Stocks in the huge empire of the controversial billionaire Gautam Adani surged for the fifth consecutive day. Thanks to NRI investor Rajiv Jain's Rs 15,000 crore stake, which helped bulls ignore Hindenburg allegations.
Adani Enterprises, the Adani's flagship company, led the pack in gains as the Nifty stock increased 10% to reach a new high for the day of Rs 2,067.25.
Continuous surge
On Saturday, it was seen that in the last four trading days, Adani Enterprises rallied with a massive jump of 57.5%.
Among the 10 Adani stocks, six were in the 5% higher circuit limit: NDTV, Adani Green, Adani Wilmar, Adani Total Gas, Adani Power, and Adani Transmission.
The remaining 3 Adani stocks were also in the green zone. The biggest boost to crisis-ridden Adani stocks came from a Rs 15,446 crore investment in four group companies by Jain's $92 billion fund GQG Partners, as reported by the Economic Times.
The market capitalization of Adani stocks increased by roughly Rs 50,000 crore today to surpass Rs 9 lakh crore due to the rally.
After-effect of GQG deal
At a share price of Rs 1,410.86, GQG purchased 3.4% of Adani Enterprises, 4.1% of Adani Ports, 2.5% of Adani Transmission, and 3.5% of Adani Green Energy. It also purchased 4.1% of Adani Enterprises at a share price of Rs 596.2.
According to analysts, the price at which the FII purchased these stocks has now turned into a short-term bottom for the respective shares.
Jain called the Adani firms' ownership of the airport, port, and energy assets "fantastic," "irreplaceable," and affordably priced. Although his team had been constantly monitoring Adani Companies for five years, the valuations were in "no man's territory," and the investment opportunity was suddenly more appealing due to the stock market crash.
According to Jain
Jain claimed that his investment in Adani equities is a multi-year wager since he believes that the Ahmedabad-based business will have a minimum 20-year earnings visibility.
"The recent events made it very-very attractive in general, and the other aspect is that the group itself from a fundamental bottom-up perspective is better positioned," Jain said, adding that a classic PE type of valuation is not relevant for Adani companies at this stage.
The overall market value of Adani stocks has decreased by more than half since the Hindenburg report's release in late January.
The Supreme Court has established a committee to look into the matter, and it has also instructed SEBI to wrap up its ongoing investigation within the next two months.
