(Bloomberg) -- CreditSights appeared to dial back on the severity of its concerns about billionaire Gautam Adani’s empire, having sparked controversy with a report calling it “deeply overleveraged.”
In a note published following a call with the conglomerate’s management, CreditSights cited elevated leverage at one unit and for another the risk of future acquisitions hurting its credit profile. But there was no mention of the word “deeply,” and the Fitch Group unit also corrected a profit and a debt figure for Adani Transmission Ltd. and Adani Power Ltd. respectively.
“These corrections did not change our investment recommendations,” the analysts including Pramod Shenoi wrote.
Under Adani, now world’s third-richest person, the group has rapidly diversified from its coal-based businesses to a myriad of non-related sectors including airports, data centers, digital services and media. Much of this growth has been fueled by debt.
The Adani Group says that the leverage ratios of its companies are healthy.
While the initial CreditSights report last month hurt the stock of Adani Enterprises, it has since rebounded. Shares in the flagship were up 0.3% in early trading in Mumbai on Thursday, while those in Adani Green climbed 0.5%.