The stock of GQG Partners fell 13% on December 02 on the Australian Stock Exchange. GQG Partners’ share price got triggered after an analyst downgraded the rating for having direct exposure to Adani Group companies.
UBS analysts estimated that the firm could have lost 600 million Australian Dollars ($390 million) in funds under management following the Adani Group indictment. UBS downgraded the rating on the company to “Neutral” from “Buy”. It also slashed the target price of the stock to Aus $2.30 from A$3.30 per share.
Last Saturday, Gautam Adani, the chairman of Adani Group made a public statement on the US indictment for the first time and said, “As most of you would have read less than 2 weeks back, we faced a set of allegations from the US about compliance practises at Adani Green Energy. This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger and every obstacle becomes a stepping stone.”
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The Adani Group stocks have now stabilised in trade and are trading significantly above their recent lows. However, these stocks also saw a knee-jerk reaction and recorded the sharpest decline since the Hindenburg controversy on account of the US indictment. Nearly Rs 2.2 lakh crore loss in market cap. Adani Enterprises plunged 23%, while Adani Ports dropped 14%. Due to this, GQG Partners, holding stakes between 1.5- 2% in six Adani companies as of September 2024, also came under scrutiny.
Motilal Oswal on Adani Ports and SEZ
According to Motilal Oswal, the brokerage firm, Adani Ports is likely to outpace India’s overall growth, driven by a balanced port mix along India’s western and eastern coastlines and a diversified cargo mix. The company continues to invest heavily in the port and logistics business to drive growth.
“We expect ADSEZ (Adani Ports) to report 10% growth in cargo volumes over FY24-27.
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