From Crisis to Comeback: How Adani Group Stock Bounced Back from Hindenburg Effect

First among the equals is Adani group stock Ports and SEZ, which has seen its share price bounce back to pre-Hindenburg levels.

As of Tuesday, Adani Ports & SEZ shares rose by 6% to 773 apiece, up from the closing price of 761 on January 24. Hindenburg Research’s report was published on that day, sparking a group-wide sale. In its statement, Hindenburg Research said it had taken a short position on the group.

In mid-market trade, the adani group stock lost some of its momentum and is now trading at 746 per share

In its report on the Adani-Hindenburg row, a Supreme Court-appointed panel said it could not find any failure on the part of the regulator.

So far this week, the cumulative market capitalisation of the Adani group has increased by 1.96 lakh crore.

Despite the market meltdown, Adani Ports stock has been one of the most resilient in the Adani flock. This company was among the slowest to fall and has regained all its post-Hindenburg losses.

As well as Adani Ports, Adani Power is just 5% below its January 24 level after making a full recovery. Nevertheless, other group companies such as Adani Total Gas and Adani Transmission have experienced substantial declines of 81% and 69%, respectively, and are still far from recovery.

India’s largest port company is Adani Ports

According to ICICI Direct, Adani Ports & SEZ is India’s largest private port operator, handling a quarter of the country’s total port cargo.

In a report, the brokerage said the company had evolved from a single port handling a single commodity to an integrated logistics platform.

In its FY23 business update, Adani Ports reported a 9% YoY increase in its port cargo volumes which stood at 339 million metric tonnes (MMT) in FY23. According to Karan Adani, chief executive officer, Adani Ports & SEZ, Mundra is outpacing all its closest rivals in terms of volume handled and continues to be the nation’s largest port.

There were 155 MMT of cargo volumes handled by Mundra port alone during the year, with roll-on roll-off handlings reaching a record high of 2,09 lakh cars.

On the west coast, Adani Ports operates 12 ports, including Mundra, Dahej, Tuna, and Hazira in Gujarat, Mormugao in Goa, and Dighi in Maharashtra, and on the east coast, Dhamra in Odisha, Gangavaram, and Krishnapatnam in Andhra Pradesh, and Ennore, Karaikal, and Kattupalli in Tamil Nadu.

Also Read:

• Adani Ports Achieves Highest-Ever Rail Cargo of Over 120 MMT in FY23
• A petchem project worth Rs 34,900 crore has been suspended by Adani Group in the wake of Hindenburg
• Adani Enterprises jumps 11% as all group stocks surge – Adani group’s combined market cap increases by over 82,000 crore in two days
• Adani Shares: Why To Invest Now? Here’s Everything Investors Need To Know