Rajiv Jain, the founder of GQG Partners, has confidence in Adani group’s assets and management, and their investors were not surprised by their investments in Adani group companies. Jain believes that these are remarkable assets managed by competent promoters and conducted due diligence to alleviate investor concerns. GQG Partners examined where these businesses would be in five years and looked at price-to-earnings ratios four to five years down the line. Jain believes that many of the allegations made in the Hindenburg report were not substantive, and he noted that Adani’s infrastructure projects’ execution was substantial, with low maintenance capital expenditures. Jain believes that Adani needs to continue growing and not to change anything to please the market. GQG Partners historically owned high multiple stocks, and he believed that controversy was how investors obtained better returns.
Rajiv Jain of GQG Partners confident in Adani group’s assets
According to Rajiv Jain, the founder of GQG Partners, their investors were not surprised by their investments in the Adani group companies as they believe these are remarkable assets managed by competent promoters. He claimed that they had conducted their due diligence to alleviate investor concerns, and he did not consider Adani a risky bet.
Jain emphasized that GQG Partners examined where these businesses would be in five years and looked at price-to-earnings ratios four to five years down the line. He stated that their job was to worry about everything, and their due diligence included speaking to former regulators, who never mentioned any fraud, and bankers.
Jain noted that Adani’s infrastructure projects’ execution was substantial, and their maintenance capital expenditures were very low. He said that they were evaluating how these assets would perform in five years. They met with some of Adani group’s management through brokerage firm Jefferies, and he believes that the company needs to continue growing.
Regarding the allegations made in the Hindenburg report, Jain stated that GQG Partners historically owned high multiple stocks, and he believed that many of the allegations were not substantive. He said that “the vast majority [of allegations] are not substantive” and that “lot of the allegations being made are totally fluff.”
Jain’s message to Adani group was to continue growing and not to change anything to please the market. He was confident in their investments, and he believed that controversy was how investors obtained better returns.
Key takeaways:
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Rajiv Jain, founder of GQG Partners, has confidence in Adani group’s assets and management.
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Jain claimed that their investors were not surprised by their investments in Adani group companies.
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GQG Partners examined where these businesses would be in five years and looked at price-to-earnings ratios four to five years down the line.
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Jain believes that many of the allegations made in the Hindenburg report were not substantive.
-
He noted that Adani’s infrastructure projects’ execution was substantial, and their maintenance capital expenditures were very low.
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Jain believes that Adani needs to continue growing and not to change anything to please the market.
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