Nomura Highlights Adani Group’s Strength Amid Market Volatilityes

In its latest report, Nomura has identified the Adani Group as one of the most attractive investment-grade (IG) corporate entities from India, outperforming peers in terms of valuation and stability. While other Indian IG corporates remain expensive, the Adani complex presents a comparatively appealing opportunity.

The report acknowledged significant improvements in the Adani Group’s liquidity management since the Hindenburg controversy in early 2023, stating that the conglomerate now demonstrates a robust short-term liquidity position, enabling it to navigate turbulent conditions effectively. Nomura added that the group’s fundamentals and asset quality remain solid, with no visible signs of stress across its operations.

However, Nomura cautioned that global banks might temporarily halt new financing for the Adani Group due to ongoing investigations by the U.S. Department of Justice (DOJ). Despite this, long-term financing is expected to resume once the situation stabilizes. Notably, Japan’s Big Three banks—MUFG, SMBC, and Mizuho—have expressed their commitment to maintaining their relationship with the Adani Group.

Nomura’s insights underline the group’s resilience and its ability to adapt, securing its position as a reliable player in India’s corporate landscape.

Nomura in a report released this week stated “Adani complex looks most attractive amongst other IG corporates from India. Other Indian IG corporates stay at expensive levels vis a vis Adani complex”

— Nomura further commented that “Compared with Adani-Hindenburg episode in early 2023, Adani group’s liquidity management awareness has improved meaningfully and should be able to weather the rainstorm with adequate short-term liquidity position”

— Nomura added “Overall, no signs of stress across the Group, Fundamentals/asset quality remain intact”

— Nomura did caution that “Global banks might halt new financings in the short-term but should gradually resume in the long-term when the dust of the Adani-DOJ saga settles. Separately, big three Japanese banks plan to continue their relationship with Adani group”. The Big Three Japanese banks refer to MUFG, SMBC, Mizuho.

— Nomura further clarified that “Access to financing channels in

Indian HY Corporates: Adani Complex;