Adani Enterprises stock erases all the losses made after the Hindenburg report

Updated : May 24, 2024 13:12
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Editorji News Desk

16 months after the Hindenburg report, Adani Enterprises has finally managed to recover all the losses caused U.S based shortseller's scathing report. Shares of the flagship firm of the Adani group touched an intraday high of Rs 3449.

Adani Enterprises share recovers

As per CNBC-TV18, the shares of Adani Enterprise closed at levels of Rs 3,442 on January 24, 2023, which was the day when the Hindenburg report was released. In just seven trading sessions after January 24, the stock made a 52-week low of Rs 1,017.

As per Moneycontrol, the latest upswing also comes as some analysts expect Adani Enterprises’ stock to be included in the benchmark S&P BSE Sensex Index in June, potentially bringing passive flows.

The Hindenburg report had accused Adani group of manipulating stock value and accounting fraud over decades. Following this, Adani Enterprise called off its Rs 20,000 crore Follow-On Public Offer, which could have been the biggest in the country's history.

Investors backing

However analysts and foreign investors had continued to extend their support for the group since the release of the report. The group received major support from GQG Partners, which in March 2023,  acquired stake in four Adani Group companies. Over the course of the year, the firm went on to increase its stake across other group companies as well. GQG currently owns close to 3.5% stake in Adani Enterprises.

US based brokerage Cantor Fitzgerald has given a bullish coverage for Adani Enterprises shares. The brokerage liked the company as it provides exposure to multiple businesses of the group being the holding company. Cantor Fitzgerald initiated coverage on Adani Enterprises in January this year, with an "overweight" rating and a price target of Rs 4,368.

Meanwhile, the Supreme Court has directed markets regulator SEBI to investigate the Adani-Hindenburg case. 

Also watch: Adani-Hindenburg case verdict: Adani Group stocks soar after Supreme Court ruling

Adani Enterprises

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