Adani Green Energy tests new 52-week low, stock tanks 36% in 3 days

Adani Green Energy's shares continued its falling trend on Monday as the stock plunged another 19 per cent to hit a new 52-week low. during the early trading hours. The stock tested 1,202.55 level, merely shy from its circuit limit at 1,187.60 before making a recovery to Rs 1,309.20 at 10.10 am.

Adani Green Energy, Adani Group's renewable energy arm, once used to be the most valued company of Gautam Adani led conglomerate. Its marketcap was more than those of flagship companies of the group including Adani Enterprises and Adani Ports and Special Economic Zone.

Adani Green Energy's shares have tumbled 36 per cent in last three sessions, whereas the counter is trading about 61 per cent below 52-week high of Rs 3,048, hit in April 2022. Adani Green has lost 45 per cent of value in the last six months, whereas the stock is down 32 per cent in 2023 so far.

Adani Green Energy commanded a marketcap of Rs 4.82 lakh crore at its peaks, which was higher than a number of bluechips including Axis Bank, Bajaj Finance, Kotak Mahindra Bank, HCL Technologies, State Bank of India, Maruti Suzuki, Bharti Airtel and ITC. However, the company has been losings its charm.

Adani Green Energy was listed in June 2018 after the company was demerged from the Adani Enterprises. The stock has rallied about 45 times since then, hovering around Rs 1,350-level from Rs 30 mark in less than five years. It has turned an investment of Rs 10,000 into Rs 4.5 lakh even today.

Ahmedabad-headquartered Adani Green Energy is an Indian renewable energy company that operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world. The company manages 5,290 MW of wind energy and solar power plants including 46 operational projects in 11 states of India.

The company board of Adani Green Energy will meet on February 7, 2023 to consider and approve the results for the period ended on December 31, 2022. Earlier this month, Adani Green acquired 50 per cent equity in Essel Saurya Urja Company of Rajasthan (ESUCRL) for Rs 15 crore, while remaining 50 per cent will remain with the state government.

A sell-on-rise strategy is recommended in Adani Green. On the downside, the counter may find support around Rs 1,300 while upside resistance is intact at Rs 1,800, said Mahesh Prakot, Technical Research Analyst, Bonanza Portfolio.

 
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