Adani Enterprises shares rise over 3% in early trade; here’s why

Shares of Adani Enterprises Ltd rose over 3% today after the flagship firm of Adani Group said the firm has incorporated a wholly owned subsidiary on April 7, 2023 to carry on business to develop, erection, operate of coal washery including coal handling systems. The company will begin operations in due course.

Adani Enterprises stock rose up to 3.12% to Rs 1858.45 against the previous close of Rs 1802.30 on BSE. However, the stock is down 52.14 per cent this year. In a year, the Adani Enterprises stock has lost 16%. Adani Enterprises stock opened marginally higher at Rs 1810.10 against the previous close of Rs 1802.30 on BSE.

Adani Enterprises’ market cap rose to Rs 2.10 lakh crore in the current trading session. Total 1.43 lakh shares changed hands amounting to a turnover of Rs 26.29 crore on BSE.

At the current level, the stock is trading 56% lower than the 52-week high of Rs 4189.55 reached on December 21, 2022 on BSE. The stock hit a 52 week low of Rs 1017.10 on February 3, 2023. On the other hand, the stock has zoomed 82.69% from the 52 week low of Rs 1017.10 hit on February 3, 2023.

In terms of technicals, the relative strength index (RSI) of Adani Enterprises stands at 49.5, signaling it's trading neither in the overbought nor in the oversold zone. Adani Enterprises stock has a one-year beta of 1.8, indicating very high volatility during the period. Adani Enterprises shares are trading higher than the 5 day and 20 day moving averages but lower than 50 day, 100 day and 200 day moving averages.

“The company has incorporated a wholly owned subsidiary (WOS) namely Pelma Collieries Limited (PCL), on 7th April 2023, with an initial Authorized Share Capital of Rs.10,00,000/- and Paid-up Share Capital of Rs.5,00,000/-, interalia, to carry on business to develop, erection, operate of coal washery including coal handling systems and to do all necessary and incidental activities in this regard. PCL will commence its business operations in due course,” said the firm in a communication to bourses on April 11.

The Adani Group firm is down 56% from its 52-week high after the Hindenburg Research report that jolted the group’s fortunes and future plans. The report came on January 24 just before Adani Enterprises’ Rs 20,000 crore follow-on-public offer (FPO) opened. The

Hindenburg report accused the Adani Group of accounting fraud and stock manipulation. The Adani Group had denied Hindenburg’s allegations as being “malicious”, “baseless”, and a “calculated attack on India.”

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