Shares of Adani Energy Solutions Ltd, formerly known as Adani Transmission Ltd, on Monday tanked 4.64 per cent to touch their one-year low value of Rs 619.25. The stock eventually settled 3.78 per cent down at Rs 624.85. At this price, it has slumped 28.35 per cent in just three trading days.
Adani stocks came under pressure after the group's chair Gautam Adani and his nephew Sagar were indicted in the United States over bribery and fraud charges. US authorities said Adani and seven other defendants (including Sagar), agreed to pay bribes to Indian government officials to obtain contracts and develop India's largest solar power plant project. Adani, on its part, has denied the allegations and called them "baseless".
The fresh charges follow much turmoil for the Adani Group in January last year when US-based short seller Hindenburg Research accused it of using offshore tax havens improperly - a charge that the Indian conglomerate has denied.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Adani Group's US indictment and cancellation of Kenyan order have been creating pressure on the counter. Investors with a high-risk appetite only should consider this stock. With that being said, one should remain in 'wait-and-watch' mode, given the current heightened volatility."
Technically, immediate support on the counter could be seen at Rs 600 level. Resistance may be found above the Rs 720 zone.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Adani Energy has dropped over 28 per cent due to negative news, resulting in a breakdown that has reached a new 52-week low. The recent development is quite devastating for the counter, though such volatility can be unpredictable and may shift with new developments. It can further slip towards Rs 600 on an intermediate basis. It is advised to stay sideline until volatility subsides in the counter."
Sebi-registered research analyst AR Ramachandran said, "Adani Energy is bearish but also oversold on daily charts. Investors should buy only if a daily close is above resistance of Rs 724 for a target of Rs 800 in the near term."
The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 21.95. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 175.31 against a price-to-book (P/B) value of 4.03. Earnings per share (EPS) stood at 3.70 with a return on equity (RoE) of 2.30. Promoters held a 69.94 per cent stake in the company as of September 2024.