Adani Group’s market capitalisation has fallen over 60% in the past one month, moving near Hindenburg Research’s target of 85% downside. The US-based short-seller published a report on January 24, named ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History’, which led to the downfall of Adani Group stocks. Gautam Adani-led group’s market capitalisation has tumbled to Rs 7.15 lakh crore at the time of writing this report, as compared to Rs 19.18 lakh crore on January 24, with the loss totalling Rs 12.02 lakh crore.
Adani group stocks mcap: Which share lost how much value
Hindenburg accused the Adani family of stock manipulation and money laundering and said that its 7 key listed companies have an 85% downside purely on a fundamental basis owing to sky-high valuation. Some of the stocks, such as Adani Green Energy, Adani Total Gas and Adani Transmission have plunged over 70% while the flagship Adani Enterprises shares have lost over 60%. Adani Power has crashed by 46% and Adani Ports, Adani Wilmar, ACC and Ambuja Cements have fallen over 25%. On Friday, the group’s four stocks, Adani Power, Adani Transmission, Adani Green Energy and Adani Total Gas were locked in the lower circuit, falling 5% while Adani Enterprises shares fell 7.68% to Rs 1277.40.
Adani Enterprises strong support placed at Rs 1017
“Technically, Adani Enterprises has strong support at Rs 1017 on the Daily charts. Only if the Daily close is above Rs 1560, Adani Enterprises could move back up to Rs 1900-2100,” said A R Ramachandran from Tips2trades.
Adani Group stocks extremely risky for retail investors
“We believe that trying to bottom fish in Adani Group stocks for retail investors is extremely risky and they should avoid it. If you look at the price action of F&O stocks like Ambuja Cements, ACC, Adani Enterprises and Adani Ports. They are trading above their recent lows that were formed on February 3. This low is likely to act as a major support for them. For the cash, segment traded stocks like – Adani Green, Adani Transmission etc. It is a one-way race to the south. Most of the cash segment traded stocks continue to trade on lower circuits. We believe that one must stay away from such stocks right now and wait until a solid base is formed,” said Apurva Sheth, Head of Market Perspectives & Research, SAMCO Securities.
Dark clouds ahead of the Adani group
“The dark clouds are ahead of the Adani group as they have revised their growth downwards in the near term and put a hold on their CAPEX plans. With macro factors still worrisome across the globe, it will be a difficult task for the Group to grow which had commanded a premium valuation in the past,” said Manish Chowdhury head of research at Stoxbox.