Adani Stocks Plunge Up To 59% Since Hindenburg Report
Short-seller Hindenburg Research's report and the Adani Group's decision to call off its flagship Adani Enterprises Ltd.'s follow-on public offer has sent the conglomerate's stocks spiralling, erasing more than $100 billion in valuation.
The total market capitalisation of the group tanked to Rs 10,00,000 core on Feb. 3, from Rs 19,20,000 crore on Jan. 24, the day of the Hindenburg's report release.
All 10 of the group stocks fell on a weekly basis as the Indian billionaire battled to restore confidence after accusations of "stock manipulation" by Hindenburg Research. The Adani Group has called the report a "malicious combination of selective misinformation and stale, baseless, and discredited allegations that have been tested and rejected by India's highest courts".
Adani Enterprises Ltd. fell by 35% to its 52-week low of Rs 1,017.47 apiece on Friday, the 10th day after the report was released on Jan. 24. However, it along with other group stocks recovered from the day's lows.
On Friday, Adani Ports and Special Economic Zone Ltd., ACC Ltd., Ambuja Cements Ltd., and Adani Enterprises Ltd. advanced.
Adani Wilmar Ltd., Adani Transmission Ltd., Adani Green Energy Ltd., Adani Total Gas Ltd., and Adani Power Ltd. declined in trade.
Additional Surveillance Measure For Stocks
According to the exchanges, Adani Ports and SEZ and Ambuja Cements were on the F&O ban list for Feb. 3, 2022. That cushioned these stocks as they fell significantly lower than Adani Enterprises.
Stock Rout Since Hindenburg Report
After Hindenburg Research released their report on Jan. 24, shares of Adani Total Gas Ltd. declined the most—among all the group companies—by 59.41%, followed by Adani Enterprises' 53.82% plunge.
Adani Green Energy, Adani Transmission, Adani Ports, Adani Power, Adani Wilmar, Ambuja Cements, and ACC also declined since Jan. 24 as the headline NSE Nifty 50 advanced.
Adani Enterprises Since Hindenburg Report's Release
Shares of Adani Enterprises advanced 1.38% to Rs 1,586.8 apiece on Friday.
The stock fell as much as 35% intraday—the most in over 52 weeks—to Rs 1,017.45 on Friday. It has tumbled 54% since the release of the report on Jan. 24.
Total traded volume stood at 9.3 times its 30-day average. The relative strength index of 13 implies that the stock may be oversold. The percentage of the deliverable quantity to the traded quantity stood at 10.62%.
Out of the two analysts tracking the company, one maintained a 'buy', while the other suggested 'hold'. The average of their estimates implies a potential upside of 121.3% over the next 12 months.
Adani Ports & SEZ
Shares of Adani Ports and Special Economic Zone advanced 7.87% to close at Rs 498.85 apiece on Friday.
The stock fell as much as 14.56% intraday, the most in over 52 weeks, to Rs 395.1 on Friday. It is down 35.13% since the Hindenburg report was released.
Total traded volume stood at 6.2 times its 30-day average. The relative strength index at 19 implies that the stock may be oversold. The percentage of deliverable quantity to the traded quantity stood at 20.65%.
Out of the 21 analysts tracking the company, 20 maintained a 'buy' rating while one suggested 'hold', according to Bloomberg data.
The return potential stands at 88.2% over the next 12 months.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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