Mumbai– Adani Group stocks remained resilient on Tuesday, brushing off a recent Wall Street Journal report that alleged U.S. authorities are scrutinizing the conglomerate for potential violations of Iran sanctions.
Despite the headline, investors appeared largely unfazed. The Adani Group’s total market capitalization slipped just 1.8 percent—modestly more than the Nifty’s 0.7 percent drop. Shares of Adani Enterprises declined by 1.9 percent, while ACC edged down only 0.3 percent.
The Adani Group swiftly rejected the WSJ report, calling it “baseless and mischievous.” Market analysts noted that investors increasingly view such international reports as targeted attacks, particularly given Adani’s growing role in India’s energy infrastructure and security.
Over the past two years, Adani has demonstrated steady financial performance with over 25 percent profit growth and investments totaling ₹1.75 lakh crore (approximately $21 billion), even amid global economic volatility. The group has also significantly reduced its leverage, with a net debt-to-EBITDA ratio now at 2.5x—among the lowest in the global infrastructure sector.
The market’s calm response mirrors earlier reactions to major challenges, including the January 2023 Hindenburg Research allegations and a November 2024 U.S. Department of Justice indictment. Neither incident derailed the group’s operations or fundraising efforts, particularly in the green energy sector.
It’s also worth noting that WSJ journalist Ben Foldy, who authored the recent report, has previously expressed interest in writing a book about Hindenburg Research and has covered several of its high-profile targets. Hindenburg, for its part, has a track record of targeting companies involved in clean energy, including Adani.
The continued investor confidence in Adani reflects not only the group’s strong fundamentals but also its strategic importance to India’s long-term development goals. (Source: IANS)
