INSUBCONTINENT EXCLUSIVE:
MUMBAI: Adani Group stocks have actually been falling relentlessly given that the damning report by Hindenburg was released on January 24
Over Rs 12 lakh crore in regards to market capitalisation of the Adani scrips has actually been wiped out, but not all group stocks have
This is where the valuation of private stocks enters play
The deep plunge has been possible due to sky-high valuations
The Adani Total Gas stock has crashed nearly 81% given that January 24, while Adani Ports has dived 27% in the exact same duration-- the
fall is in sync with how overvalued they were
Adani Total Gas stock was trading at a multiple of 844 times its revenues on January 24, a number that not even the very best disruptive
technology business can possess, while Adani Ports was at 30 times, according to price-to-earnings (PE) ratios sourced from Refinitiv
Stocks that had relatively lower valuations have actually fallen less
ACC, which had a PE ratio of 54, has actually fallen the least (26%) amongst the 10 Adani Group stocks, followed by Adani Ports (27%) and
A businesss PE ratio is among the indications of how underestimated or overpriced a scrip is in relation to its profit
Technology and customer brand names, apart from other high-growth companies, normally command steeper evaluations than infrastructure or
TCS has a PE ratio of 31, but Tata Steel has 5
Indraprastha Gas has a PE ratio of 18, while Mahanagar Gas has 13-- both these remain in the very same service as Adani Total Gas.A stock
rate indicates the marketplaces perception
When there is a meteoric rise in a specific share, as was seen in the case of Adani scrips amid the pandemic, alarm bells start to ring
In May 2021, ET reported that CLSA had actually dropped protection on Adani Transmission with the foreign brokerage saying that the stock is
driven by speculative interest, keeping valuation at a stratospheric 16 times premium to the sector
That month, Adani Transmission had a PE ratio of 114, which had more than doubled to 351 by January 24 this year
The May 2021 ET report was quoted by Hindenburg Research in its study.In November 2022, V K Vijayakumar, chief financial investment
strategist at Geojit Financial Services, had alluded to stratospheric evaluations too
A major detach between profits and market cap can be seen in the case of Adani stocks
Gautam Adani has shown expertise in carrying out big infrastructure projects, however the dizzying assessments of Adani stocks are a matter
of issue, he had stated in a report
When gotten in touch with, a representative of Geojit Financial Services said the firm doesnt track Adani Group.Interestingly, Adani
business may not be a take deal even after the selloff
Adani Total Gas, which is stuck in a rut of hitting lower circuits considering that the report, is still readily available at 156 times its
Stock-specific actions will continue in Adani Group, Kranthi Bathini, director (equity strategy) at WealthMills Securities,
said.Hindenburgs predictions about Adani stocks become a reality? Groups net worth dips below $44 billion
