Adani Enterprises, Adani Ports, Adani Wilmar: How Adani Group shares fared since the Hindenburg Research report

It’s been more than three weeks since the Hindenburg report came out and triggered a sell-off in Adani Group stocks. Adani Group has so far lost Rs 10 lakh crore m-cap. The total m-cap of the Adani group tanked to Rs 8.64 lakh crore on February 16, 2023, from Rs 19.20 lakh crore as on January 24, 2023.

Notably, some Adani Group stocks have managed to recover up to 85 per cent from their recent lows. However, some stocks have crashed up to 74 per cent after the report that came out on January 24, 2023. Also, All the 10 publicly-listed Adani stocks have been in focus lately as the companies reported their earnings for the quarter ended December 2022.

Also read: Down up to 71% since Hindenburg report: Which beaten-down Adani stock to buy post Q3 results

Now, in the recent development, the central government has prepared a list of names to be part of the expert committee, the formation of which was suggested by the Supreme Court to look into the fall of the conglomerate’s shares and recommend improvement in statutory and regulatory regimes.

Also read: Adani-Hindenburg row: Govt prepares list of names for expert committee

Let’s take a look at how these 10 Adani Group have fared since the Hindenburg research report:

Adani Enterprises

Shares of the flagship Adani group company have recovered over 77 per cent from its 52-week low of Rs 1,017.10. However, the stock is down over 48 per cent in the past 16 trading sessions till February 16, 2023.

Also read: Adani Enterprises shares cut gains after clarification; stock still up for 3rd straight day

The stock recovered after Adani Group Chairman Gautam Adani said the recent market volatility was temporary and, as a classical incubator, Adani Enterprises will continue to look at strategic opportunities to expand and grow.

ACC

Shares of ACC have recovered over 9 per cent from its 52-week low of Rs 1,696.05. The stock tanked 21 per cent to Rs 1841.35 on February 16 from Rs  2,336.20 on January 24, 2023.

Recently, MSCI reduced the free-float designations of four Adani group stocks but did not remove any of the stocks from its global indices. MSCI cut the free floats of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC, which had a combined 0.4 per cent weighting in the MSCI emerging markets index as of January 30.

Adani Total Gas

Shares of Adani Total Gas plummeted 74 per cent to Rs 1024.95 from Rs 3,885.45 on January 24, 2023. The stock fell sharply in Friday’s trade and slipped below Rs 1000 odd level, extending its fall for the 19th consecutive session.

Recently, the company reported a net profit of Rs 150 crore for the December quarter 2022, up 17 per cent from Rs 128 crore in the same quarter a year ago. Revenue from operations stood at Rs 1,185 crore in Q3 FY23, up 27 per cent from Rs 932 crore in Q3 FY22.

Adani Green Energy

Shares of Adani Green Energy are down over 68 per cent to Rs 616.45 from Rs 1,913.55 on January 24, 2023. However, the stock was trading in the positive territory in Friday’s trading session, snapping a 12-day losing streak, after a Reuters report suggested that the Adani group company has a refinancing plan, which it would disclose after the end of the ongoing financial year.

Also read: Adani Green Energy shares gain 4% on refinancing plan, snap 12-day losing run. Full details

An executive of the embattled group informed Adani Green’s bondholders on a call on Thursday, two sources with direct knowledge of the matter told Reuters.

Adani Transmission

Adani Transmission stock is down over 65 per cent since the Hindenburg report and over 77 per cent from its 52-week high of Rs 4,238.55.  It hit a new 52-week low of Rs 918.65 on Friday.

The company reported a 73 per cent jump in consolidated net profit at Rs 478 crore for the quarter ending December 31, 2022, as against Rs 267 crore in the year-ago period,  aided by a one-time income of Rs 240 crore from a regulatory order. The company’s revenue rose 16 per cent to Rs 3,037 crore in Q3FY23 as compared to Rs 2,623 crore in the year-ago period.

NDTV

Shares of NDTV have managed to recover 53 per cent from its recent low of Rs 135.25. The stock hit a 5 per cent upper circuit in Friday’s trading session and was trading at Rs 217.40.

Also read: Who sold NDTV shares to Adani at a discount to the market price?

The broadcaster’s consolidated net profit decreased to Rs 12.9 crore in the third quarter ended December 2022, from Rs 27.6 crore in the year-ago period. The drop was primarily due to lower consumption of advertisement inventory across news genres, NDTV said in a press release.

Adani Ports and Special Economic Zone Ltd

Shares of Adani Ports and SEZ have also managed to recover over 46 per cent from their 52-week low of Rs 394.95.

Recently, Credit Suisse upgraded the Adani Ports stock to Outperform from Neutral with a target of Rs 825 on attractive valuations and a strong earnings growth outlook.

A total of 21 analysts track Adani Ports, out of which 16 have strong buy ratings, four have buy ratings and one brokerage has a hold rating on the stock, as per publicly available data with Trendlyne. The average price target for this stock at Rs 1,145.

Ambuja Cements

Shares of Ambuja Cements tanked over 30 per cent to Rs 348 on February 16 from Rs 498.55.

According to Laxmikant Shukla, Technical Research Analyst, YES Securities, Ambuja Cement has plummeted from its swing high in the last few weeks on the back of negative news flows.

Also read: Ambuja Cements, Adani Ports shares out of ASM framework. This is what it means

“The sharp sell-off has dragged the scrip towards its multi-month support zone, near the 200-weekly moving average level. Going ahead, if the support zone of Rs 315-300 is respected, an oversold bounce shall be expected towards Rs 400-430 levels. Failing to do so may weaken the stock further and it can slip towards Rs 275-265 levels,” Shukla added.

Adani Wilmar

Adani Wilmar stock is up over 37 per cent from its 52-week low of Rs 305.40. Shares of this Adani Group company jumped 5 per cent to hit a day’s high of Rs 437.95 in Friday’s trading session.

Also read: Adani Ports, Adani Wilmar: 2 Adani group stocks to buy post selloff

KR Choksey said Adani Wilmar’s shares fell due to reports relating to the Group, but it believes that this is temporary. It added that the company may perform well because of strong and sustainable volume growth. The brokerage suggested a target of Rs 569 per share.

Adani Power

Shares of Adani Power plummeted 46 per cent to Rs 147.9 on February 16 from Rs 274.8 on January 24, 2023. However, the stock hit a 5 per cent upper circuit in Friday’s trading session.

Adani Power logged a 96% decline in consolidated net profit at Rs 9 crore for the December quarter compared with Rs 218 crore in the corresponding quarter of last year. Revenue from operations rose 45% year-on-year (YoY) to Rs 7,764 crore in Q3, due to greater regulatory claims, increased operating capacity, and improved tariff realisation.

According to Ravi Singh, Vice President and Head of Research, Share India, Adani Power shares are still under a trading freeze after a massive sell-off. The stock may witness more downward pressure once the freeze is open. In the current scenario, the stock price may slide lower up to the level of Rs 100 in the near term.