Adani Enterprises share

Days after US-based short-seller Hindenberg Research alleged stock manipulation in Adani group stocks, putting an 85% downside target, valuation guru Aswath ...

He has written several books on the topic, including “Investment Valuation: Tools and Techniques for Determining the Value of Any Asset” and “The Dark Side of Valuation: Valuing Old Tech, New Tech, and New Economy Companies.” According to Damodaran, even at Rs 1,531, [Adani](https://www.financialexpress.com/market/brokers-stare-at-losses-as-adani-stocks-remain-shaky/2971162/) Enterprises shares are priced too high, “given its fundamentals (cash flows, growth and risk) and before factoring the damage that might have done to the company’s reputation and long term [value](https://www.financialexpress.com/market/ipo-news/upcoming-tech-ipos-likely-to-see-valuation-correction-redseer-ceo/2972097/), by this short selling episode.” However, Adani is an infrastructure company, and the irrational exuberance that animates pricing in tech or software usually has little play in this sector. In his final assessment, Damodaran looked at how the market have priced Adani Enterprises over time, looking at the multiples that investors have been willing to pay for its operating numbers from earnings to revenues to EBITDA, as well as relative to its accounting value (book value). While the stock was definitely overvalued, Damodaran believes that Hindenburg could be “indulging in hyperbole” when it described Adani to be “the biggest con” in history. Days after US-based short-seller Hindenberg Research alleged stock manipulation in Adani group stocks, putting an 85% downside target, valuation guru Aswath Damodaran said that “it is possible that Hindenburg was indulging in hyperbole.” Damodaran, Professor of Finance at the Stern School of Business at New York University said that the share price of Adani Enterprises was overstretched when it was valued at $53 billion.

In the Hindenburg vs Adani saga, valuation guru Aswath Damodaran has come forward and refuted the former's claims of 'fraud.' Here is how Damodaran explains ...

What makes it surprising at Adani is the fact that this is an infrastructure company, and the irrational exuberance that animates pricing in tech or software usually has little play in this sector.” This also means that the Adani Enterprise value has zoomed from about 12 times EDITDA during 2016-21 to 53 times EDITDA in the most recent two years, as mentioned before. I am puzzled that Hindenburg's short thesis spends as much time as it does trying to convince us that the company is over levered...... [cashflow from Adani Enterprises, Aswath Damodaran decodes](https://www.outlookindia.com/business/from-world-s-third-richest-man-to-defeated-businessman-how-gautam-adani-lost-trust-of-investors-in-10-days--news-258863) how the company funded its investments. Usually, the spike in pricing multiples is a feature of volatile markets. While some stocks revived in an intra-day trading session on Friday, at a time when the group’s stocks are supposedly extremely volatile, Aswath Damodaran has pegged the [fair value for the Adani Enterprises stock at Rs 945](https://www.outlookindia.com/business/hindenburg-vs-adani-aswath-damodaran-values-adani-enterprises-stock-price-at-rs-945-news-259786). The reason, of course, lies in the earlier graph, where we looked at how dependent the Adani companies have been on debt for their funding, rather than equity.” The interest coverage ratio better captures the limited buffer that the company has on its debt load, since the operating income is barely higher than interest expenses,” Damodaran wrote. In fact, a valuation of Adani Enterprises with upbeat assumptions on revenue growth and operating margins, and without factoring any of the Hindenburg accusations of fraud and malfeasance, yields a value of just about ₹ 945 per share, well below the stock price of ₹ 3,858 per share.” Giving a final assessment of the Adani vs Hindenburg issue, Damodaran writes, “Hindenburg should be complimented for their legwork, but their critique of the Adani Group rests on a mix of serious contentions, circumstantial evidence and questionable claims....... Adani, notwithstanding all of its flaws, is a competent player in a business (infrastructure), which, especially in India, is filled with frauds and incompetents,” Damodaran wrote in a blog post on Sunday. Explaining each and every fundamental of the Adani Group, Damodaran aids the decoding by breaking down Adani Enterprises’ 20-year long history into three sub-periods.

