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The Adani Group has accumulated debts of $30 billion as it became a central player in India's push to develop world-class infrastructure. The worry for analysts is how much of that debt has been secured with shares.   © EPA/Jiji
Market Spotlight

Adani retains astronomical valuation even after stock market rout

Indian conglomerate trades at higher price-earnings multiple than Apple or Amazon

SAYAN CHAKRABORTY, Nikkei staff writer | India

TOKYO -- In recent weeks, the financial world has been transfixed by the stock-market collapse of India's Adani Group. Following a scathing report by U.S. short seller Hindenburg Research, companies in Gautam Adani's conglomerate have lost around half their value -- more than $110 billion.

But even after the fall, Adani companies remain richly valued according to traditional stock-market measures, with price-to-earnings ratios that are far higher -- sometimes several times higher -- than many of India's or the world's most high-powered businesses.

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