Aswath Damodaran, professor of finance at the Stern School of Business at NYU and valuation guru, said in his latest blog that the Adani Group has three times as much debt as it should, confirming that the group is overleveraged. Damodaran, however, said this is a bad business practice, not a con.
He said there is little, if any, benefit in terms of value added to Adani from using debt, and significant downside risk, unless the debt is being subsidised by someone. That, he said, could be the government, sloppy bankers and green bondholders.
