Adani stocks add to gains, regain Rs 49,000 cr in mcap

On Tuesday, the group’s total market capitalisation rose by ₹12,190 crore – the first increase since the sell-off in its stocks began on January 25 triggered by the adverse Hindenburg Research report that resulted in its value almost halving.

Shares of the group’s flagship company

surged 20% on Wednesday to close at ₹2,164.25. The stock has rallied 37% in the last two trading sessions after declining 57% in the previous eight sessions. , , and hit the 5% upper circuit.

Adani Ports, which reported a 16% fall in consolidated net profit to ₹1,315 crore for the December quarter, gained 9% to close at ₹599.25. The company said on Tuesday it would repay debt of around ₹5,000 crore in FY23 and halve its capital expenditure to ₹4,000-4,500 crore in FY24 against ₹8,600 crore in FY23. Following yesterday’s quarterly results, global brokerage Goldman Sachs maintained its buy rating on

with a target price of ₹840.

Agencies

Some of the Adani Group companies said on Monday they were evaluating an independent assessment, after requisite corporate approvals, to look into compliance with laws and regulations as well as transaction-specific issues.

Adani Wilmar on Wednesday reported consolidated net profit growth of 16% to ₹246 crore for the three months ended December 2022. Revenue from operations increased 7% to ₹15,438 crore.

Adani Transmission on Monday reported a 73% jump in consolidated net profit to ₹478 crore for the quarter ended December 2022, with a one-time income of ₹240 crore from a regulatory order. and stocks hit the 5% lower circuit barrier while closed flat at ₹384.55. Analysts attributed the reversal in share prices to the Adani Group’s efforts to ease investor sentiment.

“The group would be repaying a lot of debt backed by shares pledged. So that risk is getting off. But the key question remains, what about the growth capex they were looking at?” said Siddhartha Khemka, head of research at

. “Some of the stocks have opened up from lower circuits, but if some other bad news were to come, they would again hit lower circuits. So apart from very high-risk traders or intraday traders, it is better to avoid the group as of now.”

Adani Total Gas,

and Adani Transmission shares had declined 64%, 58%, and 52%, respectively, since January 24, when US short-seller Hindenburg Research released an adverse report on Adani Group accusing the conglomerate of engaging in “brazen stock manipulation” and an “accounting fraud scheme.” Between January 24 and February 6, the total market capitalisation plunged by ₹9.41 lakh crore to ₹10.41 lakh crore. The Adani Group has rejected the report and denied any wrongdoing.

On Monday, the promoters of the conglomerate announced that they had paid loans totalling $1.1 billion ahead of maturity, freeing up pledged shares of Adani Green Energy, Adani Ports, and Adani Transmission. Global investment bank JP Morgan said Adani companies are still eligible for inclusion in its influential bond indices, boosting sentiment.