Hindenburg Research's decision to only go short on Adani Group securities outside India has highlighted the limitations of the practice in the nation and ...

They also enforce the globally-favored ban on naked shorts, the practice where investors sell shares they haven’t borrowed first. [bevy of restrictions](https://www.sebi.gov.in/sebi_data/commondocs/ssframe_p.pdf) on short selling, including requiring institutional investors to disclose planned trades to the stock exchange before they are executed, and making their retail counterparts close positions each day. Hindenburg Research’s decision to only go short on Adani Group securities outside India has highlighted the limitations of the practice in the nation and the peculiarities of the business empire itself.

Shares of Adani Total Gas, Adani Power, Adani Green Energy and Adani Wilmar were trading 5 per cent down each on the BSE, while Adani Transmission slipped ...

On Monday, shares of the group's flagship firm- Adani Enterprises- crashed about 10% to hit a low of Rs 1,434 on the BSE. Damodaran said even at Rs 1,531, Friday's closing price for Adani Enterprises, the company is priced too high, given its fundamentals that includes cash flows, growth expectations and risks involved. Being over-levered is not a con game, but a risk that equity investors in many investments take to increase their returns,” said Damodaran. NEW DELHI: Adani Group continues to face heat on Dalal Street with most group stocks getting locked into their respective lower price bands of 5% and 10%. Last Updated: 06th February 2023 02:09 PM Published: 06th February 2023 11:14 AM

Lawmakers of India's main opposition party kicked off planned protests at some state-run companies on Monday over the crisis at Adani group, ...

[said](https://reut.rs/3HBlTAv) on Friday the country's banking system remains resilient and stable. Gautam Adani and India's Prime Minister Narendra Modi are from the same state. [(ADAI.NS)](https://www.reuters.com/companies/ADAI.NS) dropped 10%, while Adani Green Energy Ltd [(ADNA.NS)](https://www.reuters.com/companies/ADNA.NS), Adani Total Gas Ltd [(ADAG.NS)](https://www.reuters.com/companies/ADAG.NS), Adani Power [(ADAN.NS)](https://www.reuters.com/companies/ADAN.NS), and Adani Wilmar [(ADAW.NS)](https://www.reuters.com/companies/ADAW.NS) fell roughly 5%. [(APSE.NS)](https://www.reuters.com/companies/APSE.NS) was the only stock to buck the trend, rising 1.2%. [(LIFI.NS)](https://www.reuters.com/companies/LIFI.NS) and State Bank of India (SBI) [(SBI.NS)](https://www.reuters.com/companies/SBI.NS), both of which have exposure to Adani group companies. [said](https://reut.rs/3l5ns1X) on Friday it was not concerned about the exposure to the Adani group, but further financing to its projects would be "evaluated on its own merit". [(ADEL.NS)](https://www.reuters.com/companies/ADEL.NS) was forced to [abandon](https://reut.rs/3Y6Qnl0) a $2.5 billion share sale last week, and group chairman Gautam Adani [lost](https://reut.rs/3Ytnmzw) his crown as Asia's richest person and slipped down the global rankings of the wealthy. India's market regulator [said on](/world/india/indias-market-regulator-says-markets-stable-amid-adani-stock-rout-2023-02-04/) Saturday the country's financial markets remain stable and continue to function in a transparent and efficient manner. [triggered](https://reut.rs/3HDtTBa) a series of credit ratings warnings on Friday with Moody's saying the group may struggle to raise capital, and S&P cutting its outlook on two group companies. [accused](https://reut.rs/3I0hsAI) the Adani group of stock manipulation, unsustainable debt and use of tax havens. [rebuttals](https://reut.rs/3X61xVQ), but that has failed to arrest the unabated fall in its shares. NEW DELHI/MUMBAI, Feb 6 (Reuters) - The crisis engulfing the Adani group intensified on Monday as dozens of members India's main opposition party were detained by police during protests, and parliament was suspended again due to disruptions over the saga.

A detailed calculation shared by the finance professor in his blog shows that the stock's fair value should be around Rs 945 per share without factoring any ...

