Adani Green Energy shares slip 72% in a month; trading in oversold zone

Shares of Adani Green Energy have plunged 72 per cent since January 24 this year when Hindenburg Research made allegations of stock manipulation and accounting fraud scheme against the Adani Group over the course of the last few decades. However, the Adani Group denied Hindenburg’s allegations as being “malicious”, “baseless”, and a “calculated attack on India. The stock, which closed at Rs 1913.55 on January 24, was trading at Rs 539.30 (a fresh 52-week low) today, implying a correction of 71.81% in nearly a month.

In the current trading session, shares of Adani Green Energy were stuck in the lower circuit of 5% at Rs 539.30 against the previous close of Rs 567.65 on BSE.

The stock has lost 14.25% in the last three sessions.

Earlier, the stock opened 4.86% lower at Rs 540.05 against the previous close of Rs 567.65. In a year, the stock has fallen 72.67 per cent and lost 72.09 per cent in 2023.

Total 1.10 lakh shares of the firm changed hands amounting to a turnover of Rs 5.95 crore on BSE. The stock hit its 52-week high of Rs 3048 on April 19, 2022.

In terms of technicals, the relative strength index (RSI) of Adani Green Energy stock stands at 12.5, signaling it's trading in the oversold zone. Adani Green stock has a one-year beta of 1.2, indicating high volatility during the period. Adani Green shares are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

Abhijeet from Tips2trade said, "Adani Green looks very oversold on the daily charts. Investors should buy only if a daily close is above Rs 710 for targets of Rs 860-952. The next support will be at Rs 468."

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has witnessed huge erosion from the levels of Rs 2000 zone and recently has been hitting the lower circuits to breach most of the support levels. Now, technically speaking, the next major support zone visible is near Rs 300-325 levels but at the same time, currently the stocks of Adani group are trading with weak sentiments and so technically one would not be able to comment much on this."

In the third quarter of this fiscal, Adani Green Energy’s profit surged 110.20 per cent to Rs 103 crore in Q3FY23 over Rs 49 crore in Q3FY22. Gross sales of the company zoomed 49 per cent to Rs 1959 crore from Rs 1391 crore during the same period.

EBIDTA of the firm slipped 18.22% to Rs 853 crore in the December quarter against Rs 1043 crore in the corresponding period of the previous fiscal.

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