Popular influencer and certified financial planner D. Muthukrishnan took to Twitter to say he prefers to stay away from Adani Group stocks despite many of the conglomerate’s listed companies turning multibaggers for its investors. 

What Happened: Muthukrishnan, the founder of Wise Wealth Advisors, said he has “zero understanding of their (Adani Group's) business model."

Muthukrishnan's comments were prompted by recent findings of the Hindenburg Research report, which laid serious allegations against the group of companies led by India’s richest and world’s richest person.

The short seller and forensic financial research group accused Adani of “pulling the largest con in corporate history.” It said the conglomerate was engaged in a “brazen stock manipulation and accounting fraud scheme over the course of decades.”

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Following the bombshell report – which also criticized the conglomerate for having several of Adani’s relatives holding key leadership positions, despite regulatory probes against them – the seven publicly-listed companies slumped in red.

“Its 7 key listed companies have 85% downside purely on a fundamental basis owing to sky-high valuations,” Hindenburg Research said, pointing towards the financials of Adani Group at face value.

Meanwhile, Adani Group has repeatedly dismissed debt concerns.

Last year, the debt research firm CreditSights said the group was “overleveraged” and expressed its concerns over the company's debt. It later corrected some calculation errors but continued to maintain its concerns over leverage.

According to Refinitiv data, the debt at seven key listed Adani companies exceeds equity, with debt at Adani Green Energy Ltd exceeding equity by more than 2,000%. 

Price Action: This is how prominent Adani Group shares traded in the early hours of Wednesday on the BSE:

Adani Enterprises shares traded 1.82% lower at ₹3,380.05.

Adani Green Energy shares traded 3.32% lower at ₹1,850.

Adani Ports & Sez saw shares crash 5.37% to ₹720.

Adani Power shares slumped 4.80% to ₹261.60.

Adani Total Gas shares were down 4.35% ₹3,716.30.

Adani Wilmar shares were down 4.58% at ₹546.90.Adani Transmission shares were down 4.95% at ₹2,619.85.

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