Adani Ports shares down 12% from 52-week high; is it time to accumulate?

Shares of Adani Ports and Special Economic Zone Ltd slipped 1.19 per cent to hit a day low of Rs 1,423 in Tuesday's trade. At this day-low value, the scrip has fallen 11.50 per cent from its 52-week high price of Rs 1,607.95, a level seen on June 3, 2024. Despite the mentioned drop, it has climbed around 36 per cent on a year-to-date (YTD) basis.

The country's largest port developer-cum-operator has recently signed a concession agreement with DPA to develop a multipurpose berth at Gujarat's Kandla port. "Berth No. 13 (at Deendayal Port) is 300m long and offers 5.7 MMT capacity annually. It is likely to be commissioned in FY27," Adani Ports stated.

Analysts said the counter is in a consolidation phase after scaling its one-year high levels. Investors with a high-risk appetite can consider accumulating it on dips, one of them suggested.

"Adani Ports has been in a medium-term consolidation after touching Rs 1,600 levels. Being India's largest port operator, the company's revenues are expected to do well in the coming quarters. Investors with a high-risk appetite and an understanding of the high-beta nature of Adani Group stocks can buy this counter on dips. Existing investors can hold on to it with a long-term view," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Technically, support on the counter could be seen in the Rs 1,420-1,400 range. And, a decisive close above Rs 1,475-1,500 levels is required for further upside in the near term.

"The stock has undergone a time-wise corrective phase. It has failed to showcase any decisive traction from the long haul. On the higher end, Rs 1,480-1,500 is likely to be seen as a hurdle. While on the lower end, the Rs 1,420-1,400 zone is likely to cushion any upcoming blips. A range breakout could only trigger fresh momentum in the counter in the comparable period," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Adani Ports has strong support at Rs 1,419. And, a close above its resistance level of Rs 1,469 is required for upside targets of Rs 1,533-1,621 in the near term," said Sebi-registered research analyst AR Ramachandran.

"The stock is trading around the previous low level of Rs 1,420 and if it slips below, a further slide can be expected with Rs 1,360 as the next support level. At the same time, for the bias to improve, it would need to move past Rs 1,475 to establish some conviction," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

As of June 2024, promoters held a 65.89 per cent stake in Adani Ports.