Adani Group stocks experienced a sharp decline on Tuesday after most of the group’s stocks reached 52-week highs in the previous session. This drop followed a general downturn in the Indian markets, spurred by early election trends indicating a tighter result than exit polls had suggested. The losses on Tuesday wiped out the gains from the previous day.
In intra-day trading, Adani Total Gas saw the steepest fall, dropping 18.5 percent to a low of ₹912.05. Adani Green Energy followed closely, declining 18.3 percent to ₹1,664.95. Adani Energy Solutions fell 14.2 percent to ₹1,048.70, and Adani Power decreased by 13.6 percent to ₹756.
Other significant declines included Adani Enterprises, Adani Ports, and Adani Wilmar, each losing 10 percent. Adani Ports and Adani Wilmar fell to ₹1,428.90 and ₹322.20, respectively, while Adani Enterprises dropped to ₹3,280.85 after reaching a 52-week high the previous day.
Among other stocks, NDTV dropped 13 percent, Ambuja Cements contracted 9.9 percent, and ACC lost 9.1 percent in intra-day trading.
The combined market capitalization of all 10 listed Adani stocks decreased by nearly ₹1.35 lakh crore, bringing the total market value of the conglomerate’s listed entities to ₹18.07 lakh crore, down from ₹19.42 lakh crore in the previous session.
On Monday, the market cap of all Adani Group firms exceeded ₹20 lakh crore for the first time, surpassing the ₹19.20 lakh crore at the close on January 24, 2023, when Hindenburg’s report was published. However, this milestone was not sustained in Tuesday’s session.
According to a recent Jefferies report, the Adani Group has rebounded from the losses incurred during the Hindenburg episode and is now on an “expansion spree,” with plans for $90 billion in capital expenditure over the next decade.
In January of the previous year, U.S. short-seller Hindenburg released a critical report on the Adani Group, alleging accounting fraud, stock price manipulation, and improper use of tax havens. The Adani Group has consistently denied these allegations. Despite the denials, the stocks were significantly impacted as investor concerns grew.
During the financial year 2023–24, the Adani Group focused on reducing its debt and the founders’ share pledge, according to the Jefferies report. The group’s profit after tax (PAT) in FY24 jumped 55 percent to ₹30,768 crore.
The report also highlighted that the group’s net debt remained stable at ₹2.2 lakh crore in 2023–24, compared to ₹2.3 lakh crore the previous year.
Jefferies has given a ‘buy’ rating to three group stocks: Adani Enterprises (target price: ₹3,800), Adani Ports (target price: ₹1,640), and Adani Energy Solutions (target price: ₹1,365).
Adani Enterprises is scaling its manufacturing capacity towards starting green hydrogen production by 2026–27, and the Navi Mumbai Airport is expected to be commissioned by the fourth quarter of FY 2024–25. Adani Ports’ performance has been boosted by the new dedicated freight corridor at Mundra, with significant logistics potential driving growth.
For Adani Energy Solutions, the brokerage highlighted strategic debt management, noting efforts to refinance debt at fixed rates aligned with the asset’s life.
Disclaimer: The views and recommendations mentioned above are those of individual analysts or broking companies and not of LegalParivar. Investors are advised to consult with certified experts before making any investment decisions.
