Adani stocks rally up to 56% in three sessions; more steam left?

Adani Group's shares have been buzzing at Dalal Street for the last few sessions, thanks to the renewed buying interest of the traders in the counters of Gautam Adani-led conglomerate. The Adani Group stocks have rallied as much as 56 per cent in the last three sessions, with a few counters hitting their new 52-week highs lately.

The morale for Adani Group was boosted by a Bloomberg report, wherein the news agency, citing officials, said that the US agency concluded accusations against the Gautam Adani-led conglomerate weren’t relevant. Traders saw this as a 'clean chit' from the US after Hindenburg's report, which had wiped out about $100 billion in the Adani Group's market cap in January 2023,
 
The focus of the International Development Finance Corp (DFC) during its due diligence investigation of the Adani Group was on the damning accusations outlined in a critical report by US-based Hindenburg Research. Hindenburg Research's report played a central role in the scrutiny conducted by the US agency, as stated by an official of the Agency, reported Bloomberg.

In an interaction with Business Today TV, Vinit Bolinjkar, Head of Research at Ventura Securities said that after the 'clean chit' to Adani Group from the US, a lot of bond money will inflow in the group, easing out the liquidity pressure. "The group will be able to get long-term funding at lower rates given its focus on the infrastructure sector."

The total market capitalization of Gautam Adani's listed-empire topped Rs 15 lakh crore as of day's high levels on Wednesday. Some stocks surged up to 19 per cent on an intra-day basis, extending the secular run to the straight third session, with an overall jump of 56 per cent during the period.

Check the real-time market capitalisation of Adani group stocks HERE.

However, the linear rise in the Gautam Adani-led stocks have investors and traders wondering if more steam is left in the stock. Majority of the analysts and experts suggest avoiding any fresh trade in the Adani Stocks but believe that the worst is over for them and the companies with constant cash-flow will continue to attract money.

Kranthi Bathini, Equity strategist at WealthMills Securities said that the news is definitely positive but investors should be cautious about the current valuations. "Those who are holding Adani Group stocks may keep them, but fresh entry is not advised. Cash-flowing companies like Adani Ports, Ambuja Cements and flagship firm Adani Enterprises will continue attract trading bets," he said.

Adani Group's flagship company, Adani Enterprises Ltd, advanced about 7 per cent in the early trade to Rs 3,155, with a total market capitalization of Rs 3.5 lakh crore. The blue-chip counter has delivered more than 200 per cent from its 52-week low, while it is up 35 per cent in the last three-sessions.

Adani Ports and Special Economic Zone Ltd rose more than 7 per cent to Rs 1,082.95, its new record highs. Company's market cap hit Rs 2.3 lakh crore mark. The stock is up 175 per cent from its 52-week lows, while it is up 31 per cent in the last three trading sessions.

Also read: Adani stocks rise up to 19% in early trade; shares rally up to 56% in 3 sessions

Global brokerage firm Citi has raised its target price on the stock to Rs 1,213 from Rs 972 earlier with a 'buy' rating. Adani Ports continues to execute well and grow its dominance in India's port and logistics space, said the foreign brokerage firm explaining the rationale over its upgrade.

Kotak Institutional Equities also increased its volume and EBITDA estimates by 4 per cent and 6 per cent, respectively as Adani Ports continues to outperform in a market gaining momentum. "We increased our fair value by a higher 12 per cent to Rs 1,060. The stock is the top pick within our transportation coverage," it added.

Adani Green Energy Ltd surged more than 19 per cent to Rs 1,605.65, with its total market capitalization hitting Rs 2.5 lakh crore mark. The stock has rallied more than 55 per cent in the last three sessions. Adani Total Gas Ltd soared 18 per cent to Rs 1033.75, commanding a total market cap of more than Rs 1.10 lakh crore. The stock was up 46 per cent in the three trading sessions.

Adani Energy Solutions rose more than 15 per cent to Rs 1246 for the day, while Adani Power Ltd advanced more than 9 per cent to Rs 589.30, hitting its 52-week high and a total market capitalization of more than Rs 2.25 lakh crore. The stock is up 350 per cent from its 52-week lows at Rs 132.55, hit in February 2023.

Avinash Gorakshakar, Head of Research at ProfitMart Securities said that the latest news is a big sentimental boost for the Adani Group. Volatility in the Adani Group stocks will continue but the group is poised to see good time ahead. However, he also seconded the tone to avoid any fresh positions in the Gautam Adani's conglomerate, in an interaction with the BT TV.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Also read: Adani Total Gas shares zoom 18%, breach Rs 1,000 mark after eight months 

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