ADANI’S AGNIPARIKSHA

One should not declare the Adani Group guilty as yet. They have to be givena chance to respond. But the Hindenburg report has reminded the world of what people had been whispering, if not openly talking, about

- Ruhail Amin

IF ONE THOUGHT TESLA had the most meteoric valuation rise amongst all global stocks, think thrice. That honour would be Adani’s. Over 33x in 3 years. Despite the pandemic panic. Despite the natural challenge of resources being finite. Despite the street talk that their yet-in-build-mode industrial and commodities play needing outcomes-yet-to-be-proven. Despite lapping up almost every 2nd large new business opportunity for a developed-India to be. Despite entering into newer businesses faster than management consultants can even finish their advisory reports, or the regulations even fully drafted for those sectors. Simply because the markets felt that the group had clout in Delhi.

It won’t be amiss to say that Adani has a part to play, in executing a large part of Indian growth story, especially in its infrastructure needs. It is not just Adani’s ability to dream big that merits his rise to success. Political patronage solely cannot be the success driver either. It sure could be a catalyst. One must understand that his execution capability to bring his plans to fruition is phenomenal. It was even a macho street talk amongst retail investors, that Adani closed a recent M&A transaction, without even the perfunctory due diligence, and the proud logic being that the company bought was an Indian subsidiary of a MNC, and its accounts would be in order. Hence the time saved & cost incurred on DD was better off, to be spent in quicker turnaround. Whether it was a fact or myth, such was his magic on the investor street, until few days ago.