All of Adani Group's seven listed companies' stocks declined further today after people familiar with the matter said the conglomerate has cut its revenue growth target by 50% and plans to postpone new capital expenditure in the aftermath of a bruising short seller attack by Hindenburg.
Gautam Adani¡¯s conglomerate has slashed its revenue growth target by 50% as the billionaire seeks to rebuild investor confidence nearly three weeks after the?Hindenburg research report came out and rattled the group¡¯s stocks and the billionaire¡¯s net worth.
The group will now aim for revenue growth of 15% to 20% for at least the next financial year, down from the 40% growth originally targeted, said the people, who didn¡¯t want to be named as the discussions are private. Capital expenditure plans will also be scaled down, they said, as the group prioritizes bolstering its financial health over aggressive expansion, as per Bloomberg report.?The group¡¯s plans are, however, still being reviewed and are set to be finalised in the next few weeks.
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Amidst the reports of Adani group slashing its revenue growth target by 50%, most Adani stocks are again bleeding today.
At the time of writing this report, Adani Enterprise was down 2.5%, Adani Green Energy,?Adani Transmission, Adani Power, Adani Wilmar and Adani Total Gas are all down 5% each, whereas Adani ports is down 2%.
This move shows how the Adani group is focused on conserving cash, repaying debt and retrieving pledged shares as it scrambles to undo the damage from a scathing report by Hindenburg Research on Jan. 24. Even though Adani Group denied the allegations of accounting fraud and stock manipulation levied by the American short seller, the scandal triggered a stock rout that has wiped more about $120 billion off the Adani empire¡¯s market value,as per Bloomberg report.
Holding back on investments for even as little as three months could save the conglomerate as much as $3 billion,¡ª funds that can be deployed to pay down debt or boost the cash pile, said another person.
Also Read:?Hindenburg Effect: Mukesh Ambani Replaces Gautam Adani As Richest Indian & Asian On Forbes List
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