[Sensex](https://economictimes.indiatimes.com/indices/sensex_30_companies)and [Nifty](https://economictimes.indiatimes.com/indices/nifty_50_companies)Track [latest market news](https://economictimes.indiatimes.com/markets/stocks), [stock tips](https://economictimes.indiatimes.com/markets/stocks/recos)and [expert advice](https://economictimes.indiatimes.com/markets/expert-view)on [ETMarkets](https://economictimes.indiatimes.com/markets). The FPI route is for foreign investment in rupee-denominated debt. The ECB mechanism is for borrowings in foreign currency. The questionable claims are the ones to do with earnings manipulation, since if Adani is manipulating earnings, it is not doing a very good job, reporting low margins and returns," he wrote in the blog. "What sets Adani apart thought is it scale, since a failure on its part to make debt payments will create ripple effects that are vastly greater than a much smaller infrastructure company," he said. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

Hindenburg vs Adani: Days after the Adani Enterprises stock witnessed massive selling along with others from Adani Group, Aswath Damodaran has valued the ...

However, despite upbeat assumptions, Damodaran wrote, "I don't think that there is much doubt that the market was over stretched when it valued the Adani companies collectively at $220 billion (₹ 17,600 billion) and Adani Enterprises at $53 billion (₹ 4,243 billion). Explaining his stance and calling Hindenburg's claims a 'hyperbole,' Aswath Damodaran said that the market may have been overstretched when it valued Adani companies collectively at $220 billion. In an explosive blogpost dissecting the Adani crisis, Damodaran has valued Adani Enterprises share at Rs 945 a piece.

In his blog published on February 4, Damodaran, a widely respected authority on valuations, said Adani Enterprises with 'upbeat' assumptions on revenue ...

[Sensex](https://economictimes.indiatimes.com/indices/sensex_30_companies)and [Nifty](https://economictimes.indiatimes.com/indices/nifty_50_companies)Track [latest market news](https://economictimes.indiatimes.com/markets/stocks), [stock tips](https://economictimes.indiatimes.com/markets/stocks/recos)and [expert advice](https://economictimes.indiatimes.com/markets/expert-view)on [ETMarkets](https://economictimes.indiatimes.com/markets). The FPI route is for foreign investment in rupee-denominated debt. For fastest news alerts on financial markets, investment strategies and stocks alerts, [subscribe to our Telegram feeds](https://t.me/joinchat/J60pKE7SOStsj5sI8nDmHQ).) The ECB mechanism is for borrowings in foreign currency. Those risks increase if the family group companies are built around political connections, where you are one political election loss away from your biggest competitive advantage." "Even with a further share drop, I am not tempted to buy shares in Adani companies.

Shares of Adani Group's flagship firm are still expensive on some metrics despite plunging more than 50% in the rout triggered by US short seller Hindenburg ...

The stock traded at 1,561 rupees in Mumbai at 12:30 pm on Monday, 40% more than the value ascribed by Damodaran, whose work has been widely published in leading finance journals. [blog post](https://aswathdamodaran.blogspot.com/2023/02/control-and-complexity-deconstructing.html) on Feb. yielded a value of 945 rupees per share even before “factoring any of the Hindenburg accusations of fraud and malfeasance,” Aswath Damodaran of New York University wrote in a

The Reserve Bank of India said, “the banking sector remains resilient and stable,” citing its own assessment of the current situation. The Bloomberg ...

