Adani Group shares sell off – 10 things you need to know

However, the company has also faced criticism and controversy. For example, the latest Adani-Hindenburg saga.

The US-based short-seller released a lengthy report criticizing the Adani Group at a time when the company’s flagship firm Adani Enterprises was on track to achieve its targets. 200 billion (bn) through a follow-on public offer (FPO).

The market became so unpredictable after the release of the report. Take a look at the table below to see the performance of Adani Group stocks after the release of the report.

brutal selloff

name of the company	Change (%)
ACC Limited	-22%
Adani Enterprises Limited	-45%
Adani Green Energy Limited	-46%
Adani Ports and Special Economic Zone Limited	-40%
Adani Power Limited	-26%
Adani Total Gas Limited	-56%
Adani Transmission Limited	-44%
Adani Wilmar Limited	-27%
Ambuja Cements Limited	-31%

Source: Equitymaster

Our fundamental research effort has never recommended Adani stocks. So, we’re watching from the sidelines.

We recently wrote on Adani Group, keeping readers updated with the latest developments.

These editorial pieces bring together all the latest updates on Adani shares, including articles and videos that provide a comprehensive overview of the companies and its impact on the stock market.

Let’s start with the most important thing… which is examining whether you should buy the dip in Adani Group shares.

Time to buy declining Adani Group shares?

Richa Agarwal, Lead Smallcap Analyst at Equitymaster, writes to her readers discussing whether this is the time to buy Adani shares, now that the bad news has hit prices…

Here he wrote:

Will I consider Adani Group shares down?

Well, as you might have guessed, I wouldn’t.

For one, I don’t think a tiger changes its stripes. The group does not have a good reputation when it comes to corporate governance. While the markets may have ignored this at times, I will not. If there is a major change at the promoter and management level, I may convert. But at the moment it seems less likely.

Second, despite the correction, the valuation of Adani Group shares still doesn’t make sense for me, given their fundamentals. Most of these stocks are still riding the narrative in my view, while the business remains very bullish.

Read the full editorial here: Should you buy the dip in Adani Group shares?

Rahul Shah on selling Adani shares…

Rahul Shah, our deep value guru and co-head of research at Equitymaster, examines whether there are any Adani Group stocks that look attractive post the downturn.

Here is Rahul:

Has any of the Adani group companies managed to put up a performance that would compel me to change my mind?

I do not think so. Companies with weak fundamentals like Adani Power or Adani Green Energy have hardly managed to outperform, while expensive ones like Adani Total Gas or Adani Ports don’t look cheap even after the recent fall.

In view of this, I am not inclined to keep any of the group company stocks in my watch list at present.

Rahul is still playing the waiting game.

Watch his full editorial here: Adani Group Stocks You Should Add to Your Watchlist

How to avoid stocks like Adani Tanushree…

Tanushree Banerjee, co-head of research, recorded a video discussing the recent volatility in Adani Group shares and how it reminded her of Vakrangee.

Watch this video to find out more: How to identify stocks like Adani and Vakrangee,

Here is a list of our top recent editorials on Adani Group

Track Adani Group Companies Fundamentals & Valuations

As things stand now, selling in Adani Group shares intensified after Credit Suisse and Citigroup stopped accepting bonds of Adani companies as collateral for margin loans.

Mega FPO has also been withdrawn. The FPO was fully subscribed on the third day despite the company’s shares closing at a discount of 5%-10% to the FPO price band.

,For me the interest of my investors is paramount and everything else is secondary. Hence we have withdrawn the FPO to protect the investors from possible lossesAdani said in a message to shareholders.

The Adani-Hindenburg story will keep the markets busy for a long time to come…

Meanwhile, you can quickly find both the fundamentals and valuations of Adani Group shares on Equitymaster indian stock screener,

We recently added a new section to the Screener where you can view the fundamentals of companies within a business group in one screen. This will help you get a better grip on the fundamentals, trade group wise.

Disclaimer: This article is for information purposes only. This is not a stock recommendation and should not be treated as such.

This article is syndicated equitymaster.com