Adani Enterprises to exit Adani Wilmar JV; AEL stock jumped 8%

Shares of Adani Enterprises Ltd (AEL) on Monday witnessed a sharp upmove after the flagship Adani Group firm announced that it would exit the Adani Wilmar joint venture (JV). The stock surged 8.33 per cent to hit an intraday high of Rs 2,609.85. It was last seen 7.65 per cent higher at Rs 2,593.45. At this price, the scrip has slipped 11.09 per cent in calendar year 2024 which is drawing to a close.

"AEL will sell around 13 per cent in Adani Wilmar Ltd to achieve minimum public shareholding requirements and Wilmar International has agreed to acquire 31 per cent held by AEL in Adani Wilmar Ltd. With this, AEL will fully exit the Adani Wilmar Ltd platform. Adani's nominee directors step down from the Board of Adani Wilmar Ltd. Parties have agreed to take steps for change of name of 'Adani Wilmar Ltd'," the company stated in a release.

"The proceeds from the sale will be utilised for turbocharging growth in the core infrastructure platforms in energy & utility, transport & logistics and other adjacencies in primary industry," it added.

This has been a tumultuous year for Adani Group stocks, starting with US-based short seller Hindenburg Research's report to the recent indictment in the United States (US) over bribery and fraud charges. However, the Indian conglomerate has denied all these allegations.

On the technical play, a series of support levels for the AEL stock could be seen at Rs 2,500, followed by Rs 2,480, Rs 2,470, Rs 2,450 and Rs 2,420 levels. Immediate resistance may be seen in the Rs 2,650 zone.

"AEL shares have given a breakout above Rs 2,450-2,420 levels. The stock has potential to touch Rs 2,600-2,650 in the near term. Keep stop loss placed at Rs 2,450," market expert Raghvendra Singh told Business Today.

"The counter is likely to head for its bearish gap on daily charts. Intermediate resistance is placed at Rs 2,700, followed by Rs 2,800 from a short-term perspective. On the lower end, Rs 2,480-2,470 is now likely to cushion any shortcoming, followed by strong support around Rs 2,400 subzone," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Support will be Rs 2,500 and resistance Rs 2,650. A decisive move above the Rs 2,650 level may trigger a further upside towards Rs 2,700. The expected trading range will be between Rs 2,400 and Rs 2,700 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

The scrip traded higher than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but lower than the 50-day, 100-, 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 56.76. A level below 30 is defined as oversold while a value above 70 is considered overbought.

According to BSE data, the company's stock has a price-to-equity (P/E) ratio of 108.48 against a price-to-book (P/B) value of 16.68. Earnings per share (EPS) stood at 23.91 with a return on equity (RoE) of 15.38. Promoters held a 74.89 per cent stake in AEL.

On the other hand, Adani Wilmar shares shed 0.17 per cent to trade at Rs 329.50. The stock has declined 10.22 per cent on a year-to-date (YTD) basis.