After tracking Adani group stocks for five years, NRI investor Rajiv Jain seems to finally be enjoying the fruits of patience.
Not only did Rajiv Jain, who is the co-founder of asset management firm GQG Partners, invest Rs 15,446 crore into four Adani group companies despite the Hindenburg allegations, but he even made a mammoth Rs 3,100 crore profit from this.
The market value of Jain's investment in 4 Adani stocks - Adani Enterprises, Adani Ports and Special Economic Zone, Adani Green Energy, and Adani Transmission - has gone up to Rs 18,548 crore. This translates to a notional profit of Rs 3,102 crore.
Jain bought shares of Adani Enterprises at a price of Rs 1,410.86 on Thursday in the block deal. Since then, the stock price has gone up 33%, giving him a profit of Rs 1,813 crore on the Nifty stock.
Similarly, Adani Ports was bought at a price of Rs 596.2, Adani Green Energy at Rs 504.6 and Adani Transmission at Rs 668.4, as per ET.
Jain described the airport, port and energy assets owned by Adani companies as “fantastic,” “irreplaceable” and available at a good price.
Also Read:?Most Mutual Funds Have Stayed Away From?Adani?Group's?Stocks
Recalling a previous incident, Jain said “In 1996, I remember there was a crisis in ITC because of a tax situation. I bought into ITC and we ended up owning ITC for almost 20-plus years. So crisis usually creates opportunities. But to be clear, I've got some crises dead wrong.
For example, we, I was very nervous after the demonetization and boy, was I wrong in terms of what happened after that.”
He added “In 2019, we bought into Infosys when there was a whistleblower case, if you remember. That is not that long ago. The stock had dropped drastically right then by around 30-45%. People forget.”
Stocks belonging to the Adani group have been riding high since last week, especially after NRI investor Rajiv Jain's over Rs 15,000 crore bet helped bulls forget Hindenburg allegations.
Adani group's flagship firm Adani Enterprises is up 11% today (at the time of writing this report) and over 87% up in last five days, Adani green energy and Adani Total Gas are each up 5% today, and over 34% and 20% in last five days respectively.?
Similarly, Adani Transmission is up 5% today and over 31% in the last five days, Adani ports is up 2.5% today and over 26% up in the last five days, Adani power and Adani Wilmar are each up 5% today and over 34% in last five days.?
Adani's have fantastic assets "at an attractive price", Jain had told Australian Financial Review after multiple block deals with the Adani Group last week.
GQG Partners picked up stake in Adani Ports and Special Economic Zone Limited, Adani Green Energy Limited, Adani Transmission Limited and the flagship Adani Enterprises Limited, in a series of secondary block trade transactions.
Jain is confident that the investment would prove to be a sound trade. “About 25 percent of India’s air traffic passes through their (Adani) airports and 25 to 40 percent of India’s cargo volume goes through their ports,” he told AFR, as per Moneycontrol, report.
“Adani Green Energy is by far the fastest and the largest private sector green energy company in India. They’re rolling out almost 3 gigawatts annually. So, I think some of their assets are fantastic.”
Also Read:?Meet Nathan Anderson, The Man Behind?Hindenburg?Report
“They have their view, and we have ours, and we happen to disagree with their view, but that’s what makes a market,” Jain said regarding Hindenburg research's allegations on the Adani group.
“A lot of governments have come and gone in that period. Frauds typically don’t last 30 years – three months, three years, maybe, but not 30 years."
Rajiv Jain's GQG Partners has picked up stake in the Adani companies in two funds:? Emerging Markets Equity Fund and International Opportunities Fund.
As of December end, Emerging Markets Equity Fund had ITC (6.5 percent of total portfolio), Housing Development Finance Corporation (5.1 percent), Mukesh Ambani's Reliance Industries (4.2 percent), ICICI Bank (2.9 percent) and State Bank of India (2.8 percent) in its top 10 holdings.
Indian companies make for 34 percent of the GQG emerging markets fund.
The International Opportunities Fund, which is run in partnership with Goldman Sachs, has only one Indian company in its top 10 holdings - HDFC. It has 7.8 percent exposure to Indian companies.
According to Bloomberg, one can find lots of industries with a 'decidedly 20th-century feel' in Jain's portfolio, like oil, tobacco, banking. In 2022, when most funds crashed, three of GQG's four flagship funds beat benchmark indices by wide margins.
Also Read:?17 Companies Against Which Hindenburg Research Alleged Frauds Before Rattling Adani Group
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