Adani Enterprises stock stabilises on robust results, rest bleed

MUMBAI: Adani Group companies’ stocks showed a mixed trend on Tuesday after flagship Adani Enterprises (AEL) announced robust quarterly numbers. Although Adani Ports, AEL and ACC closed higher, the other seven stocks closed deep in the red, dragging with it the conglomerate’s total market capitalisation down by Rs 18,753 crore to Rs 8. 8 lakh crore.

On Tuesday, AEL’s stock opened marginally higher, dived into the negative territory till mid-session when the company announced its quarterly numbers. It reported a Rs 740-crore net profit for the October-December quarter, as compared to Rs 2 crore a year ago. As a result, the stock rallied to an intraday high at Rs 1,889, but profit-taking at higher levels pulled it down to close at Rs 1,750, up nearly 2% on the day.

During the day, the group also came out with a detailed note on the debt on its booksand said that for the last eight years it had been deleveraging. The group’s stocks had seen their values plummeting since January 25, on the back of a report by US-based shortseller Hindenburg Research that had accused it of fraud, stock price manipulation and corporate malfeasance. The group had denied all of Hindenburg’s allegations. One of the main concerns of the investors in Adani Group was the huge pile of debt on its book. To address this particular concern among its investors, the group shared the detailed debt profit of its various arms.

At close of trading on Tuesday, Adani Total Gas, Adani Green Energy, Adani Transmission, Adani Power, NDTVand Adani Wilmar closed at the 5% lower circuit limit, while Ambuja Cements fell 1. 7%.

The day’s loss took the total slide in the conglomerate’s market value to nearly Rs 10. 4 lakh crore, from a high of Rs 19. 2 lakh crore on January 24, a day before the Hindenburg report was published, BSE data compiled by TOIshowed.