Market Experts Sound Alarm On Adani Group Stocks. Here's Why?

#businessnews #adanifraud #adanigroup #adanistocks #stockmarketanalysis
Adani Group Stocks Under Fire: Should You Invest or Stay Away? Expert Insights by Dharmesh Kant & CA Rudra Murthy. The Adani Group has once again found itself embroiled in controversy, this time over bribery allegations brought forth by a US District Court verdict. Unlike previous allegations from research houses, this case comes with a legal ruling, raising alarm bells among investors and market experts alike. The situation has further escalated with reports of Indian government actions potentially impacting the group’s businesses. Market experts Dharmesh Kant, Head of Equity Research at Chola Securities, and CA Rudra Murthy, Research Head at Vachana Investments, have shared their insights on whether this is the right time to consider investing in Adani Group stocks. Dharmesh Kant highlights the seriousness of the allegations, noting that this time, it’s not just speculative accusations but a legal verdict that could have far-reaching consequences. He points out that corporate governance is a critical issue for global markets, and any breach can lead to significant challenges in regaining trust. He warns that businesses linked to the Adani Group may face operational difficulties, including cancelled orders and partnerships. Despite certain businesses like Adani Ports and Adani Power having intrinsic value, Dharmesh Kant advises investors to stay away from Adani stocks due to the overall uncertainty and potential risks to existing operations. CA Rudra Murthy takes a valuation-based approach, focusing on the sharp correction in Adani stocks like Adani Green. Despite a 50% decline in prices, he highlights that the trailing P/E ratio for Adani Green remains at an unsustainable 120 times. He questions whether such high valuations can justify the stock’s performance, especially on a large base. He strongly advises investors against buying Adani stocks, even at these corrected levels, as the growth required to justify current valuations is highly improbable. For him, the answer is a definitive no.

If you’re an investor wondering whether the Adani Group’s challenges present a buying opportunity or a red flag, this discussion provides valuable insights. Watch Business Today TV’s latest stock market special for an in-depth analysis and actionable advice to safeguard your portfolio.

#investmentadvice #briberyallegations #corporategovernance #adanigreenenergy #adanicontroversy #investingtips
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