Adani Group Stocks Fall By 5-13% In 1 Day, Lost Rs 1.13 Lakh Crore M-Cap; Buy-On-Dips In 5 Adani Stocks

Amidst the bloodbath in the Indian stock market, all Adani Group stocks also faced the wrath of bears on Wednesday. All Adani stocks were down by 5% to nearly 13% in a single day. The sharp selloff was due to investors dumping midcap and smallcap stocks due to expensive valuation and Sebi's latest tweaking in guidelines. Largecaps followed the trend.

There are ten Adani stocks on BSE and NSE. Of the total, three stocks are under the midcap category as their valuation is below Rs 1 lakh crore, and one stock belonged to a smallcap basket with m-cap less than Rs 1,500 crore. Six stocks are among the heavyweights with a valuation from Rs 1 lakh crore to Rs 3.5 lakh crore.

Overall, in the trading hours, the flagship giant of Adani Group, tumbled by 8.64%, followed by Adani Green Energy which nosedived the most to the tune of 13.4%, Adani Ports also shed 8.6%. These three are the top three most valued stocks in the Group.

Further, Adani Energy Solutions tumbled by 10.94%, while Adani Total Gas plunged by 10.7%, Adani Wilmar plummeted by 6.4%, and Adani Power saw the least drop in percentage terms but froze at its 5% lower circuit.

Other Adani stocks were Ambuja Cement which fell by 6.07%, and its subsidiary ACC which slipped by 8.12%. The Group's media stock fell by 9.23%.

After market hours, here are the latest Adani stock prices and their market cap:

- Adani Enterprises at Rs 2,904.95 with a market cap of Rs 3,31,164.63 crore.

- Adani Ports at Rs 1,209.60 with a market cap of Rs 2,61,290.41 crore.

- Adani Green Energy at Rs 1,726.55 with a market cap of Rs 2,73,491.13 crore.

- Adani Power at Rs 528.10 with a valuation of Rs 2,03,684.95 crore.

- Adani Energy Solutions at Rs 947.55 apiece with a market cap of Rs 1,05,698.51 crore.

- Adani Total Gas at Rs 873.85 with a market cap of Rs 96,106.90 crore.

- Adani Wilmar at Rs 332.60 with a market cap of Rs 43,227.31 crore.

- Ambuja Cements at Rs 559.80 with a market cap of Rs 1,11,156.42 crore.

- ACC at Rs 2387.10 apiece with a market cap of Rs 44,826.70 crore.

- NDTV at Rs 211.40 with a market cap of Rs 1,362.92 crore.

Together, their market capitalisation stood at Rs 14.72 lakh crore at the closing price. This is a wealth erosion of a massive Rs 1.13 lakh crore, compared to the valuation of Rs 15.85 lakh crore on the closing of Tuesday, March 12, 2024.

Adani stocks broadly felt the heat of bears that was due to selling in midcap and small-caps. Vinod Nair, Head of Research, Geojit Financial Services said, "In contrast to the global uptrend, unfavourable risk-reward balance of mid and small-cap stocks, fuelled by prolonged premium valuations, has aggravated the downfall. Meanwhile, FMCG and contrarian plays like gold are offering some refuge. Other than the premium valuation no fundamental issue is noticed to drawback the long-term growth image of domestic midcaps."

Also, Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services said, "Markets failed to maintain their momentum amid intense selling seen in mid and small-cap. Ongoing scrutiny from SEBI, pending outcome of MF stress test, and expensive valuation post smart rally seen in last few months led to profit booking."

The majority of experts believe the consolidation will continue for the short term, and chances are Adani stocks will also similar movement. However, the long-term trajectory is healthy and positive.

Amidst the latest correction, there are buy-on-dips opportunities in at least 5 Adani stocks:

As per Trendlyne data, the average 1-year target price and consensus of analysts are:

Adani Enterprise: The consensus recommendation from 2 analysts for Adani Enterprises Ltd. is STRONG BUY. The average target price is set at Rs 4,244, implying a 46% upside ahead.

Adani Ports: The consensus recommendation from 18 analysts for Adani Ports & Special Economic Zone Ltd. is BUY. The average target price is currently at Rs 1,375, indicating a potential 14% surge ahead.

Adani Wilmar: The consensus recommendation from 4 analysts for Adani Wilmar Ltd. is HOLD. The average target price is currently at Rs 388, indicating a potential upside of 17% ahead.

Adani Energy Solutions: The consensus recommendation from 1 analyst for Adani Energy Solutions Ltd. is STRONG BUY. The average target price is at Rs 1,365, signalling a potential 44% upside ahead.

ACC: The consensus recommendation from 32 analysts for ACC Ltd. is HOLD. The average target price is at Rs 2,658, signalling an 11% potential upside in the near term.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.