Aswath Damodaran values Adani Enterprises stock at ₹947 per share
Live MintAswath Damodaran feels the share price of Adani Enterprises was over stretched when it was valued at at $53 billion. In fact, a valuation of Adani Enterprises with upbeat assumptions on revenue growth and operating margins, and without factoring any of the Hindenburg accusations of fraud and malfeasance, yields a value of just about ₹945 per share, well below the stock price of ₹3,858 per share,” he said. Adani Enterprises stock price valuation by Aswath Damodaran “Even with the share price at 1,531 per share, I still think the company is priced too high, given its fundamentals and before factoring the damage that might have done to the company's reputation and long term value, by this short selling episode,” he added. This blog post by valuation guru Aswath Damodaran on Adani group and its flagship Adani Enterprises comes at a time when the group is facing the heat after US based short seller Hindenburg Research which accused the Adani Group of 'brazen stock manipulation and accounting fraud scheme over the course of decades.' “Adani Group has played fast and loose with exchange listing rules, that it has used intra-party transactions to make itself look more credit-worthy than it truly is and that even if it has not manipulated its stock price directly, it has used the surge in its market capitalization to its advantage, especially when raising fresh capital,” he said.