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Why did Adani Group stocks fall today? 4 of them hit lower circuit

Adani stocks have been outperforming for majority of the current year due to their big deals and growth outlooks. (Bloomberg)Premium
Adani stocks have been outperforming for majority of the current year due to their big deals and growth outlooks. (Bloomberg)

  • Four of Adani's stocks namely flagship company Adani Enterprises along with other arms Adani Total Gas, Adani Power, and Adani Wilmar hit their lower circuit during the day's trading session before correcting.
  • Thereby, the latest downfall in Adani shares can be due to profit-booking by investors.

Adani Group stocks slipped between 4-10% on Monday tracking a broader bearish market tone. Four of Adani's stocks namely flagship company Adani Enterprises along with other arms Adani Total Gas, Adani Power, and Adani Wilmar hit their lower circuit during the day's trading session before correcting. Adani stocks have been outperforming for majority of the current year due to their big deals and growth outlooks. Thereby, the latest downfall in Adani shares can be due to profit-booking by investors.

There are seven companies of Adani Group listed on stock exchanges. They are -- Adani Enterprises, Adani Power, Adani Total Gas, Adani Green Energy, Adani Port, Adani Wilmar, and Adani Transmission.

Here's how the Adani shares have performed.

Adani Enterprises share price

Adani Enterprises struck a 10% lower circuit on Monday. The stock plunged for the seventh consecutive day. Overall, the stock has nosedived by over 15% in seven days. From its 52-week high of 3,883.70 apiece which was clocked on September 20, Adani Enterprises shares have plummeted by over 23%.

On BSE, Adani Enterprises closed at 3,157.15 apiece down by 293.85 or 8.51%. The company's market cap is around 3,59,915.45 crore.

Last week, the company announced that its wholly-owned subsidiaries achieved financial closure of the Access-Controlled Six Lane (Expandable to Eight Lane) Greenfield Ganga Expressway Project (Group-II, III & IV) in the State of Uttar Pradesh under PPP mode.

The company also raised 100 crore through the issuance of market-linked debentures.

Adani Power share price

On BSE, Adani Power ended at a 5% lower circuit at 355.15 apiece. The shares were down by 18.65 from last week's Friday closing. Currently, the company's market valuation is around 1,36,979.19 crore.

Adani Power is down by nearly 18% from its 52-week high of 432.80 apiece which was recorded on August 22.

Adani Total Gas share price

The natural gas supplier closed at 3,104.65 apiece down by 232.35 or 6.96%. Earlier, in the day, the shares did touch a 10% lower circuit before correcting. The company's market valuation is around 3,41,452.54 crore.

This would be the third drop in a row in Adani Total shares. Compared to its 52-week high of 3,816.30 apiece that was witnessed on August 30, the company's shares have dipped nearly 19% as of now.

Last week, Ventura Securities on Adani Total Gas in its report said, "We expect gas volumes to grow at a CAGR of 54.3% to 2,382 mmscm by FY25. Over the same period revenue/ EBITDA/ net profit to increase at a CAGR of 38.7%/ 55.2%/ 65.2% to 8,105 cr/ 2,888 cr/ 2,296 cr respectively. EBITDA and net profit per scm is expected to marginally improve from 11.9/scm and 7.9/scm in FY22 to 12.1/scm and 9.6/scm in FY25, respectively. Despite the aggressive capex, the balance sheet is expected to remain healthy due to strong cash flow generation. Subsequently, return ratios – RoE and RoIC are expected to improve by 1627bps to 37.4% and 1202bps to 32.5% respectively by FY25."

On valuation, the analysts added, "Since our coverage initiation on Adani Total Gas Ltd (ATGL) the stock has rallied from 1,685, ~105% to 3,456. As we roll forward and bake in FY25 estimates, we believe that the stock has run far ahead of the fundamentals," adding, "we recommend a HOLD on the stock with a target price to 3,475 representing an upside of 0.5%."

Adani Transmission share price

Adani's power transmission company finished at 3,120.65 apiece down by 170.05 or 5.17% on BSE. The company's marke cap is around 3,48,106.22 crore.

This would be Adani Transmission's seventh consecutive decline on Dalal Street. The last time the stock traded above 4,000 mark was on September 22.

This Adani stock touched a 52-week high of 4,238.55 apiece on September 16. Since then, the shares have plunged over 26%.

Adani Green Energy share price

On BSE, Adani Green closed at 2,076.65 apiece down by 182.90 or 8.09%. The company's market valuation is around 3,28,948.10 crore.

On October 3, the company announced that its wholly-owned subsidiary Adani Renewable Energy Holding Four incorporated three new subsidiaries.

The main objective of the new subsidiaries is to generate, develop, transform, distribute, transmit, sale, and supply any kind of power or electrical energy using wind energy, solar energy, or other renewable sources of energy, as per the regulatory filing.

The shares have been under pressure since last month. Adani Green shares dropped for seven days in a row between September 21 to 29, before rebounding slightly at 2,259.55 apiece on September 30. However, the start of October has been on a bearish tone. That being said, the shares have tumbled by at least 13.5% in the last 11 days.

The shares shed nearly 32% from their highest level. The company recorded a 52-week high of 3,048 apiece on April 19.

Adani Wilmar share price

Adani's FMCG player dipped to a 5% lower circuit to settle at 717.55 apiece. The company's market cap is around 93,258.44 crore.

From its highest level, Adani Wilmar shares have plunged by more than 18% as of now. The shares hit a 52-week high of 878.35 on April 28.

Adani Ports share price

On BSE, Adani Ports shares ended at 785.45 apiece down y 35.60 or 4.34%. The company's market cap is around 1,65,916.36 crore.

In the latest seven days, Adani Port shares have dived by 161.5 or 17.05%. From its 52-week high of 987.90 apiece clocked on September 20, Adani Ports shares have tumbled by about 20.5%.

On October 3, the company announced its operating performance for September 2022. The company recorded 13% YoY growth in cargo volumes to reach 26.1 MMT in September. It said, "This volume jump is despite an extended monsoon which adversely impacted the coal demand/imports and the ban/higher duties on rice exports imposed at the beginning of the month."

In the first six months of FY23, the company managed 177.5 MMT of cargo, which is a good 11% increase over the corresponding period last year. The average monthly cargo run rate is well aligned within our annual guided range of 350 -360 MMT.

As of October 3, Adani Group is the most valued conglomerate with a cumulative market valuation of over 17.74 lakh crore of its 7 listed firms. Meanwhile, Mukesh Ambani's Reliance Industries has a market cap of over 16.06 lakh crore followed by Tata Group's TCS with a valuation of over 10.92 lakh crore currently.

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