Hindenburg effect: Adani Total Gas shares hit fresh 52-week low; down 77% in a month

Shares of Adani Total Gas tanked 5 per cent to hit a fresh 52-week low of Rs 834.95 in Wednesday's trading session. The stock has corrected over 77 per cent in just one month.

Notably, the Adani Total Gas stock is the worst hit among all the Adani Group listed firms. It has been in a downward trend ever since the Hindenburg report which claimed Adani Group's engagement in stock manipulation and accounting fraud scheme over the last few decades.

Adani Total Gas 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.

"Adani Total Gas is oversold but still very bearish and now will have next support at Rs 787. Investors should buy only if a daily close is above the resistance level of Rs 1,190. Targets will be Rs 1,391-1,519 in the near term," said AR Ramachandran from Tips2trades.

Billionaire and Adani Group chairman Gautam Adani’s net worth has also been in a downward spiral much like the combined market cap of Adani Group and the value of the Group’s stocks. Adani’s total wealth stands at $46.1 billion and he is in the 27th spot on the global rich list as of February 22, according to the Bloomberg Billionaires’ Index.

Recently, the global index provider MSCI said it will postpone the reduction of weights of two Adani group companies namely Adani Total Gas and Adani Transmission to its next index review in May. 

Earlier, it cut the free floats of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC, which had a combined 0.4 per cent weighting in the MSCI emerging markets index as of January 30.