Aswath Damodaran- “The Dean of Valuation” passes verdict On Adanis

Aswath Damodaran- “The Dean of Valuation” passes verdict On Adanis

This Blog is our 2nd in series on Adanis’.  Our first blog on Adani group was published on October 21 2022 and was titled- “Valuations and Euphoria Called The Adanis”; wherein we shared the astronomical valuations at which Adani group companies were trading.

Who is Aswath Damodaran –

He is a professor of finance at the Stern School of Business New York where he teaches corporate finance and equity valuations. He is known as “Dean of Valuation” due to his expertise on the subject. He is widely quoted about valuation with great reputation as a teacher and the authority.

Hindenburg in his opinion have indulged in hyperbole when they chose to use the words “the Biggest Con in History “

He however thinks of Adani as a group who are obsessed with control. Now they might have flouted with exchange listing rules, used intra party transactions to make them look credit worthy or might have used surge in market cap to its advantage but it is not a Con.

If anything, the group is a very competent player in infrastructure play in India.  

For the hue and cry of retail investors losing huge money on Adani, he is skeptical of that statement as they make 2% of the shareholders.

The intrinsic value he assigns to Adani Enterprise share is at 948 and it would take significant discount below intrinsic value for him to be enticed to start biting into the stock.

Click on the Link below to listen and view the entire presentation-

# Disclaimer- The aim and objective of creating this Blog is to keep its readers abreast of latest happenings in Financial Markets. The Central idea is to disseminate information on Financial products, Market views of Experts, Recent trends in the financial industry, Business Related Information of Companies and under no circumstances should be construed as Advice. The Blog is not intended to be a recommendation to Buy, Sell or trade in any financial product and is created for educational purposes only.

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