Shares of Adani Total Gas Ltd extended their sharp upward move for the second consecutive session in Thursday's trade. The stock soared 18.59 per cent to hit a day high of Rs 823.30. At this price, it has zoomed 42.02 per cent in just two trading days.
Not just Adani Total, shares of all other nine listed group entities were trading in the positive territory today. This happened after the Indian conglomerate claimed that there were no bribery charges against Gautam Adani and other group executives.
"The confidence in the business fundamentals of Adani Group companies have not shaken despite US allegations. There are no doubts about the group's ability to deliver infrastructure projects. Today, the group has more than Rs 85,000 crore of EBITDA and 20 per cent kind of CAGR growth for 3 years. This is against a debt of around Rs 2,40,000 crore, which is around three years of EBITDA if at all the growth is not counted. I think nobody will even doubt including the banker about financial ability of the group to manage its businesses," Deven Choksey, MD of DR Choksey FinServ Private, told Business Today.
"As far as the sentiment part is concerned, the market's job is to react to such kind of negative news and let it react. I think that brings the fundamental value to a considerable level of bargain. That is where probably some of the bargain hunters would buy these companies in their portfolio and make faster money out of the particular situation," the market expert also said.
Technically, Adani Total's stock looked 'bullish' on the charts. That said, support on the counter could be seen at Rs 780, followed by Rs 744 and Rs 694 levels.
"Support will be at Rs 780 and resistance at Rs 850. A decisive move above Rs 850 level may trigger a further upside towards Rs 900. The expected trading range will be between Rs 750 and Rs 900 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.
"Adani Total Gas stock price is bullish on daily charts with strong support at Rs 694. A daily close above resistance of Rs 855 could lead an upside target of Rs 921 in the near term," said Sebi-registered research analyst AR Ramachandran.
"We foresee a short-term opportunity with a target price of Rs 870 and recommend maintaining a stop loss at Rs 744," said Kushal Gandhi, Technical Analyst at StoxBox.
Adani Green Energy Ltd (AGEL), in a BSE filing, said, "Gautam Adani, Sagar Adani and Vneet Jaain have not been charged with any violation of the FCPA (Foreign Corrupt Practices Act) in the counts outlined in the indictment of the United States Department of Justice (DOJ) or civil complaint of the US Securities and Exchange Commission (SEC)."
"These directors have been charged on three counts in the criminal indictment namely (i) alleged securities fraud conspiracy, (ii) alleged wire fraud conspiracy, and (iii) alleged securities fraud," it added. AGEL further stated that the US indictment does not specify any quantum of any fine or penalty.
US authorities last week accused Adani, his nephew and executive director Sagar Adani and managing director of AGEL, Vneet S Jaain, of being part of a scheme to pay bribes to secure Indian power supply contracts and misleading US investors.
The Adani Group has denied the accusations in the US indictment as baseless and said it will seek all legal recourse.
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.