Seven Adani stocks lose ₹3,782 crore m-cap this week; check details

A majority of the Adani Group firms released their Q4FY23 (January-March) results this week, following which it led to volatile shift in the stock prices of the Adani group companies. Analysts feel that several Adani stocks are in a time-wise correction phase or have not had directional movement for a few weeks on the back of choppy trading sessions.

Seven Adani Group companies saw a net loss of ₹3,782 crore in market-cap this week.

Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Total Gas and Adani Wilmar lost market cap between ₹507 crore and ₹2,856 crore, while Adani Power gained market cap of ₹5,775 crore and Adani Ports & Special Economic Zone gained market-cap of ₹698 crore.

On Friday, five Adani group of companies ended flat, while Adani Transmission and Adani Total Gas ended down over 1%.

On Friday, after market hours, Adani Power reported its Q4FY23 earnings, where the major private thermal power producer in the country, posted a 12.9% on year jump in its consolidated net profit for the March quarter to ₹5,242 crore from ₹4,645 crore in Q4FY22.

Adani Power’s shares increased by approximately 2% to ₹243 before ending flat, on Friday’s session.

On the back of strong growth in the airports and road businesses, Adani Enterprises reported a more than doubling of net profit in the March quarter on Thursday.

According to a stock exchange statement by the firm, net profit for Q4FY23 was ₹722.48 crore, up 137% from ₹304.32 crore, during the same period last year.

On May 5, the morning BSE session saw volatile movement in the share price of Adani Enterprises. On May 5 compared to the previous finish of 1,909.30, the stock opened nearly 3% higher at 1,965 but quickly gave up much of its gains to trade with only small gains.

“Adani Enterprises is trading in the range of 1,960 to 1,790 level At this point stock is at upper band of consolidation with bearish candle. Stock will remain under pressure below 1960 level. Short term looks negative,” said Kapil Shah, Technical Analyst, Emkay Global and Technical Trainer, Finlearn Academy.

Following the release of the company’s consolidated net profit for the March quarter, which had declined by 60%, shares of major edible oil producer Adani Wilmar dropped about 5% on Wednesday.

On the BSE, the stock dropped 4.30% to close at ₹397.65 per share. It fell 6.11% throughout the day to ₹390.10.

For the quarter that ended in March 2023, Adani Wilmar declared a consolidated net profit of ₹93.61 crore on Wednesday. This was due to lower sales and declining cooking oil prices.

On Tuesday, Adani Total Gas Ltd announced a 21% increase in its quarterly consolidated net profit for the period ending in March 2023.

In comparison to the same period last year, Adani Green Energy reported a four-fold increase in its consolidated net profit to ₹507 crore on Monday. This was mostly due to higher sales.

“Adani Green from past one month, stock is trading in symmetric triangle. It indicates squeeze in price movement. Underlying tone for stock is sideways to negative.” said Kapil Shah.

The sale of the Myanmar Port was completed by Adani Ports and Special Economic Zone Ltd (APSEZ) for a total of $30 million. On Thursday, the Adani group made a statement regarding the sale of a port in Myanmar in one of its most recent exchange statements. Following the release of this stock market news, the price of Adani Ports’ shares recovered from its morning losses and turned positive, rising 1.50% from its intraday low.

MSCI to lower free float of two Adani group companies — Adani Total Gas, Adani Transmission

“Adani Port stock is hovering around downward sloping moving average. Stock is trading in the range of 690 to 655. Either side breach will dictate the further trend. At this point, view is sideways,” added Kapil.