Shares of Adani Total Gas have corrected over 77 per cent from its 52-week high of Rs 3,998.35. The stock has been in a downward trend since the Hindenburg report. It ended 5 per cent lower at Rs 925.10 on BSE on Monday. Market cap of the firm fell to Rs 1,01,743.43 crore.
Notably, the share price of Adani Total Gas was Rs 3,885.45 on January 24, 2023. All the 10 publicly-listed Adani stocks took a beating after US-based short seller Hindenburg Research released a report claiming Adani Group’s engagement in stock manipulation and accounting fraud scheme over the last few decades.
Recently, the global index provider MSCI said it will postpone the reduction of weights of two Adani group companies namely Adani Total Gas and Adani Transmission to its next index review in May.
Earlier, it 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 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.
“The biggest issue the group would face now and in the future would be fundraising. Growth will now depend on fundraising and I think it will be postponed for at least 18-24 months,” said independent market analyst Ambareesh Baliga.
“I don’t think anyone is questioning the business of the Adani group. Once the issue gets sorted out they will come back on track but it will take a while. Most of the stocks are still quite expensive,” Baliga added.
