Adani Enterprises, after falling non-stop for seven consecutive trading sessions, was on a downward trajectory when the markets opened today but soon bounced back to gain an upside of around 26% from the day’s low to hit the day’s high at Rs 1,391.85. The stock started in the red showing a fall of 7% in the morning but later on hit 15% upper circuit and showcased a sharp U-turn.
Investors have shown their confidence in other stocks of the group and as a result of that, 8 out of 10 counters were in the green zone. Talking about the gains represented by a few, Adani Green Energy was up 10.51 percent from the day’s low of Rs 439.35.
Adani Wilmar was up 3.7 per cent at Rs 357. Adani Ports gained 4.52 percent to Rs 587.40. Ambuja Cements was up 5.4 per cent at Rs 347.50. ACC also gained 2.96 percent to Rs 1,744.50.
The major causes for such a price behavior in the stock today are summarised as follows.
Firstly, Index provider MSCI, tomorrow will be reshuffling the weightage given to the group and its subsidiary companies, and in progression to that event; markets are speculating that the stock may bottom out.
Another factor that brought the interest of the investors back in the stock today was a report published by Economic Times (ET) which stated that lenders led by the State Bank of India (SBI) that are conducting an annual review of Adani Enterprises have decided to maintain ‘status quo’ on credit limits sanctioned for the company.
Further, Reuters also published a report that suggested the Gautam Adani-led group was planning to prepay or repay share-backed loans worth $690 million to $790 million by March end.
Adani Enterprises Limited is an Indian multinational publicly listed holding company and a part of Adani Group. Headquartered in Ahmedabad, the group is primarily involved in the mining and trading of coal and iron ore.
Through its various subsidiaries, it has scaled its business interests in airport operations, edible oils, road, rail, and water infrastructure, data centers, and solar manufacturing, among others.
Talking about the financials, the company’s revenue has been impacted due to the negative talks about the company showing a QoQ decline from 38,175 crores in September 2022 to 26,612 crores in December 2022.
Net profits of the company have managed to stay on an upward scale and show an increase from 438 crores in September 2022 to 636 crores in December 2022.
Written by Amit Madnani
