Adani Group stocks- A look at how they fared in past one year

Adani Group stocks: A look at how they fared in past one year

The Adani Group stocks have had a rollercoaster ride since the start of the year. As the year comes to a close. Here is a look at how the stocks have performed thus far in 2023. In a late January report, US-based short seller Hindenburg Research accused the Adani Group of accounting fraud, stock price manipulation, and improper use of tax havens. This led to a significant stock market downturn for the Adani group shares, wiping out close to $150 billion in market value at its lowest point.

The impact was widespread across all Adani Group company stocks, following responses from PIL petitioners involved in the Adani-Hindenburg row to the capital markets regulator Sebi’s status report on the Adani probe. In an affidavit, the petitioners leveled charges of inaction, conflict of interest, and dilution of regulations against Sebi. This has witnessed a downfall of almost 50% in the last one year.

Adani Enterprises:

Adani Enterprises faced challenges with negative returns of 6.41% one month and a notable drop of 46.44% over the past year. However, its exceptional long-term performance, with a 3-year return of 683.83% and a 5-year return of 1209.30%, underscores growth potential within its sector.

Adani Ports & SEZ:

Adani Ports & SEZ, in recent one-month returns, the company has given positive returns of 3%. Also, the six-month returns are positive, with a six-month return of 8.22% and impressive long-term returns, with a 3-year return of 128.2% and a 5-year return of 115.97%, emphasizing growth within port operations and logistics.

Adani Wilmar:

Adani Wilmar faced recent challenges with a negative 4% one-month drop and a significant -29.69% decline in the last six months. While data on its 3-year and 5-year performance is unavailable, the notable one-year decline of -51.03% prompts considerations for investors in the FMCG food and beverage sector.

Adani Green Energy:

Adani Green Energy, despite a negative 6.56% one-month dip and a substantial drop 56.4% over the past year, showcases impressive long-term potential with a 5-year return of 18.50%, particularly in the renewable energy sector.

Adani Energy Solutions:

Adani Energy Solutions faces recent challenges with a negative 1.43% one-month decrease and a substantial drop of 18.99% over the past year. However, its long-term returns include a negative 5-year return of 17.8%, which may still attract interest from investors in the power transmission sector.

Adani Total Gas:

Adani Total Gas, despite a drop of 7.55% in one-month and a substantial drop of 85.57% decline over the past year, presents impressive long-term potential with a 5-year return of 47.21%, making it noteworthy for investors in the gas distribution sector.

Analyst Speak on the Group:

“Adani Group stocks have witnessed a steep decline of nearly 50% over the past year, primarily due to the fallout from the Hindenburg Research report in January 2023, which accused the group of financial irregularities and asset overvaluation. This report sparked a massive sell-off, shaking investor confidence. Further exacerbating the situation, Indian regulators, including SEBI, initiated investigations into the group’s financial practices, intensifying the negative sentiment,” said Sonam Srivastava, Fund Manager at Wright Research.

Srivastava also said that the global market’s volatility, characterized by rising interest rates and recession fears, has led to a broader risk-averse attitude among investors, impacting Adani stocks. Concerns over the group’s substantial debt have also played a significant role, as investors worry about its ability to manage debt obligations amidst declining stock values. Moreover, challenges within India’s infrastructure sector, where Adani is a key player, have contributed to the downturn. These combined factors have significantly dented Adani Group’s stock prices and investor trust over the last year.