Adani Group stocks down up to 8%; check stock updates, analyst views & targets

Adani Group stocks continued to remain buzzing at Dalal Street. After a sharp rally in the last few sessions, the majority of the Gautam Adani led companies took a surprising U-turn and dropped up to 8 per cent during the trading session on Wednesday, triggering angst among the investors. As the euphoria of recent optimism settled, investors took some money off the table as Adani stocks gained up to 45 per cent since Friday, May 19. The stocks have been under the spotlight after Supreme Court's comments, fundraising plans, sale of non-core assets and additional inflow by GQG Partners. Adani Enterprises, the flagship company of Adani Group, dropped about 8 per cent on Monday, while Adani Wilmar hit a lower circuit of 5 per cent. Adani Green Energy and Adani Ports dropped 4 per cent each and Adani Power shed 2 per cent. Ambuja Cements and ACC were also seen in red during the majority of the trading session. However, not all 10 stocks of Adani Group were tumbling lower. Adani Transmission, Adani Total Gas and New Delhi Television (NDTV) continued to his upper circuit of 5 per cent each for the day. The Supreme Court appointed panel which looked into the Hindenburg allegations filed their report, noting that they could not prima facie find violations by Adani in ownership structure or foreign investments.

Also Watch: Gautam Adani reclaims spot in Bloomberg Billionaires Index top 20 after sharp rally in Adani Group stocks as Hindenburg effect fades Adani stocks have been in buzz after the Supreme Court appointed AM Sapre committee suggested it was not possible to conclude that there was a regulatory failure on Hindenburg's price manipulation allegation. The company is looking to raise funds and sell its non-core assets according to media reports.

This drove a sharp rally in Adani stocks from investors who had turned cautious on the group following the accusations, said Amber Pabreja, Founder and CEO of Trendlyne with a word of caution for the investors.

The Supreme Court panel appointed to look into the allegations did not have access or the enforcement ability to probe into the detailed ownership structure of the various Mauritius-based companies that are at the heart of this. Mauritius laws mean that the ownership of these companies is cloaked in secrecy, he said. "When the panel requested testimony on this issue from various international parties and bankers such as Goldman Sachs, they were refused. Some questions related to their ownership linked to Adani or his close-knitted ones, remain unanswered. The panel report has not been able to definitively verify or deny the Hindenburg accusations," he added. Alongside, GQG Partners' Rajiv Jain raised its stake in billionaire Gautam Adani’s conglomerate by about 10 per cent as his holdings in the conglomerate now stand at $3.5 billion. He also intends to take part in the conglomerate’s future fund raising. Jain, in an interview with Bloomberg, called Adani Group stock as 'the best infrastructure assets available in India'. Even after a word of caution, a few analysts are positive on select Adani Group stocks and suggest corrections to them on corrections. However, experts say that their advice needs to be taken with a pinch of salt.

Also Watch: Multibagger stocks: Apar Industries, KPIT Technologies, Anant Raj, other shares that rallied up to 340% in 1 year Global brokerage Jefferies has ‘Buy’ ratings on two Adani Group stocks namely Adani Transmission and Adani Ports with a target price of Rs 3,275 and Rs 800, respectively. Kranthi Bathini, Equity strategist at WealthMills Securities said the profit booking after a rally is not surprising but the fundamentals of the company remain unchanged after recent developments. Investors' confidence and perception is turning positive over Adani Group stocks, he said. "If one is looking for value unlocking, then they can look at Adani Ports, Ambuja Cements and ACC, while investors with high risk appetite can consider buying Adani Enterprises for the longer run as it has always been a high beta counter," he added. Brokerage Firm KR Choksey has a target price of Rs 2,166 on ACC, while Axis Securities pegs its value at Rs 2,300 as both brokerages suggest to 'buy' the stock. On the other hand, Geojit Financial Services and BOB Capital Markets both have 'hold' rating on Ambuja Cements, with a target price of Rs 430 and Rs 375, respectively. Kotak Institutional Equities has a buy rating on the stock with a target price of Rs 810 apiece, while ICICI Direct gave the stock a 'buy' in April 2023, with a target price of Rs 800. KR Choksey sees Adani Wilmar at 515 with a buy call, while ICICI Securities has given it a 'sell' rating with a target price of Rs 375. "We are going to see a huge number of institutional investors coming in buying these stocks because the clouds of uncertainty around stocks have been cleared. At the same time, valuations are also good. They have access to growth capital. The group has emerged stronger, said Vinit Bolinjkar, Head of Research at Ventura Securities, who won't be surprised if Adani Enterprises gets a target of Rs 4,000. Adani Ports seems reasonable to look at from an investment point of view, as the company's financials are strong and the valuations are also reasonable as compared to the others in the group. Cash flows are also positive for the company, said  Sachin Jasuja, Founding Partner,  Equities at Centricity Wealthtech.

Also Watch: LIC share price rises ahead of Q4 results, up 9% in 1 month; should you buy? See what analysts say Abhishek Basumallick, Chief Equity Advisor, Intelsense Capital said that news flow has now slowly started turning positive from extremely negative that we saw from January onwards, so things seem to have bottomed out. "The recent SC development acted as a fillip to the stock in the recent past. Valuations still continue to be slightly challenging. Businesses will continue to perform as they were performing earlier. At present, I am tracking Adani Ports and Adani Wilmar from the sidelines with no intention to buy or sell at this point in time," he said.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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