The year 2023 proved a volatile one for stocks of the Adani Group, following allegations from US-based Hindenburg Research that accused the FMCG-to-energy conglomerate of financial wrongdoing. Despite these challenges, as the year comes to an end several of the group's stocks have made a remarkable recovery.
The Investment: So, if we turn back the clock to February 24, 2023 – a month after Hindenburg accused Gautam Adani of "pulling the largest con in corporate history" on Jan 24 – the closing price of Adani Enterprises was ₹1,315.65. If you had taken a leap of faith and invested ₹10,000 at this time, you would have been able to purchase roughly 7 shares. Fast forward to today, with the current price level of around ₹2,900, those shares would now be worth approximately ₹20,300.
The Recovery: The Adani Group stocks have made a significant recovery these past few weeks. The stocks that gained momentum after the Supreme Court concluded the hearing in the Adani-Hindenburg case last month have propelled to new heights. Stocks such as Adani Power and Adani Ports have not only regained pre-Hindeburg levels but surged to new record highs.
Today, most of the listed Adani Group companies are surging in the green. The surge in the stock has also helped chairman Gautam Adani to rise up the ranks of the world’s richest list. As per the Bloomberg’s Billionaire’s Index, he currently sits at the 16th spot. However, his net worth is still down around $50 billion from the highs before the Hindenburg report.
Price Action: Adani Enterprises' share price was down 1.57% to trade at ₹2,912.95 in the afternoon hours of trading on Wednesday.
Disclaimer: Benzinga India doesn't give financial advice. The above article is for educational purposes alone.
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