RAJIV Jain, the GQG Partners Inc. chief investment officer surprised everyone last month when he went against the grain and purchased nearly $2 billion worth of Adani Group stock at a time when the stocks of Adani Group companies were seeing selloff in the wake of the US short-seller Hindenburg report.
Now, the GQG CIO has made a prediction for his $2 billion bet on the Gautam Adani-led Indian conglomerate - a return in excess of 100%.
Rajiv Jain, who is a renowned emerging markets investor has reportedly said in an interview at Bloomberg’s New York headquarters: “These could be multibaggers" over five years. The term multi-bagger was coined by Peter Lynch and refers to an equity stock which offers a return of over 100%.
The Adani Group has lost as high as $153 billion in market value after Hindenburg Research accused the Indian conglomerate of corporate malpractice in a report released on January 24, this year.
According to Jain, Adani Group’s value lies in its assets. Jain has specifically pointed to Adani’s coal mining assets, data centers and his majority stake in Mumbai’s busy international airport as indicators of a healthy business.
Meanwhile, on Wednesday (April 5), the Indian equity market resumed trading after a day’s holiday on account of Mahavir Jayanti. The Indian benchmark indices were slightly up during today’s intraday trading session. BSE was up 0.93% at 59,654.47 points, while Nifty was 0.81% higher at 17,539.30 points.
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Stocks of Adani Group companies including Adani Enterprises, Adani Green Energy, Adani Wilmar Ltd, and Adani Transmission Ltd traded in the red today.
The share price of Adani Enterprises was down 1.89% at Rs. 1,685 per share at 1:35 pm IST. Shares of Adani Green Energy slipped 4.76% at Rs. 797.55 per share. The share price of Adani Wilmar Ltd and Adani Transmission Ltd. was down 0.43%, and 5% respectively.