Adani Wilmar Ltd shares nosedived 10 per cent in Thursday's trade to touch their all-time low value of Rs 294.40. At this price, the stock has corrected nearly 20 per cent in the calendar year 2024. Market watchers largely suggested that the scrip could slip further in the near term.
"Adani Group shares are high-beta in nature. Investors should remain in 'wait-and-watch' mode, given the current heightened volatility. These stocks are suitable for investors with a high-risk appetite," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"There could be more fall in Adani stocks. It is advised to avoid these counters at current levels," market expert Raghvendra Singh told Business Today.
Today's steep fall in the Adani stocks came after Adani Group's chair Gautam Adani was indicted in the US over bribery and fraud charges. US authorities said Adani and seven other defendants, including his nephew Sagar Adani, agreed to pay bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years and develop India's largest solar power plant project.
Bourses BSE and NSE have sought clarification from Adani Wilmar over a news report titled "Adani Group stocks in focus: Here is what the US SEC said". A reply from the 'Fortune' brand owner is awaited.
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.
Technical analysts said that Adani Wilmar looked 'bearish' in the near term. Support on the counter could be seen in the Rs 290-270 range.
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock is signaling a strong bearish trend. If the price falls below the range of Rs 290-285, it could lead to a further drop. It is advisable to adopt a cautious approach and to remain on the sidelines until there is a significant recovery in the stock's performance."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The counter looked weak on daily charts and can slip towards Rs 270 level in the near term. Resistance will be at Rs 300."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi, said, "Support will be at Rs 286 and resistance at Rs 325. A decisive move above Rs 325 level is required to trigger a further upside towards Rs 350. The expected trading range will be between Rs 275 and Rs 350 for the short term."
Sebi-registered research analyst AR Ramachandran said, "Adani Wilmar is bearish but also oversold on daily charts with next support at Rs 285. Investors should buy only if a daily close is above the resistance level of Rs 307 for an upside target of Rs 334 in the near term."
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 40.38 against a price-to-book (P/B) value of 4.77. Earnings per share (EPS) stood at 8.10 with a return on equity (RoE) of 11.80.
Adani Wilmar is an equal joint venture (JV) between the Adani Group and Singapore-based Wilmar. As of September 2024, promoters held an 87.87 per cent stake in the company.