Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Vivek

Vivek Shah  |60 Answers  |Ask -

Financial Planner - Answered on Feb 27, 2023

Vivek Shah is a SEBI registered investment advisor and certified financial planner from FPSB India. He has over 18 years of experience in financial planning.
Shah founded Finrise, a financial planning and wealth management firm, in 2011. He believes that equity investment is the only way to generate long term wealth.
He has an MBA in finance, a degree in chartered accountancy and is a registered life planner from Kinder Institute of Life Planning, USA.... more
Banibrata Question by Banibrata on Feb 24, 2023Hindi
Listen
Money

Is it good to buy Adani Power now?

Ans: Hello Banibrata,

First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.


Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Vivek

Vivek Shah  |60 Answers  |Ask -

Financial Planner - Answered on Feb 24, 2023

Listen
Money
is it wise to enter adani green energy now
Ans: Hello Sashi,

First of all we need to understand the questions being asked by Hindenberg and try to evaluate whether the allegation made by them makes any sense. If anyone goes through the Hindenberg report than the allegations and questions asked can be bifurcated into below broad categories:

1) Violations of Exchange and listed rules
2) Dubious Intra- Party Transactions
3) Use of Shell companies outside india ( Mauritius) to manuipulate the stock price
4) Money laundering through private Adani companies in listed companies of Adani inorder to look Balance sheet good.
5) Inexperienced Chartered accountants to audit the companies.
6) Using stocks as collateral for debt.

Looking at this points and also the allegations done by Hindenberg, i am fine to believe that there few acts which they taken for granted and manipulate the exchange and listing rules but calling Adani company as CON or Fraud is not what i would call this company. Companies margin are very low as compared to their cost of capital but being an infrastructure led company its takes long gestation period to realise the cash flows. Adani is playing important role in building infrasturcture in India with ports, power, airports etc and even though company is highly levered to build the assets and cash flow, the company has good physical assets in the balance sheet. Even though it may not a investible company for a retail invstor with the sort of volatility and margins they are earning.

Valuations are very much stretch with last 2 years price going to the roof. As a retail investor, one should avoid this company due to many uncertainties going forward.


Disclaimer: This is just for educational purpose and this should not be taken as advise for buy or sell.

..Read more

Latest Questions
Inderpaul

Inderpaul Singh  |36 Answers  |Ask -

Leadership Coach - Answered on Feb 26, 2025

Asked by Anonymous - Feb 25, 2025Hindi
Listen
Career
Hi. I am a BITS pilani graduate (2017) but i haven't achieved massive success when compared to my peers. I am preparing of UPSC for past 3 years along with my job, hoping to crack UPSC in 2025 or 2026. I am ashamed to meet my juniors and seniors of my college. Do you think by cracking upsc my fortunes will change and have a reputation among the alumni?
Ans: Hello
The real success is being at peace with oneself. This may sound bit philosophical but it is a profound stuff.
Unfortunately our societal orientation has so strongly imbibed the outside-in approach for most aspects of our life while it should be exactly opposite i.e. inside-out. To simplify, real success is not about meeting benchmarks set by someone else rather striving for leading a wholesome life as per own yardsticks wherein material/career elements are only one part of it. It is not to demean/undervalue something but assigning equal/appropriate weightage to all aspects of what makes us alive - health, family, relationships, sharing/caring etc. hence there is absolute no reason for you to feel ashamed merely basis some perceived/incomplete notions. Yes we should continue to strive for enhancements in life in all areas but do it for personal satisfaction and not for others hence there is no reason to feel stressed rather our goals if set right should energize us & give us a larger purpose in life.
Therefore look at things from a larger prism & not merely to gain some 'random perceived gains' that will again be shor-tlived.
All the Best!!
Major Inderpaul
HR Expert, Career & Relationship Coach

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x