[saying the country's two main indexes](https://www.sebi.gov.in/media/press-releases/feb-2023/sebi-statement-on-market-stability_67831.html) have demonstrated "ongoing stability" and are "continuing to function in a transparent, fair and efficient manner." "Various parameters relating to capital adequacy, asset quality, liquidity, provision coverage and profitability are healthy," the RBI said in a Friday statement. It added that it will continue to monitor the stability of the industry. [Bloomberg Billionaires Index](https://www.bloomberg.com/billionaires/profiles/gautam-s-adani/) showed founder and Chairman Gautam Adani's net worth fell further on Friday. [Adani Port and Special Economic Zone](/quotes/ADANIPORTS-IN/) bucked the trend and traded 2% higher, but they remained volatile. [Reserve Bank of India](https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55166) said that "the banking sector remains resilient and stable," citing its own assessment of the situation. The regulator mentioned the Additional Surveillance Measure (ASM) framework – which compiles a list of companies about which the regulator advises investors to be "extra cautious while dealing in these securities," according to the 'Resilient and stable' [Nomura and HSBC](https://www.cnbc.com/2023/02/01/adani-vs-hindenburg-how-asias-richest-man-lost-his-crown-in-just-a-few-days.html) in saying that the latest developments are unlikely to result in a spillover effect for the wider Indian stock market. [statement it's released](https://www.adani.com/-/media/Project/Adani/Invetsors/Adani%20Portfolio_Response_270822_vFF) in response to Hindenburg accusations of stock manipulation and fraud. [Adani Enterprises](/quotes/ADANIENT-IN/) lost 4%, and [Adani Transmission](/quotes/ADANITRANS-IN/) fell 10% in Mumbai's morning session. [Adani Green Energy](/quotes/ADANIGREEN-IN/), [Adani Power](/quotes/ADANIPOWER-IN/) and [Adani Total Gas](https://www.cnbc.com/quotes/ATGL-IN) fell 5% each.

Shares of Adani Total Gas, Adani Power, Adani Green Energy and Adani Wilmar were trading 5% down each on the BSE.

Similarly, the broader NSE Nifty slipped 140.80 points or 0.79% to 17,713.25 points. It was later trading at ₹1,480.65, down 6.54% on BSE. [SEBI on Saturday said it is committed](https://www.thehindu.com/business/markets/committed-to-ensuring-market-integrity-measures-in-place-to-address-excess-volatility-sebi-on-adani-crisis/article66471017.ece) to ensuring the stock market's integrity, and all necessary surveillance measures are in place to address any excessive volatility in individual shares. [dismissed the charges](https://www.thehindu.com/business/Industry/adani-response-confirms-findings-ignores-key-questions-hindenburg-on-adani-rebuttal/article66449151.ece) as lies, saying it complies with all laws and disclosure requirements. Shares of Adani Total Gas, Adani Power, Adani Green Energy and Adani Wilmar were trading 5% down each on the BSE, while Adani Transmission slipped 10%. Shares of Adani Group firms tumbled further on the bourses, with shares of Adani Enterprises witnessing a fall of 9.50% as investors continue to offload their holdings.

A detailed calculation shared by Aswath Damodaran in his blog shows that the fair value of Adani Enterprises stock should be around Rs 945 per share without ...

[Sensex](https://economictimes.indiatimes.com/indices/sensex_30_companies)and [Nifty](https://economictimes.indiatimes.com/indices/nifty_50_companies)Track [latest market news](https://economictimes.indiatimes.com/markets/stocks), [stock tips](https://economictimes.indiatimes.com/markets/stocks/recos)and [expert advice](https://economictimes.indiatimes.com/markets/expert-view)on [ETMarkets](https://economictimes.indiatimes.com/markets). The FPI route is for foreign investment in rupee-denominated debt. The ECB mechanism is for borrowings in foreign currency. The questionable claims are the ones to do with earnings manipulation, since if Adani is manipulating earnings, it is not doing a very good job, reporting low margins and returns," he wrote in the blog. "What sets Adani apart thought is it scale, since a failure on its part to make debt payments will create ripple effects that are vastly greater than a much smaller infrastructure company," he said. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.

Damodaran said risks increase if the family group companies are built around political connections, "where you are one political election loss away your ...

"Adani, notwithstanding all of its flaws, is a competent player in a business (infrastructure), which, especially in India, is filled with frauds and incompetents. "As for the institutions involved, which include banks, regulatory authorities and LIC, I have learned not to attribute to venality or corruption that which can be attributed to inertia and indifference. Valuation guru Aswath Damodaran says he will not be tempted to buy shares of Adani group companies even if the group shares fall further.

The sell-off in Adani Group stocks entered a third week with flagship Adani Enterprises shares plummeting as much as 10%. The counters have been under heavy ...

