Shares of Adani Total Gas on Thursday fell sharply amid highly volatile trade, extending their fall for the 18th consecutive session. The stock today slumped 5 per cent to settle at its lower circuit of Rs 1,024.95 against a previous close of Rs 1,078.85. During intraday deals, the counter touched its upper price band of 5 per cent, at Rs 1,132.75, before settling in the red. The scrip declined 9.52 per cent from its upper circuit of Rs 1,132.75. Adani Total Gas has dwindled by 73.84 per cent in 18 straight days.
On the earnings front, the company reported a consolidated net profit of Rs 150 crore for the December quarter (Q3 FY23), up 17 per cent from Rs 128 crore in the same quarter a year ago. Revenue from operations came at Rs 1,185 crore in Q3 FY23, up 27 per cent from Rs 932 crore in Q3 FY22.
A technical analyst suggested that support on the counter could be seen at Rs 1,022. “Adani Total Gas has strong resistance of Rs 1,281 on the daily charts. Investors should buy only if it closes above mentioned resistance level for targets of Rs 1,683-1,982 in the near term. Support will be at Rs 1,022,” said AR Ramachandran from Tips2trades.
The stock traded lower than the 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 10.54. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 236.66.
That said, Adani Total has an average target price of Rs 3,475, Trendlyne data showed, suggesting a potential upside of 239.82 per cent. The scrip has a one-year beta of 1.37, indicating high volatility.
US-based index provider MSCI today said it would postpone the implementation of updates to weightings for two of the Adani Group companies, Adani Total Gas and Adani Transmission, to the May benchmark review. The reversal of the updates to Adani Total and Adani Transmission in the February review would be reflected in the MSCI Index Product files starting from February 16, it stated.
Since January 24, Adani stocks took a major hit after US-based short seller Hindenburg Research alleged that the Gautam Adani-led Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.
Adani Total Gas is a joint venture between France’s energy major Total and Adani Group.
Meanwhile, Indian equity benchmarks settled with mild gains today as losses in banks and financials countered gains in technology and metal stocks. The 30-share BSE Sensex pack rose 44 points or 0.07 per cent to settle at 61,320; while the broader NSE Nifty index moved 20 points or 0.11 per cent higher to finish at 18,036.
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