Three Adani Group stocks hit the upper circuit on Thursday, April 6, 2023. The rise comes as the Gautam Adani-led conglomerate aims to boost group-level operating earnings by nearly 50% to around Rs 91,000 crore over the next two fiscal years.
Adani officials have reportedly outlined plans to lower the group’s leverage ratio from 4.2 times now to 3.1 by the end of FY24, and assuage the concerns of investors and creditors to whom it owes around $23 billion.
Adani Green Energy, Adani Transmission and Adani Total Gas stocks hit upper circuit of 5% on Thursday. Adani Enterprises, Adani Ports, Adani Power, and Adani Wilmar stocks were also trading in green.
The rise in Adani stocks comes after reports of an Adani Group JV with EdgeConneX reportedly talking with about half a dozen banks for a loan of about $220 million, which would be the conglomerate's first offshore borrowing since the Hindenburg Research report.
Rajiv Jain, CIO of US-based boutique investment firm GQG Partners, who invested Rs 15,446 crore in four Adani Group firms, recently said he believes the Adani stocks "could be multibaggers" over five years.
Rajiv Jain, who bought almost $2 billion worth of Adani Group stock last month, sees the bet on the Indian conglomerate delivering a return in excess of 100%. “These could be multibaggers over five years,” said Jain in a Bloomberg interview.
The Florida-based firm GQG Partners has become the highest-profile champion of the battered Adani empire, which lost as much as $153 billion in market value after a US short-seller accused the conglomerate of stock-price manipulation and fraud in a report released in January.
Rajiv Jain's firm oversees more than $900 billion. The company's most high-profile bet of the year was the acquisition of shares in four of Adani's firms.
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