despite the recent defeat in Adani Group stocks of companies US-based post Hindenburg Research reportsThe listed firms of the Indian group have retained their astronomical valuations.
What happened: Based on traditional stock-market measures, nearly five of the group’s seven major listed companies are trading at higher price-per-earnings, or PE, multiples than some of the most valuable US companies, such as Apple Inc, AAPL, amazon inc amzn And Walmart Inc wmt,
Also visit Benzinga India: Adani hired top US law firm to settle dust-down after Hindenburg allegations: Report
According to stock exchange data, during trading hours on Monday, the seven core Adani group companies had an average price-to-earnings ratio of 116 times their earnings over the past 12 months. At the same time, comparable PE multiples were 25.6 for Apple, 98.6 for Amazon and 44.41 for Walmart at the end of the previous trading session.
What is Price-to-Earnings: The price-to-earnings ratio indicates what the market is willing to pay for a stock based on its earnings. Higher the PE, more expensive the stock.
Adani Vs. Hindenburg: On January 24, US short-seller Hindenburg accuses Adani Group of engaging in “shameless stock manipulation” and accounting fraud scheme over the course of decades.”
The allegations led to a sharp fall in the group’s listed shares and almost half their value – more than $110 billion – was wiped off the market.
then the chairman Gautam Adani Said The board felt that going ahead with the FPO “would not be morally wrong”. and closed its fully-subscribed FPO.
according to bloomberg reportsThe group has halved its revenue growth target and plans to pause fresh capital expenditure After the Hindenburg shock.
One analyst has also expressed concern that the company could face serious headwinds if valuations fall further. “Any major drop in equity valuations, such as what has happened, would trigger a margin call, with its worst-case scenario turning into a downward spiral that exposes the conglomerate structure,” Anand BatepatiCo-founder of GFM Asset Management in Hong Kong, Said Nikkei Asia.
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