I'd like to start off just by asking what you make of these allegations from
the short seller. Thank you, David, for having me on the
show. Firstly, I think the the short selling
itself is not new to India. Right.
And secondly, obviously Hindenburg has a ISE and they have a position on the
stock down there without terrible allegations themselves are not new.
That data points which they have pulled out.
Many of them are known to markets. Many of them can be easily verified by
other investors. But of course, there are allegations
it's tough to make out or verify. Many of the allegations which wars, some
of which go 20 years into the past, has died down a group for growing too fast,
too soon or in the last few years. Yes, two years have been probably the
largest group in India warning the flow or rather acquiring global
infrastructure assets in India. Yes.
So these are all verifiable things. One thing is for sure that the stock
market capitalization is very high relative to watch valuation is in the
eyes of the beholder. So for sales these days, we have
companies without earnings also getting that billion dollar valuation.
So from that perspective, it's not me. But our armies have real assets.
That's one thing for sure. So, sure, let me then ask you, Adani
Enterprises, you mentioned that valuation is in the eye or values in the
eye of the beholder. You're almost paying 100 times earnings
on the stock itself. Do you think that sheep are expensive?
Now, as I see it in the eyes of the bit there, there are companies that do not
even know their need staring at unicorn lovers and that Beyond the Bell is out
for market capitalization. So so for all.
But I mean, stocks have very free no free float.
So that probably is one important factor which drives the stock price.
And we don't know for sure, for sure as to what exactly is the valuation.
But unfortunately, when compared to other comparables in the marketplace,
there's a more expensive from A just a B, multiple from other metrics.
So compared to other fields in the market.
So you run when you look at what the Hindenburg has been saying, you know,
you can argue is any smoke without fire here.
But of course, we don't know enough about this yet.
But tell me something. What about from a governance
perspective, do you think that all the checks and balances are correct in
actually supervising this company here, which has seen its share price up?
What's something like fifteen hundred percent since the start of 2020?
No. See?
Well, we always believe any company or a group has always scoping to go down on
his schedule, better on ESD. Are called out on ISE get probably of
the big four ISE RTX farms for sure. So there are there is definitely scope
for improvement and there is a scope to reach out to investors and tech right
somethings. They don't have a list correctly.
So for sure there is some merit to what you Dani Burger saying.
But some of the data points are available to investors and some of these
allegations are small. These are like for companies that
foreign shareholding shareholding patterns except having not only the
market place. And so we have all while most investors
knowing. But it is tough to read and play some
other allegations that the Hindenburg report makes for third party investors.
Well, absolutely, they talk about shell companies, it's about money laundering,
they took about the siphoning and Shery Ahn.
Do you see that from just what is available in the public domain?
Any red flags? Oh, it does.
Don't you see the red flags with respect to.
Well, probably the related party transactions, things are linking by many
of the group companies. Oh, is to possibly.
The quality of the audit forms statutory auditors.
So there is definitely scope to improve. Could not only do better on New Year's
Eve front reporting on large infrastructure assets.
Right. So definitely they could enhance their
ESG profile. So that's a I would think,
a work in progress for the group itself and all they need to do more in
restaurant region. And that's that.
Provide the last press conference on exports.
Sure, a final question on our screens right now, where we're showing our
viewers here a measure of, I guess, the liquidity and the ability of the company
really to meet some of these short term obligations.
This is one of the things that Hindenburg research actually put out
that said some of these ratios are below 1.
What I want to get to is a bigger question really related to this is, is
the group overly level or overly leverage is there's too much debt within
all these companies combined? Oh, yes, I know.
See, much of that debt is supported by cash flows, right?
I mean, not only Forbes is a cash generating this one, and most of these
companies have little monopolistic characteristics.
So even a small increase in prices would probably result in huge cash flows.
And like, I don't know about that. All right.
I agree. Not new enterprises.
That turns into a sort of groundbreaking in front of the company.
So I think within a few yards or so, they should be also generating cash.
But the supporting use of only ports and the transmission and power which have
one of ballistic characteristics or market pricing is very easy for me to
sort of supplement it until is this field, which is a Paul Allen public
offering to diversify its own investor base and to generate cash to pay off
some of their debt. So financials can sell off some equity
to reduce eliminate limited foreshore. Shery Ahn.
You know, nepotism is never really something which has gone away in India.
Tell us how. Perhaps.
Mr. Mr.
Dani's closeness to Mr Modi. How much of this proximity to the
government there is responsible for the great fortune that he does have?
No, it's no secret that doesn't miss out on his growth has also
been out mean with the current dispensation, so to say Mr.
Modi and the government. For sure about
one part of it has been just beyond me. Because of that, we don't know that time
in. Your guess is as good as mine.
But definitely the growth has been poor. That must be the current dispensation.