Days after US-based short-seller Hindenberg Research alleged stock manipulation in Adani group stocks, putting an 85% downside target, valuation guru Aswath ...

Traders usually hold on to their bets overnight when they are more certain that there wouldn't be an event after market hours that could backfire.

[Sensex](https://economictimes.indiatimes.com/indices/sensex_30_companies)and [Nifty](https://economictimes.indiatimes.com/indices/nifty_50_companies)Track [latest market news](https://economictimes.indiatimes.com/markets/stocks), [stock tips](https://economictimes.indiatimes.com/markets/stocks/recos)and [expert advice](https://economictimes.indiatimes.com/markets/expert-view)on [ETMarkets](https://economictimes.indiatimes.com/markets). Several [short sellers](/topic/short-sellers)in the domestic market mostly stuck to intra-day bets on Adani [derivatives](/definition/derivatives)since the sell-off began on January 25 triggered by the adverse report by Hindenburg Research. "Many HNI traders squared off their positions on Friday because of the exchange's ASM decision that resulted in margins doubling," said Kabani. Brokers said those who held on to futures positions bets overnight in this period are those holding Adani Group shares or proprietary desks and knowledgeable high net-worth traders who have created complex trading strategies using a mix of futures and options contracts. Specifically, in Adani Enterprises, a large purchase prompted short sellers to rush to cover their positions. [Volatility](/definition/volatility)is considered the lifeblood of battle-hardened traders, but many of these [market](/topic/market)participants chose to err on the side of caution when it came to punting on [Adani Group](/topic/adani-group)stocks amid the sharp swings of late.

Shares of Adani Enterprises witness a fall of 9.50% as investors continue to offload their holdings.

Similarly, the broader NSE Nifty slipped 140.80 points or 0.79 per cent to 17,713.25 points. It was later trading at ₹1480.65, down 6.54 per cent on BSE. [Ambuja Cements](https://www.thehindubusinessline.com/stocks/ambuja-cements-ltd/overview) tanked 3.28 per cent, [ACC](https://www.thehindubusinessline.com/stocks/acc-ltd/overview) dropped 0.82 per cent, and [NDTV](https://www.thehindubusinessline.com/stocks/new-delhi-television-ltd/overview) fell 4.98 per cent. Also read: [Sensex and Nifty](https://www.thehindubusinessline.com/markets/sensex-nifty-fall-in-early-trade-on-fed-rate-hike-fears-adani-uncertainty/article66476427.ece) -- were trading in the negative territory. [RBI seeks details of banks’ exposure to Adani Group](https://www.thehindubusinessline.com/money-and-banking/rbi-seeks-details-of-banks-exposure-to-adani-group/article66463059.ece) [Adani Power](https://www.thehindubusinessline.com/stocks/adani-power-ltd/overview), [Adani Green Energy](https://www.thehindubusinessline.com/stocks/adani-green-energy-ltd/overview), and Adani Wilmar were trading 5 per cent down each on the BSE, while [Adani Transmission](https://www.thehindubusinessline.com/stocks/adani-transmission-ltd/overview) slipped 10 per cent. [Adani group counters questions raised by Hindenburg Research](https://www.thehindubusinessline.com/companies/adani-group-counters-questions-raised-by-hindenburg-research/article66448132.ece) [stock market's integrity](https://www.thehindubusinessline.com/markets/sebi-reassures-market-participants-of-stability/article66471088.ece) and all necessary surveillance measures are in place to address any excessive volatility in individual shares. [Adani Ports and Special Economic Zone](https://www.thehindubusinessline.com/stocks/adani-ports-special-economic-zone-ltd/overview) was trading marginally higher at ₹501.50, up 0.53 per cent. [Adani Enterprises: FPO U-turn](https://www.thehindubusinessline.com/portfolio/stock-fundamental-analysis-india/adani-enterprises-fpo-u-turn/article66470411.ece) [Adani Enterprises](https://www.thehindubusinessline.com/stocks/adani-enterprises-ltd/overview) witnessing a fall of 9.50 per cent as investors continue to offload their holdings.