Adani Transmission shares hit 52-week low, plunge 39% in 4 sessions

Shares of Adani Transmission hit their lower circuit level on Monday. The stock nosedived 20 per cent to hit an intraday low - also its 52-week low -- of Rs 1,607.80 over its previous close of Rs 2,009.70. The scrip eventually settled 14.91 per cent lower at Rs 1,710.10 on BSE. At today's closing price, Adani Transmission has lost 38.54 per cent in four straight sessions.

Adani Group stocks came under the scanner after a report by US-based short seller Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.

On the technical front, support on the counter could be seen at Rs 1,505 level, an analyst said. "Adani Transmission expectedly looks bearish but very oversold on the daily charts. Investors should buy only if a close is above Rs 1,828. Rs 1,505 will be the next support," said AR Ramachandran from Tips2trades.

Targets would be Rs 2,085-2,222 in the near term, he added.

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 18.22. 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 27779.50.

That said, Adani Transmission has an average target price of Rs 4,172, Trendlyne data showed, suggesting a potential upside of 158.65 per cent. The scrip has a one-year beta of 1.26, indicating high volatility.

Four (Adani Total Gas, Adani Wilmar, Adani Power, and NDTV) out of 10 listed Adani Group companies finally settled at their respective lower price bands on BSE today. (10 listed Adani stocks include recently acquired ACC, Ambuja Cements and NDTV.)

Adani Green Energy closed 19.99 per cent lower at Rs 1,187.70 over its previous close of Rs 1484.50, just a little above its lower circuit level of Rs 1,187.60. Also, Adani Transmission ended 14.91 per cent lower at Rs 1,710.10, slightly above its lower price band of Rs 1,607.80, touched in intraday deals. Adani Ports and Special Economic Zone fell 0.29 per cent today.

In contrast, the group's flagship Adani Enterprises, Ambuja Cements and ACC jumped up to 4.21 per cent.

Adani Enterprises' Rs 20,000-crore follow-on public offer (FPO) received bids for 13,98,516 shares on the second day of bidding (Day 2). The issue was subscribed just 3 per cent of the total size of 4,55,06,791 shares, as of 5 pm today.

The issue has received a tepid response so far amid a sharp fall in shares of Adani Group. However, Adani Enterprises' stock rebounded today, but it is still trading below the FPO price band of Rs 3,112-3,276 per share.

Meanwhile, Indian equity benchmarks settled higher in highly volatile trade as gains in technology and consumer durables countered losses in energy and consumer goods stocks. The 30-share BSE Sensex pack rose 170 points or 0.29 per cent to close at 59,500; while the broader NSE Nifty index moved 45 points or 0.25 per cent higher to finish at 17,648.

Also read: Adani Enterprises FPO: Group CFO says significant participation likely from institutional, strategic investors

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