Adani Buzz: These 2 Adani Shares Are Recommended To Buy Ahead Of Election 2024; 12-25% Upside Likely

Two Adani Group-backed stocks are likely to benefit during the general elections in 2024 is a BJP-led government wins is in the offing. These two stocks are giants in the ports and cements segment namely Adani Ports and Ambuja Cements. Brokerage Fisdom believes that PM Narendra Modi's saffron party is expected to secure power in the upcoming elections and that the government will continue its ongoing pursuit of their primary objectives outlined in the 2014 and 2019 manifestos.

If that is the case, the brokerage expects a host of stocks to benefit including the two mentioned Adani stocks. Here's what brokerage Fisdom said about the two Adani stocks:

Ambuja Cements: (1st TP: Rs 600, 2nd TP: Rs 650, CMP: Rs 520.95, Potential Upside: 15-25%).

Recently, this Adani-led cement major saw a bullish cup and handle breakout on the monthly chart, trading above the pattern's neckline and maintaining support from an upward-rising trend line. Also, on the weekly timeframe, the stock has witnessed a symmetrical triangle breakout coupled with positive MACD and RSI indicators, which further supports a bullish outlook.

Fisdom's note said that foreseeing a continued positive trajectory, the strategic focus on cost reduction initiatives such as securing 200 megawatts of green energy, acquiring a new coal mine, logistic transformation, and long-term contracting for wagons is expected to further enhance margins of Ambuja.

Also, the government's emphasis on infrastructure development, affordable housing, and anticipated growth in rural demand, combined with increased private investments, positions Ambuja for continued success.

Moreover, the recent deal to acquire Sanghi Cements is expected to expand Ambuja's market reach in Gujarat and coastal markets, opening avenues for additional capacities and strengthening its market presence.

That being said, Fisdom said that considering recent developments, including organic and acquisition-driven capacity expansions, along with a dedicated focus on cost optimization strategies, they are optimistic about Ambuja's growth prospects. And hence, they have recommended buying the company's shares.

In 2023, Ambuja Cements share price was broadly in red and closed the year with a drop of 1% due to extreme volatility that occurred in Adani shares after Hindenburg's controversial report. Currently, the stock is at Rs 520.95 apiece.

Adani Ports & SEZ: (1st TP: Rs 1,150, 2nd TP: Rs 1,200, CMP: Rs 1,024.15, Potential Upside: 12-18%).

The port's flagship company of Adani has experienced notable volatility throughout the year but has recently broken out of a rectangle pattern on the monthly chart. Notably, the stock is trading above key exponential averages (21, 50 and 100), with the upward slope indicating a strengthening momentum. Also, the stock's RSI (14) observed a breakout from a falling channel pattern, with the oscillator moving above 60 levels and a bullish crossover on the horizon.

In the first half of FY24, Adani Ports achieved record-breaking cargo volumes, expected to surpass annual targets with a current monthly volume of 35 MMT. Notably, the US government dismissing accusations from Hindenburg Research played a key role in securing a $553 million loan approval for a Sri Lankan container terminal project by the International Development Finance Corporation (DFC), reinforcing ASPEZ's strong performance and global financial credibility.

Considering these positive developments and their strategic acquisitions, such as Gangavaram and Karaikal Port, Fisdom's note said, "We hold a favourable view of the stock's long-term growth prospects, and hence initiating a buy recommendation for the stock."

On BSE, Adani Ports' share price gained marginally to end at Rs 1,024.15 apiece on the last day of 2023 (December 29). The company's market cap stood at Rs 2,21,230.63 crore. Overall, in 2023, the stock has zoomed by 24.53% on BSE compared to double-digit declines of some of the major Adani shares due to the Hindenburg saga.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.