Have Adani Stocks Recovered from the Hindenburg Controversy?

Hindenburg has posted “Something Big Soon India” on twitter or X. This likely won’t be positive news for us, for the Indian company that may be the target, or for investors who have invested their hard-earned money in the target company. Since it hasn’t given any hint, just a few words in its Twitter post, we can’t guess the company’s name right now. However, it may create negative signals for Monday’s trading session

Looking back at the Hindenburg-Adani case: On January 24, 2023, Hindenburg Research released a damning report on the Adani Group, alleging financial irregularities and stock manipulation. This revelation led to a severe decline in the stock prices of Adani Group companies, with some falling by as much as 83 per cent. As we evaluate the recovery of these stocks, it is crucial to assess the extent of their rebound and current standing.

Immediate Impact of the Hindenburg Report

The release of Hindenburg Research's report marked a significant downturn for Adani Group stocks. The accusations led to a widespread sell-off, with the group’s stocks dropping between 60 per cent and 70 per cent. The most affected stock was Adani Total Gas, which saw an 83 per cent decrease. Let’s analyze the shares of Adani Group Company.

Adani Enterprises

On January 24, 2023, Adani Enterprises was trading at Rs 3,389. Following the release of the Hindenburg report, the stock plummeted to a low of Rs 1,017, marking a decline of 70 per cent. It took until May 23, 2024, for the stock to recover to its pre-report levels. As of August 9, 2024, the shares of Adani Enterprises are at around Rs 3,188, which is approximately 6 per cent below its price before the report.

Adani Ports

In contrast, Adani Ports has demonstrated a robust recovery. Adani Ports was trading at Rs 761. Following the Hindenburg report, the stock fell to a low of Rs 395, reflecting a 48 per cent decline. It reached its pre-report price again on May 23, 2023, taking 119 days to recover. As of August 9, 2024, the closing price of Adani Ports is Rs 1,534, representing a 101 per cent increase from the closing price when the report was released.

Adani Wilmar

Adani Wilmar's performance is still upsetting the investors. The stock declined from Rs 573 to Rs 286, a 50 per cent drop, and has struggled to regain its former value. Currently, it is trading at Rs 385, which is still approximately 33 per cent below its pre-report level.

Adani Power

Adani Power stands out as one of the success stories post-crises. The stock fell from Rs 275 to Rs 132, a 52 per cent drop, but has since more than doubled its price from the day the research report was published. As of June 7, 2023, it is trading at Rs 695, reflecting a significant recovery and a 153 per cent gain from its crash price. This strong performance indicates a robust rebound and renewed investor confidence.

Adani Energy Solutions

Adani Energy Solutions has experienced a partial recovery. The stock fell from Rs 2,726 to Rs 632, a 77 per cent decline. Currently, it is at Rs 1,104, which is still 60 per cent below its pre-report level. This indicates that while there has been some improvement, the stock remains significantly impacted by the initial report.

Adani Green Energy

Adani Green Energy dropped from Rs 1,917 to Rs 485, marking a 75 per cent decline following the Hindenburg report. However, the stock reached its pre-report levels again on February 7, 2024, after 379 days. Currently, it is trading at around Rs 1,781, showing a modest decline from its pre-report level.

Adani Total Gas

Adani Total Gas remains the most severely affected. The stock plummeted from Rs 3,892 to Rs 650, an 83 per cent decline, and has struggled to recover. It is trading at Rs 870, still approximately 78 per cent below its pre-report level. This slow recovery highlights the ongoing challenges faced by the company.

Do comment below if you have any Adani stocks mentioned in the article. Additionally, we have not included ACC, Ambuja Cements, NDTV, and Sanghi Industries in the article without any specific reason.