Why Adanis Stock is Still Overpriced
Adani Stock in Perspective: PE today is 94. Before the Hindenburg report it was > 254. Valuation Guru- @AswathDamodaran highlights his view on Adani stock . According to him, the stock is overpriced even after the Hindenburg report impact. He values the stock for Rs 947. On Jan 1, 2023, the stock was trading at Rs 3858 and PE around 254. Today the stock is trading at Rs 1719 and a PE of 94. Background: Adani Group which was established in 1984 has become a conglomerate of infrastructure companies in sectors like airports, shipping, logistics, power generation (solar), and defence. It's well established that infrastructure companies are about high volume and low margin, where with ageing returns get better, unlike telecom where returns diminish with ageing. While the Adani group had an astronomical rise from 2021 onwards where revenue grew by 112.70%, its margins were low at 3.4%, which is on the lower side as compared to other companies in this sector. Adani group has bui