Adani US Case: Madhusudan Kela, Abhay Agarwal, GQG Partners Double Down On Group Stocks

The supposed indictment news of the key personnel of the Adani Group late last week brought about a sharp correction in the stocks, only for the stocks to move higher Wednesday onwards, after Adani Green Energy Ltd. refuted the bribery allegations made against its key executives. The US Department of Justice and the nation's market regulator Securities and Exchange Commission had levelled the allegations against its Founder and Chairman, Gautam Adani, his nephew Sagar Adani, and the Managing Director and Chief Executive Officer of Adani Green Energy Ltd., Vneet Jaain.

Adani Green Energy Ltd. stated in an exchange filing on Nov. 27 that the reported charges were incorrect and the DoJ indictment does not include these three Adani officials in any corruption or bribery counts.

NDTV Profit spoke to and read through a number of investors on what would their investment outlook be on the group stocks. Here's a summation of some of the key voices, alongside the views of global investing giant GQG Partners.

Madhusudan Kela

(Photo source: Madhusudan Kela's Official LinkedIn Handle)

I am a big believer in the man, Gautam Adani and the capabilities of him and the group. They have built a very strong set of businesses, which are not easy to replicate. For all of these reasons, I am invested in the stocks of the group and I have bought more in the recent correction. These (US DoJ) kind of events will happen, but I don't see the reason for this kind of panic in the stock prices. As they came through in Hindenburg, they will get through this saga much stronger.

Abhay Agarwal

Abhay Agarwal, founder at Piper Serica Pvt. (Photo: Piper Serica website)

This Group exemplifies good execution and financial strength. The Hindenburg issue is done and dusted already. But coming to the next five years, I do not see anybody else in the country having the wherewithal to build large projects across the infrastructure space. The group is ahead of the curve on this aspect, took the pain of execution early on and is now reaping the benefits of that early. They have the size and wherewithal to defend against the attacks launched by powerful forces. These attacks are actually a sign of success.

GQG Partners

As the facts currently stand on Nov. 21, we do not see these actions as having a material impact on these businesses. These businesses operate critical infrastructure regulated by the Indian government. In most cases, these are services with long-term contractual revenues. We believe the fundamentals of the companies we are invested in remain sound.

Disclaimer: NDTV Profit is a subsidiary of AMG Media Networks Limited, an Adani Group Company.