Why is Adani Total Gas share price at lower circuit today - explained
2 min read 17 May 2023, 10:55 AM ISTAdani Total Gas share price are down 25 per cent in May so far and 80 per cent in the calendar year 2023 so far.
PremiumThe losing streak of Adani Total Gas stock continued as they fell 5 per cent to hit their lower circuit on BSE on May 17. The stock opened at ₹713.80 against the previous close of ₹738.60 and fell 5 per cent to hit the lower circuit of ₹701.70 and also ended at this level.
The stock has been under pressure this year so far, especially after the Adani-Hindenburg saga. Data show that after suffering deep cuts of 43 per cent and 68 per cent in January and February, respectively, the stock jumped 27 per cent in March and rose 9 per cent in April. But the month of May has been bad for the stock so far. The stock is down nearly 26 per cent in May so far and 81 per cent in the calendar year 2023 so far (as of May 17).
Adani Total Gas is set to be dropped out of the MSCI India index. The global index took the decision as part of its quarterly comprehensive index review. The order will be effective at the close of trading on May 31. As per Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research, due to the exclusion from the MSCI India index, Adani Total Gas may see an outflow of about $186 million.
Morgan Stanley Capital International (MSCI) took the decision as part of its quarterly comprehensive index review. The MSCI has changed its index's calculation on the number of shares considered freely tradable in the public market for the two companies. The order will be effective at the close of trading on May 31.
According to stock market experts, Adani shares are falling after MSCI Index rejig and the recent fundraising programme is unable to pare the negative sentiments that emerged after this MSCI announcement.
Read more: Why Adani shares are falling despite ₹8500 crore fund raise plans — explained
Meanwhile, Adani Total Gas on May 2 reported a 21 per cent rise in net profit (attributable to owners) at ₹97.91 crore for the quarter that ended March 2023. This is against a consolidated net profit of ₹81.09 crore in the corresponding quarter last fiscal.
Its consolidated revenue from operations rose by 10.2 per cent to ₹1,114.8 crore during the quarter under review compared to ₹1,012 crore a year ago. On the operating front, EBITDA (earnings before interest, taxes, depreciation and amortization) gained 49 per cent year-on-year to ₹195.2 crore and margins improved to 17.5 per cent from 13 per cent in March 2022 quarter.
Meanwhile, the Securities and Exchange Board of India (SEBI) has received an extension of time till August 14 to complete its probe into the Adani-Hindenburg episode.
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