Nomura’s latest report has highlighted the resilience of the Adani Group, naming it “the most attractive” among Indian investment-grade companies, despite recent challenges. 

The report comes amid the ongoing turbulence caused by allegations from the US Department of Justice (DoJ).

Adani’s strong liquidity management is a key factor in this positive outlook. Nomura notes that the conglomerate has improved its financial awareness since the 2022 Hindenburg report, ensuring the group is in a stable position to handle these challenges. 

With asset quality intact and no signs of distress, Nomura believes the group is well-equipped to weather the storm.

While global banks have temporarily paused their financial support, Nomura anticipates this to be a short-term issue. As the U.S. Department of Justice issue unfolds, the brokerage expects banks to resume backing the Adani Group.

Looking ahead, Nomura forecasts a rise in Adani Group’s bond prices. Adani Green Energy, in particular, is expected to see an increase of up to 7 points, with other subsidiaries like Adani Ports and Adani Electricity Mumbai Ltd. also poised for growth.

Despite the ongoing allegations, Adani Group has strongly refuted the claims. The company clarified that key figures, including Gautam and Sagar Adani, were not named in relation to the bribery charges. Adani maintains that these allegations are baseless and anticipates a resolution soon.

Overall, while the group faces temporary setbacks, Nomura’s outlook suggests that Adani Group’s long-term prospects remain strong, making it an appealing investment option for the future.