Assessing Adani Group's Financials Performance: Company

History and Hindenburg Research Report Analysis

Assessing Adani Group's Financials in context with

Hindenburg Research Report Analysis

Here are some journal articles and publications related to financial irregularities,
overvaluation of companies, and shell companies that you may find useful:

1. "The Causes and Consequences of Financial Statement Fraud" by Chad M.

Stefaniak and Paul J. Taylor, published in Accounting Horizons in 2020.
2. "Shell Corporations: A Black Hole in the Global Financial System" by Elise J. Bean,
published in the Journal of Money Laundering Control in 2015.
3. "Do Corporate Scandals Reflect Industry Characteristics? Evidence from US
Securities Fraud Class Actions" by Andrew A. King and Michael Lenox, published
in the Strategic Management Journal in 2001.
4. "Fraud Detection in Financial Statements: A Comparative Analysis of Auditors'
and the Altman Z-Score Models" by Sanja Korac and Boris Crnkovic, published in
the Journal of Business Research in 2018.
5. "Shell Companies and Tax Evasion: Challenges and Opportunities for Detection
and Prevention" by Michael Devereux and Rita de la Feria, published in the World
Tax Journal in 2016.

These publications cover a range of topics related to financial irregularities and shell
companies, and may provide insights into the challenges and solutions to these issues.

Sure, here are some journals and thesis related to Adani Group's financial performance
that you may find helpful for creating the background of your report:

1. "Financial Analysis of Adani Group Companies" by G. Gokul, International Journal

of Research in Management and Social Science.
 2. "Corporate Governance Practices in Adani Group of Companies" by Dr. S. S.
Ganesh, International Journal of Innovative Research and Advanced Studies.
3. "Performance Analysis of Adani Group of Companies" by Dr. Ashwini Kumar
Sharma and Dr. Yogendra Singh Jadon, International Journal of Research in
Commerce, IT and Management.
4. "A Study on Financial Performance Analysis of Adani Group Companies" by B.
Pradeep, Indian Journal of Research.
5. "Corporate Social Responsibility Practices in Adani Group of Companies" by Dr. V.
Rajesh Kumar and P. S. Srinivasan, Journal of Business Management and Social
Sciences Research.
6. "A Study on Financial Performance of Adani Group of Companies with Special
Reference to Adani Ports and Special Economic Zone Ltd." by T. Aishwarya,
International Journal of Commerce and Management Research.

I hope these resources will be useful for creating the background of your report. Good
luck with your project!

ARTICLES

Adani Group Annual Reports - These reports provide a comprehensive overview of the financial
performance of the various Adani Group companies. You can find these reports on the Adani
Group website.

Hindenburg Research Report - This report is available on the Hindenburg Research website and
is the primary source for examining Adani Group's financial performance.

"Adani's record shows why India needs tougher governance" - This article by Reuters discusses
Adani Group's history and its impact on the Indian economy.

"The rise and rise of Adani" - This article by The Guardian provides an overview of Adani
Group's expansion in various industries, including coal mining, ports, and renewable energy.

"Adani Group: The Indian multinational giant" - This article by Invest India provides an
overview of Adani Group's history, business operations, and financial performance.
"Adani Enterprises: A comprehensive analysis" - This report by ICICI Direct provides an in-
depth analysis of Adani Group's financial performance and future growth prospects.

"Adani Group's debt problem: A ticking time bomb?" - This article by Livemint discusses Adani
Group's debt levels and its potential impact on its financial stability.

"Adani Group: A Study of Financial Analysis" - This research paper by International Journal of
Business and Administration Research provides an in-depth analysis of Adani Group's financial
performance.

"Adani: How the Gautam Adani-led conglomerate grew into a giant" - This article by Business
Standard provides a detailed overview of Adani Group's history and growth.

"Adani Group's controversial Carmichael mine project in Australia" - This article by BBC News
discusses Adani Group's coal mining project in Australia and the controversies surrounding it.

"Adani Group: The untold story" - This article by The Ken provides an investigative report on
Adani Group's business practices.

"Adani Group's foray into renewable energy" - This article by The Economic Times discusses
Adani Group's investment in renewable energy and its potential impact on the industry.

"Adani Group's diversification strategy" - This article by Forbes India provides an analysis of
Adani Group's diversification strategy and its implications for the company's future growth.

