Adani group stocks end lower; Adani Enterprises tumbles 7% as Moody’s downgrades rating

The logo of the Adani Group is seen on one of its buildings in Ahmedabad. File
| Photo Credit: Reuters

Shares of Adani group companies settled lower on Monday, with flagship company Adani Enterprises witnessing a 7% slump after credit rating firm Moody’s revised the rating outlook on four companies of the conglomerate to ‘negative’ from ‘stable’.

Amid volatile trading in the market, shares of the group companies closed in the red.

“Adani group stocks were under pressure today. During the day, there were more negative news flow for the group which weighed on investor sentiment, including a sharp cut to the revenue growth target by the conglomerate along with a downward revision to the outlook of four Adani group companies by Moody’s.

“The Adani group stocks (including Ambuja, ACC and NDTV) have lost around Rs 10.2 lakh crore or about 53 per cent of their combined market cap since January 24th till today,” Manish Chowdhury, Head of Research at Stoxbox, said.

On Monday, the scrip of Adani Enterprises declined a 7.03% to settle at ₹1,717.55 apiece. During the day, the shares of the flagship company went lower by 10% to ₹1,662.65 each — also its lower circuit level on the BSE.

The flagship company’s market valuation dipped ₹14,797.22 crore to stand at ₹1.95 lakh crore.

Shares of Adani Ports and Special Economic Zone (APSEZ) slipped 5.25% to end at ₹553.20 per share, while Ambuja Cements dipped 5.17% to close at ₹342.40 a scrip.

The market capitalisation of APSEZ dropped ₹6,620.82 crore to ₹1.19 lakh crore.

Besides, the stock of Adani Power settled lower at ₹156.10 each, Adani Transmission at ₹1,126.85, Adani Green Energy at ₹687.75 and Adani Total Gas at ₹1,195.35.

Similarly, shares of Adani Wilmar also closed lower at ₹414.30 and NDTV at ₹198.25 per piece on the bourse.

Scrips of these companies plunged 5% each and their closing levels touched the respective lower price bands on the BSE.

During the day, scrip of Adani Transmission, Adani Green Energy and Adani Total Gas touched their 52-week low of ₹1,126.85, ₹687.75 and ₹1,195.35, respectively on the exchange.

In addition, shares of ACC fell 3.06% to settle at ₹1,823.40 per piece.

Meanwhile, the 30-share BSE Sensex benchmark index closed 250.86 points or 0.41% lower at 60,431.84 points on Monday.

“The market cap of Adani group companies continued to fall, down by 5.4% on February 13, following the group’s revision of its revenue growth target to 15-20% for the next fiscal year, which is a significant drop from the earlier target of 40%,” Deepak Jasani, Head of Retail Research at HDFC Securities, said.

In a statement on Friday, Moody’s Investor Service said that it has revised the rating outlook on four Adani Group companies to negative from stable after a significant and rapid decline in market value following a report by U.S.-based short seller Hindenburg Research.