Not every allegation against Adani should automatically be seen as a chance to buy their stocks. It really depends on the situation. Let’s break this down.
Take the recent US bribery allegations in November 2024. When the news broke, Adani stocks tanked—some fell as much as 23% in one day. The total market value dropped by Rs 2.6 lakh crore, which is massive. But then, just a week later, they started bouncing back. Adani Green Energy, for example, didn’t just recover—it regained all its losses in seven trading days and even went up to Rs 1,445 by December 2, 2024. The entire group added Rs 1.7 lakh crore in market value during the same week. So, clearly, some investors saw the drop as a buying opportunity, and it paid off for them.
Now, this isn’t the first time we’ve seen this. Remember the Hindenburg report in January 2023? That was brutal. The group’s market value crashed by 65% in just five weeks, going from Rs 19.2 lakh crore to Rs 6.7 lakh crore. Gautam Adani dropped from being the second-richest person in the world to somewhere below 25th. But guess what? By late 2024, many of those stocks had recovered quite a bit. This pattern of sharp drops followed by recoveries is why some people keep buying during the dips.
But it’s not all sunshine and rainbows. You have to think about the risks. Adani is under the microscope with these allegations, and legal or regulatory decisions could still hurt them in the future.
On the flip side, Adani has a lot of institutional backing. Big investors like GQG Partners and IHC have stayed supportive, and the group itself claims it’s financially strong and has enough liquidity to handle issues. Still, the volatility of these stocks is no joke. They can swing wildly, which makes them risky, especially if you’re looking for short-term gains.
Let’s look at the numbers for a minute. Adani Enterprises was at Rs 2,467.05 on December 2, 2024. That’s not far from its 52-week low of Rs 2,025, and a long way off its high of Rs 3,743.9. It’s clear that while some recovery has happened, there’s still a lot of ground to cover for some of these stocks.
So, should you buy every time there’s a dip? Honestly, it depends. If you have the stomach for high-risk, high-reward situations and can afford to wait, maybe. But if you’re someone who panics easily or is looking for quick gains, Adani stocks might not be the best fit for you. Diversifying your portfolio and not putting all your money into volatile stocks like these is probably a smart move. In the end, it’s about balancing opportunity with risk—and only you can decide what works for you.