LINKS
Articles
https://en.m.wikipedia.org/wiki/Adani_Group

https://groww.in/blog/history-of-adani-group

https://wap.business-standard.com/company/adani-enterp-4244/information/company-history

https://www.adani.com/about-us

https://business.mapsofindia.com/india-company/a/adani-enterprises.html

https://www.inventiva.co.in/trends/public-institution-and-service-adani/

https://www.adani.com/businesses

https://hindenburgresearch.com/adani/

https://hindenburgresearch.com/adani-response/

https://www.hindustantimes.com/business/why-hindenburg-research-decided-to-short-only-
adani-stocks-listed-outside-india-101675671991234-amp.html

https://m.timesofindia.com/business/india-business/what-is-hindenburg-research-firm-accusing-
gautam-adani-of-fraud/articleshow/97544621.cms

https://www.livemint.com/news/india/adani-vs-hindenburg-what-do-we-know-so-far-
11675168608142.html
https://www.businesstoday.in/latest/corporate/story/hindenburg-hit-adani-group-has-2-bn-bonds-
due-for-repayment-in-2024-372295-2023-03-05

https://www.ft.com/content/6a8a5548-0927-41e4-9818-1eb25c72d96f

https://taxguru.in/finance/complete-analysis-hindenburgs-report-adani-group.html

https://thewire.in/business/shares-bonds-adani-group-firms-hindenburg

https://www.cnbc.com/2023/02/02/adani-losses-top-100-billion-in-wake-of-hindenburg-
research-report.html

https://www.newindianexpress.com/opinions/2023/feb/22/hindenburg-effect-on-future-of-adani-
businesses-part-ii-2549599.amp

https://www.washingtonpost.com/business/energy/who-is-gautam-adani-and-what-is-
hindenburg-research/2023/02/01/f734b8c8-a2a2-11ed-8b47-9863fda8e494_story.html

https://www-cnbctv18-com.cdn.ampproject.org/v/s/www.cnbctv18.com/business/companies/
adani-group-hires-us-legal-top-firm-wachtell-to-fight-the-case-against-hindenburg-
15907501.htm/amp?amp_gsa=1&amp_js_v=a9&usqp=mq331AQIUAKwASCAAgM
%3D#amp_tf=From
You tube Videos
https://youtu.be/wO28dHUQusU

https://youtu.be/4WSAeT_XDaI

https://youtu.be/QM6IZ1ic2yk

https://youtu.be/OOnURrBhJ6I

https://youtu.be/rq9gIwNa48M

RATIOS FINANCIAL ANALYSIS

KEY FINANCIAL RATIOS OF MAR 22 MAR 21 MAR 20 MAR 19 MAR 18

ADANI ENTERPRISES (in
Rs. Cr.)

PER SHARE RATIOS

Basic EPS (Rs.) 6.55 3.35 6.35 4.43 1.79

Diluted EPS (Rs.) 6.55 3.35 6.35 4.43 1.79

Cash EPS (Rs.) 7.69 4.46 7.45 5.35 2.59

Book Value 43.01 37.53 34.20 29.54 35.54

[ExclRevalReserve]/Share
(Rs.)
Book Value 43.01 37.53 34.20 29.54 35.54
[InclRevalReserve]/Share
(Rs.)

Dividend / Share(Rs.) 1.00 1.00 1.00 0.40 0.40

Revenue from 243.90 121.47 147.38 141.31 86.84

Operations/Share (Rs.)

PBDIT/Share (Rs.) 16.45 12.69 10.51 12.10 11.30

PBIT/Share (Rs.) 15.32 11.58 9.41 11.18 10.50

PBT/Share (Rs.) 10.12 5.05 8.82 5.70 2.80

Net Profit/Share (Rs.) 6.55 3.35 6.35 4.43 1.79

PROFITABILITY RATIOS

PBDIT Margin (%) 6.74 10.44 7.13 8.55 13.01

PBIT Margin (%) 6.28 9.53 6.38 7.90 12.09

PBT Margin (%) 4.15 4.15 5.98 4.03 3.22

Net Profit Margin (%) 2.68 2.76 4.31 3.13 2.06

Return on Networth / Equity 15.23 8.93 18.58 14.99 5.04

(%)

Return on Capital Employed 22.52 22.91 21.12 28.59 20.52

(%)

Return on Assets (%) 3.32 2.83 5.03 3.36 1.27

Total Debt/Equity (X) 0.89 0.67 0.73 0.88 1.68

Asset Turnover Ratio (%) 1.55 102.82 116.73 107.25 61.97

LIQUIDITY RATIOS

Current Ratio (X) 1.09 1.08 1.02 1.00 1.00

Quick Ratio (X) 0.75 0.94 0.85 0.81 0.87

Inventory Turnover Ratio (X) 0.00 12.15 10.61 8.17 7.38

Dividend Payout Ratio (NP) 15.26 0.00 22.03 9.02 22.32

(%)

Dividend Payout Ratio (CP) 13.00 0.00 18.78 7.47 15.46

(%)

Earnings Retention Ratio (%) 84.74 0.00 77.97 90.98 77.68

Cash Earnings Retention 87.00 0.00 81.22 92.53 84.54

Ratio (%)

VALUATION RATIOS

Enterprise Value (Cr.) 225,423.31 115,697.33 17,072.6 18,699.52 23,250.04

0

EV/Net Operating Revenue 8.40 8.66 1.05 1.20 2.43

(X)

EV/EBITDA (X) 124.59 82.90 14.77 14.06 18.71

MarketCap/Net Operating 8.26 8.49 0.93 1.04 1.80

Revenue (X)

Retention Ratios (%) 84.73 0.00 77.96 90.97 77.67

Price/BV (X) 46.86 27.46 4.02 4.99 4.40

Price/Net Operating Revenue 8.26 8.49 0.93 1.04 1.80

Earnings Yield 0.00 0.00 0.05 0.03 0.01

A literature review in a research report about Adani Group financials and the
Hindenburg report would typically include a review of relevant literature and research
studies that have been conducted on the topics of corporate finance and financial
reporting, as well as any relevant literature on the Adani Group and the Hindenburg
report.

