Adani Group Emerges as the Most Attractive Corporate Entity in India: Nomura Insights

Mumbai, Dec 9 (NationPress) The Adani Portfolio of companies is viewed as the 'most attractive' among Indian corporates, based on insights from Japanese brokerage Nomura, which indicates that other Indian corporates are trading at 'expensive levels' relative to the Group companies.

In a recent report, the international brokerage stated that this ports-to-power conglomerate is well-positioned to endure the recent challenges stemming from the allegations made in an indictment by the US Department of Justice (DoJ).

According to the report, 'the Adani complex appears most attractive among other investment grade (IG) corporates from India. Other Indian IG corporates remain at expensive levels compared to the Adani complex.'

Nomura further noted that in contrast to the Adani-Hindenburg situation from early 2023, 'Adani Group’s liquidity management has significantly improved, allowing it to weather the storm with a robust short-term liquidity position.'

The report emphasized that there are no indications of stress observed within the Adani Group, and its fundamentals and asset quality continue to be strong.

'We believe the group should be able to navigate through this round of challenges,' commented the financial research firm.

Regarding the cessation of financial support from global banks to Adani companies, Nomura anticipates that this will not pose a significant issue once the allegations related to the DoJ are resolved. 'Separately, the big three Japanese banks intend to maintain their relationship with the Adani group.'

Nomura pointed out that the DoJ indictment is merely an allegation, referencing Adani Management, which states that this does not represent a violation of anti-corruption agreements. A breach could only be established if found guilty.

Nomura did caution that 'global banks may pause new financings in the short term but are expected to gradually resume them in the long term as the Adani-DoJ situation stabilizes.'

'Additionally, the Big Three Japanese banks plan to continue their partnership with the Adani Group,' it added, referring to MUFG, SMBC, and Mizuho.

Nomura anticipates an increase in bond prices for Adani Green Energy Ltd., Adani Ports and Special Economic Zone Ltd., Adani International Container Terminal, Adani Electricity Mumbai Ltd., Adani T-One Transmission Ltd., and Adani Renewable Energy Ltd.

For Adani Green Energy, the projected price increase could reach 7 points, while others could see rises between 2 to 4 points, according to the report.