New Delhi: The natural gas distribution company, Adani Total Gas, has witnessed a sharp fall in its shares this morning. The company recorded its fifth straight fall of 5 percent today, taking the lower circuit at Rs 666.65, against the previous close of Rs 701.70. It traded just 1.78 percent higher from the March 1 price of Rs 655. This acute drop of Adani Gas stock registered around 83.33 percent fall to its January 2023 high value of Rs 3,998.35.
The Adani Group recorded a huge loss in its market value since January this year. Its downturn was especially recorded after the US based short seller firm Hindenburg launched its report alleging accounting fraud and stock manipulation against the Adani Group. The US Company also raised the size and capability issues with the CA firms auditing in the Adani Group. However, all the reports were denied by Adani and the CA firm Shah Dhandharia & Co.
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Believing the analysts, Adani Total Gas is witnessing a bearish market trend which will take the company to an enhanced deeper turn. Additionally, experts advise buying only when the daily close reaches above Rs 710 for targets of Rs 854 to Rs 1040. On the other hand, some indicated Adani’s stock moving weaker and the further possibility of shares reaching Rs 650.
Observing the past five days’ trading, the company is moving to a lower circuit. Moreover, the 14-day Relative Strength Index (RSI) for the counter stood at 23.76. To understand this, a value below 30 is defined as oversold while a value beyond 70 is defined as overbought. The price-to-equity (P/E) ratio for the company’s shares is 145.66. The price-to-book (P/B) value for it is 26.27.
However, in the March end quarter of 2023, Adani Total registered over 21 percent growth in its net profit. In the January to March quarter, its net profit climbed to Rs 97.91 crore against Rs 81.09 crore reported in the same quarter last year.
Evidently, the Hindenburg report has insanely affected the Adani Group, resulting in an unstable market performance.