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Bernstein says Adani overhang easing after US developments
Brokerage Bernstein says the overhang on Adani Group stocks has eased after a US SEC settlement and prosecutors moving to drop charges. Many global funds had stayed away pending clarity, leaving several…
The Story in Brief
Brokerage Bernstein says the overhang on Adani Group stocks has eased after a US SEC settlement and prosecutors moving to drop charges. Many global funds had stayed away pending clarity, leaving several stocks under-owned despite strong operational execution, Bernstein said in a report covering Adani Ports, Adani Green, Adani Power and Ambuja Cements.
Bernstein noted that the group's execution prowess is 'never debated' and that it remains important for India's infrastructure. Net group debt has risen by roughly Rs 1 lakh crore since September 2024 due to capex, but earnings growth remains strong with EBITDA compounding at 22 per cent between FY23 and FY26. Pledged shares have declined sharply, and bond yields have eased below Indian five-year government bond yields.
The Indian Opinion
The Bernstein report is being read as a clean chit, but the numbers tell a mixed story. Net debt-to-EBITDA has climbed to 3.9 times from 2.7 times during the US turmoil, and stocks still trade below pre-crisis levels despite the recovery. The real test will be whether dollar funding actually resumes and if foreign funds return in size, not just a single brokerage's upgrade. Watch Adani Green's next bond issuance and its yield spread over Indian G-secs.
Source: millenniumpost.in
This story was synthesised by AI from the source linked above.
