Adani Flagship Is the Next Big India Pick for Singapore’s Helios

9(gidtluilvjh5}xrsoxlyar_media_dl_1.png Bloomberg

Article content

(Bloomberg) — Helios Capital Management is betting on the flagship stock of India’s Adani Group to be the next big winner for its funds in a market left behind in the global AI frenzy. 

Article content

The Singapore‑based asset manager bought about 770,000 shares of Adani Enterprises Ltd. in the second quarter across three of its funds, two of which were first-time buyers, Bloomberg-compiled data show.

Article content

Article content

Article content

The easing of Adani’s legal and reputational overhang and the group’s businesses in ports and emerging energy ventures strengthen the case for further investment, Samir Arora, founder of Helios, said in a recent interview. 

Article content

Article content

“We have always liked their execution; we own Adani Ports & Special Economic Zone, so we know that,” said Arora, whose 75.8 billion rupees ($795 million) Helios Flexi Cap Fund has returned about 8% in the last year to beat 91% of its peers. The Nifty 500 TR has fallen 0.7% during the period. 

Article content

His backing of the coal‑to‑ports conglomerate underscores the momentum Adani has gained recently after reaching a US settlement over sanctions-related charges and resolving corruption allegations. Helios joins other investors, such as the Capital Group and SBI Funds Management, in raising stakes in Adani just as it emerges as a key proxy for India’s artificial intelligence ambitions.

Article content

Leveraging its extensive energy assets, Adani plans to invest about $100 billion in data centers and digital expansion. With India lacking a strong domestic semiconductor base, global and local investors are looking at these second‑order infrastructure plays, fueling sharp rallies in Adani’s energy stocks.

Article content

Article content

As AI reshapes the tech landscape, Helios’ funds exited early from some of its historically largest exposures such as Indian software services. Disruption from AI has made the software sector a difficult investment, he said, though he remains bullish on a few names. 

Article content

Food delivery firm Eternal Ltd. and One 97 Communications Ltd., the owner of Paytm, are among some other stocks Arora is bullish on.

Article content

He is also sanguine about India’s broader outlook, noting that major headwinds are receding. Oil prices are stabilizing, while rupee weakness may ease on anticipated foreign inflows, particularly into bonds, he said. 

Article content

The fund has rotated more into financials, capital goods, defense, power infrastructure, electronic manufacturing services and consumer firms, he said.

Article content

“There are two or three reasons why people didn’t like India, and all of them are going away,” he said. 

Article content