First amongst equals: This Adani group stock completely recovers from the Hindenburg effect

• Shares of Adani Ports & SEZ rose by 6% to ₹773 apiece on Tuesday amid a group-wide rally.
  
• Adani Ports’ shares closed at ₹761 apiece on January 24 when the Hindenburg Research report was released.
  
• The Adani group’s cumulative market capitalisation has increased by ₹1.96 lakh crore this week, so far.
  

Adani group stocks are slowly but steadily recovering from the post-Hindenburg effects. The first amongst the equals is Adani Ports and SEZ which has seen its share price bounce back to pre-Hindenburg levels.

Shares of Adani Ports & SEZ rose by 6% to ₹773 apiece on Tuesday, which is higher than the closing price of ₹761 on January 24. That was the day US-based research Hindenburg Research report was first published, sparking off a group-wide selloff. The research firm had then said that it had taken short positions on the group stocks.

However, by mid-market trade, the stock lost some of its momentum and is now trading at ₹746 apiece.

On Friday, a Supreme Court-appointed panel which was tasked to look into the public interest litigations filed in the Adani-Hindenburg row gave its report. The panel said that it could not find any failure on the regulator’s part in the Adani-Hindenburg case.

Since then, a group-wide rally that has added ₹1.96 lakh crore to the cumulative market capitalisation of the Adani group this week, so far.

Adani Ports stock has been the most resilient in the Adani flock even when the market value of the group was melting. This company’s stock was amongst the slowest to fall and is the first group company to recover all its post-Hindenburg losses.


While Adani Ports is the first group company to make a full recovery, Adani Power is close, too, with its shares now just 5% below the January 24 level. However, other group companies like Adani Total Gas and Adani Transmission have seen substantial declines of 81% and 69%, respectively, and still have a long way to go.


Source: NSE, as on May 23, 2023

Adani Ports is India’s largest port company

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

“The company has evolved from a single port dealing in a single commodity to an integrated logistics platform,” the brokerage said in a report.

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

The Mundra port alone handled 155 MMT of cargo volumes during the year, with its roll-on roll-off handlings touching the highest-ever level of 2.09 lakh cars.

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

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