Leading investment firm GQG Partners has recently expressed its unwavering faith in the Adani Group. The firm believes that the group’s fundamental businesses remain strong and recent challenges are unlikely to have a significant impact on future prospects.
In a recent statement, GQG Partners acknowledged the difference between individual allegations and corporate performance. The firm emphasised the ongoing investigations and reaffirmed its confidence in the group’s future.
Drawing parallels with other global companies that have faced similar regulatory scrutiny, GQG Partners highlighted the protracted nature of such investigations and the possibility of different outcomes. The firm also expressed optimism over the Indian government’s continued support for Gautam Adani, who is a key player in the country’s infrastructure development.
Adani Group’s CFO, Jugesinder Singh, has repeatedly claimed the innocence of the group’s companies. The group itself has termed the allegations as baseless.
GQG Partners, one of the early investors in the Adani Group, further strengthened its position by buying additional shares following the Hindenburg report. As of September 2023, the firm held a stake of 1.5% to 2% in six Adani Group companies.
The investment firm clarified that the actions by the US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) were focused on individuals and specifically related to Adani Green Energy (AGEL). Acknowledging the severity of the allegations, GQG Partners cited examples of many global companies, including some of the world’s largest companies, facing similar regulatory challenges.
Despite recent market volatility, GQG Partners believes investors have made a distinction between individual allegations and corporate performance. The firm is optimistic about the long-term growth path of the Adani Group.
The recent financial results of the Adani Group further reinforce this optimism. The Group recorded a 17% year-on-year growth in TTM EBITDA, reaching $10 billion, and a CAGR of 30% in funds from operations (FFO) over the last five years.
