Short-Sell Call on Adani Stocks Puts 2,500% Rally to the Test
- Adani stocks have high earnings multiples compared to peers
- A partner at North of South says valuations have to normalize
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A short-seller report is drawing attention to the multifold gains of the Adani Group of stocks — a potential blow to the empire of Asia’s richest man and the personal wealth he has amassed.
The conglomerate’s stocks figure among the most expensive names in Asia by several measures, including the closely-watched earnings multiples and price-to-book value. What’s more, the flagship company Adani Enterprises Ltd. has jumped about 2,500% in the last five years, trumping even the likes of Elon Musk’s Tesla Inc.