Mumbai, June 3 (IANS). Investors on Tuesday ignored the Wall Street Journal (WSJ) report stating that a new investigation could begin in the US for the possible violation of sanctions of Adani Group on Iran. Shares of Adani Group showed strength and the group’s market capitalization declined by just 1.8 percent while the Nifty fell by 0.7 percent.
Adani Enterprises saw a decline of 1.9 percent, while the ACC fell by only 0.3 percent.
Adani Group immediately dismissed the report as “baseless and mischievous”. Analysts believe that the market is rapidly reducing such external pressures and seeing them as a target attacks on the important role of Adani in India’s energy security.
Despite several negative campaigns by global media, short-selers and regulatory bodies, Adani’s performance and investment plans remain unaffected. Global investors remain interested in the group.
In the last two years, Adani Group’s profits have increased by more than 25 percent and have invested Rs 1.75 lakh crore (21 billion) even amidst instability. Apart from this expansion, there has been a significant decrease in the company’s loan and its net debt vs. EBITDA ratio has come down to 2.5 times. It is one of the best figures of companies working in the infra sector.
The previous major challenges, including the January 2023 Hindenburg Research Report and the November 2024’s Prosecution (before collecting the Green Energy Fund) (before collecting the Green Energy Fund), have similarly failed to disrupt the progress of the group.
It is noteworthy that the WSJ reporter, Ben Foldie, has publicly expressed interest in writing a book on Hindonburg Research and has helped to increase his goals before. Hindenberg itself has a history of targeting green energy companies including Adani.
The constant confidence of the market in Adani underlines its strong fundamentals, its strategic importance for the country and certified ability to remove external challenges.
-IANS
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