Shares of Adani Ports were crashing in early trade on Monday as the company’s auditor Deloitte stepped down.
What Happened: Deloitte which had been the auditor for the Adani Group company since 2017 resigned as it wanted a wider remit over other Group firms. The resignation comes weeks after the firm flagged incomplete disclosures in certain transactions.
The ports giants in an exchange filing said that Deloitte’s reasoning behind the resignation was “not convincing or sufficient to warrant such a move.” The company has appointed MKSA & Associates to replace the firm.
Analyst Reactions: Jefferies maintained its ‘buy’ rating in the stock with a price target of ₹890. The research firm said that while auditor resignations are usually viewed as negative the appointment of another top firm as replacement is a positive step. The firm added that operationally, the company’s double-digit growth in the medium term should continue.
CLSA also maintained its buy rating for the stock with a price target of ₹878. The global brokerage firm also reiterated that Deloitte was replaced by one of the top global audit firms. The brokerage said that it continues to see Adani Ports as a buying opportunity as the stock trades at a discount.
Price Action: Adani Ports’ share price was down 3.63% to trade at ₹772 in early trade on Monday.
Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.
Read Next: Nykaa Shares Plunge After Q1: Here’s What Analysts Want You To Do
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.