Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History (Hindenburg Research)

[matt4]

@robert1981 Not a financial advisor, but do research some of the funds that have avoided any Adani stock, while having a focused set of funds and not trying turn every passive ETF into a fund. PPFAS have generally done well with all their funds while sticking to value investing

 

[medifast1]

@robert1981 There are many (0% stake in Adani Port, Ambuja etc.)

1. HDFC Sensex Index
   
2. Mirae House funds like Mirae Midcap
3. Canara Robeco like Small Cap
4. Parag Parikh like Tax Saver

 

[sauiyt2]

@matt4 If I am not wrong, their stock manipulation involves fudging their balance sheets and order book. So how are you concluding their Price/Earning ratio is sane?

 

[matt4]

@sauiyt2 I only mean sane as in its around 25-30 PE while PE for say Adani green is out of the orbit, something like 500

As alleged in the report, one of the main ways they are manipulating is via free float - Hindenburg says only 5% of these Adani companies' shares are freely floating in the market, rest of it is locked up in shell companies tied to Adani.. Using low float, the stocks can be easily pumped up and then Adani engages in selling his stake at artificially inflated prices via PE funds, further rounds (FPO), demergers etc

 

[sauiyt2]

@matt4 Refer Part3 of the report

Part 3: Adani Group’s Corporate Maze

At that point, the capital can be used to engineer Adani’s accounting, whether by bolstering its reported profit or cash flows, or cushioning its capital balances in order to make listed entities appear more solvent or creditworthy

You are correct. But I was specifically referring to this. Does your own research contradict this?