All 7 Adani Shares Fall On November 7; 5 Of Them Down 35-86% Since Hindenburg Report; Any Sign Of Bulls Soon?

All seven Adani shares traded in deep red on Tuesday, November 7th after the the Chief Justice of India (CJI) DY Chandrachud on Monday asked all parties in the Adani-Hindenburg case to file final submissions by November 8, 2023. Out of the seven major stocks of Adani, 5 of them have fallen by a massive 35% to 86% since the Hindenburg report came in on January 24, 2023. There is a lack of bullish influence in Adani shares ahead.

On November 6th, Adani Power and Adani Wilmar nosediving by 2-3%, whereas, Adani Enterprises, Adani Energy, Adani Green, and Adani Total Gas slipped between 0.5-1.5%. Also, Adani Ports were marginally down. Other Adani stocks such as Ambuja Cements, ACC, and NDTV were also trading lower.

The seven major stocks traded near their intraday lows. These were -- Adani Enterprises (Rs 2,226.3 apiece), Adani Green Energy (Rs 918), Adani Total Gas (Rs 543.1), Adani Energy Solutions (Rs 762.5), Adani Ports (Rs 796.75), Adani Power (Rs 383.7) and Adani Wilmar (Rs 304 apiece). Some of these stocks were also near their 52-week lows.

Except for Adani Ports and Adani Power, all other five stocks have recorded significant drops since January 24. Such as, Adani Enterprises is down by 35.3%, Adani Green Energy dipped 52%, Adani Total Gas nosedived 86%, Adani Energy Solutions tumbled 60.2%, and Adani Wilmar is down by 47%.

Adani Power has gained by a whopping nearly 40%, becoming the only Adani stock to give double-digit returns since January 24. While Adani Ports is currently up nearly 5% since then.

On January 24, 2023, per share of Adani Enterprises stood at Rs 3,442.75, Adani Green Energy at Rs 1,913.55, Adani Total Gas at Rs 3,885.45, Adani Energy Solutions at Rs 1,913.55, Adani Ports at Rs 760.85, Adani Power at Rs 274.8, and Adani Wilmar at Rs 573.15 on BSE.

The US short seller Hindenburg on January 24 released a research report where it accused the Rs 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.

Also, in the report, the short seller stated that Gautam Adani, Founder and Chairman of the Adani Group amassing a net worth of roughly $120 billion, adding over $100 billion in the past 3 years largely through stock price, appreciation in the group's 7 key listed companies, which have spiked an average of 819% in that period.

Due to the bombshell report, Adani shares witnessed a market rout of a whopping $150 billion in the first quarter of 2023. However, Adani Group denied the accusations but could not escape the radar of Indian regulators. The Adani-Hindenburg matter is one of the most watched cases at the Supreme Court this year. In the latest development, the Chief Justice of India (CJI) DY Chandrachud on Monday asked all parties in the Adani-Hindenburg case to file final submissions by Wednesday. The case is still ongoing.

Are there any signs of bulls in Adani shares?

According to Manish Chowdhury, Head of Research, StoxBox, the investigations over allegations are still underway and the company is not out of the woods completely. We believe that it would be prudent to adopt a wait-and-watch approach as a reaction in stock prices could be very sensitive to news flow and valuation comfort is still missing in most Group companies.

However, Chowdhury is constructive of one Adani share. He added, "On the contrary, a high-risk appetite investor can look at Adani Ports, especially the market reaction to the Israel-Hamas war seems to be overdone as the company's Haifa Port is located in north Israel while the current war is concentrated in south Israel. Moreover, Haifa Port contributes less than 5% to the overall cargo of the company, further indicating that the recent fall is more sentimental in nature. Considering that the business is economic-centric in nature, has high entry barriers and possess long-duration concessions, we remain constructive on the company from a long-term perspective."

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.