition.
An infrastructure analyst from a foreign brokerage, who closely monitors the Adani Group, stated, “The Adani Group operates more than 20 businesses, holding a 20-25 percent market share in the ports and airports sector, while maintaining less than a 10 percent share in its other ventures. The realities of the business contradict the allegations made.”
In spite of the Congress party’s renewed criticisms of the Adani Group, investor confidence in Adani shares remained strong, bolstered by robust half-yearly financial results.
Adani Enterprises Ltd (AEL) and Adani Ports & SEZ Ltd (APSEZ), two of the group’s longest-established companies, reported nearly an eight-fold increase and a 37 percent rise in net profit, respectively.
Since the release of the initial Hindenburg report in January 2023, Adani Group stocks have consistently outperformed negative forecasts and political scrutiny. This resilience is attributed to the group’s solid performance and growth trajectory.
A fund manager, who requested anonymity, remarked, “The market has acknowledged the coordinated efforts to target Adani by external entities. It is evident that the group is executing its strategy effectively, as it continues to exhibit remarkable resilience in both performance and growth.”
