The Gautam Adani-owned conglomerate’s market capitalisation surged by over ₹1 lakh crore on Tuesday, marking the biggest one-day gain since the release of the scathing Hindenburg report on January 25 that alleged several wrongdoings by the group.
Adani Total Gas soared 20% – the highest tradable limit of the day. Adani Energy Solutions surged nearly 19%. Adani Power, Adani Green Energy, and NDTV jumped over 12% each.
Analysts, however, remain cautious on most of the group’s stocks even after the court’s observation.
“Market participants found solace after the apex court indicated that allegations in the report cannot be treated as ‘credible’ and raised hopes that the decision may come in favour of the Group going forward,” said Manish Chowdhury, head of research at StoxBox. “Though some stocks in Adani Group still look expensive from a valuation perspective, we remain positive on Adani Ports from a long-term perspective considering the economic-centric nature of the business, high entry barriers, and long-duration concessions to the business.”
Even after the recent surge, the group’s overall market value is yet to reach the levels seen before the Hindenburg report was released which triggered a collapse in the stock prices. The total market capitalisation of all 10 Adani Group stocks increased to ₹11.30 lakh crore on Tuesday but remains ₹7.91 lakh crore below the level seen on January 24. On January 27, the group lost more than ₹3.2 lakh crore in market capitalisation.
Shares of Adani Power and Adani Ports are the only two stocks that are trading above the prices seen on January 24.