Adani Total Gas shares slip below Rs 1,000 mark, down 75% in 19 straight sessions

Shares of Adani Total Gas fell sharply in Friday's trade, extending their fall for the 19th consecutive session. The stock today dived 5 per cent to hit the lower circuit -- also its 52-week low -- of Rs 973.75 against a previous close of Rs 1,024.95. Adani Total Gas has slumped 75.15 per cent in 19 straight days. Around 1.26 lakh shares changed hands today on BSE, which was higher than the two-week average volume of Rs 86,000. Turnover on the counter stood at Rs 12.45 crore, commanding a market capitalisation (m-cap) of Rs 1,07,094.01 crore. There were 38,748 sell orders against buy orders of nil shares.

On the earnings front, the company reported a consolidated net profit of Rs 150 crore for the December quarter (Q3 FY23), up 17 per cent from Rs 128 crore in the same quarter a year ago. Revenue from operations came at Rs 1,185 crore in Q3 FY23, up 27 per cent from Rs 932 crore in Q3 FY22.

Support on the counter could be seen at Rs 841, an analyst said. "Adani Total Gas has strong resistance of Rs 1,130 on the daily charts. Investors should buy only if a daily close is above the mentioned resistance level for targets of Rs 1,244-1,492 in the near term. Support will be at Rs 841," said AR Ramachandran from Tips2trades.

The stock was last seen trading lower than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 10.19. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 224.84.

That said, Adani Total has an average target price of Rs 3,475, Trendlyne data showed, suggesting a potential upside of 257.69 per cent. The scrip has a one-year beta of 1.40, indicating high volatility.

US-based index provider MSCI, yesterday, said it would postpone the implementation of updates to weightings for two of the Adani Group companies, Adani Total Gas and Adani Transmission, to the May benchmark review. The reversal of the updates to Adani Total and Adani Transmission in the February review started reflecting in the MSCI Index Product files from February 16, it stated.

Since January 24, Adani stocks took a major hit after US-based short seller Hindenburg Research alleged that the Gautam Adani-led Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.

Adani Total Gas is a joint venture between France's energy major Total and Adani Group.

Meanwhile, Indian equity benchmarks slipped in early trade today, dragged by banks, financials, technology and pharma stocks. As of 10:46 am, the 30-share BSE Sensex pack fell 123 points or 0.20 per cent to trade at 61,197; while the broader NSE Nifty index moved 39 points or 0.22 per cent lower to trade at 17,996.
 

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