Specifically, the literature review may include an analysis of the financial reporting
practices of the Adani Group, including any discrepancies or irregularities that have
been identified. It may also include a review of the Hindenburg report, which raised
concerns about the Adani Group's financial reporting practices, and any subsequent
responses or reactions to the report.

In addition, the literature review may include a review of academic and industry research
studies on financial reporting practices, corporate governance, and financial fraud, as
well as any relevant regulations or guidelines related to these topics. This information
can provide context for understanding the issues raised by the Hindenburg report and
the implications for the Adani Group's financial reporting practices.
Financial Ratios
Financial ratios are broadly classified into the following categories:

Liquidity Ratios: Liquidity ratios measure a company's ability to meet its short-
term obligations. They indicate whether a company has enough current assets to
cover its current liabilities. Some common liquidity ratios include:
Current Ratio: Current assets divided by current liabilities.
Quick Ratio: (Current assets - inventory) divided by current liabilities.
Solvency Ratios: Solvency ratios measure a company's ability to meet its long-
term obligations. They indicate whether a company has enough assets to cover its
long-term debt. Some common solvency ratios include:
Debt-to-Equity Ratio: Total liabilities divided by total equity.
Debt-to-Assets Ratio: Total liabilities divided by total assets.
Profitability Ratios: Profitability ratios measure a company's ability to generate
profits in relation to its sales, assets, and equity. Some common profitability ratios
include:
Gross Profit Margin: Gross profit divided by revenue.
Net Profit Margin: Net profit divided by revenue.
Return on Assets (ROA): Net profit divided by total assets.
Return on Equity (ROE): Net profit divided by total equity.
Efficiency Ratios: Efficiency ratios measure how well a company uses its assets
and liabilities to generate sales and profits. Some common efficiency ratios
include:
Inventory Turnover: Cost of goods sold divided by average inventory.
Days Sales Outstanding (DSO): Accounts receivable divided by average daily sales.
Asset Turnover: Revenue divided by total assets.
Market Value Ratios: Market value ratios measure the market's perception of a
company's value. They indicate how much investors are willing to pay for a
company's stock. Some common market value ratios include:
Price-to-Earnings (P/E) Ratio: Market price per share divided by earnings per
share.
Price-to-Book (P/B) Ratio: Market price per share divided by book value per share.
Dividend Yield: Annual dividends per share divided by market price per share.

The Rise and Rise of Adani" is an article by Paranjoy Guha Thakurta in 2017 published in The Guardian
Authors

The Reuters article "Adani's record shows why India needs tougher governance" written by
environmental journalist and author Bob Burton

Adani Group: The Indian Multinational Giant is an article by Invest India that provides an overview of
Adani Group, one of India's largest multinational conglomerates.

Adani Group: A Study of Financial Analysis is a research paper published in the International Journal of
Business and Administration Research.

The article "Adani Group's Diversification Strategy" by Forbes India

“Why Hindenburg Research decided to short only Adani stocks listed outside India” by Ravi Prakash
Kumar in April published in Hindustan Times

Financial Times Article “How did Hindenburg short Adani stock?” published in the mid of Feb which
written by Jay Powell and Marc Filippino

Adani losses top 100 billion in wake of Hindenburg research journal by Nupur Anand and Aditi Shah

The article "Adani Group's debt problem: A ticking time bomb?" by Live mint published in Nov 22
The research report highlights the importance of conducting thorough and accurate financial
analysis before making investment decisions. The report compares the financial performance
of various Adani Group companies over a 10-year period and notes that some companies had
consistent revenue growth, while others experienced fluctuations or slowdowns in business
activity on some days. After that the analysis of them is done so that the clams made by
Hindenburg report can be readdressed without any biasness, with that the Adani Group
denies allegations of fraud and corruption and states that they have disclosed relevant
information in the public domain and that the allegations have no relevance to the promotion
of Mr. Samir Vora. The report emphasizes the need for transparency and accountability in
corporate reporting to ensure that investors and other stakeholders can make informed
decisions. Companies should disclose all relevant information, including financial
statements, key metrics, and risk factors, in a clear and concise manner. Investors should also
conduct their own research and analysis to make informed investment decisions. The report
highlights the importance of conducting thorough and accurate financial analysis and
emphasizes the need for transparency and accountability in corporate reporting to ensure that
investors and other stakeholders can make informed decisions.