Adani Ports and Special Economic Zone has been one of the Adani Group‘s flagship entities. The stock has been under pressure today along with several other Group stocks, as they continue to deal with the aftermath of the explosive Hindenburg report released earlier this year.
The Investment: With the current stock price at ₹782, an investment of ₹10,000 would get you approximately 12 shares. If Adani Ports’ stock were to climb back to its 52-week high of ₹987.85, recorded on 20th September 2022, your investment would be worth approximately ₹12,620.73.
Background: Adani Ports’ shares experienced a dip in early trading recently, primarily due to the resignation of the company’s auditor, Deloitte. Deloitte had been auditing the Adani Group company since 2017 and decided to step down, seeking a broader remit over other Group firms. This move came shortly after the firm highlighted incomplete disclosures in certain transactions.
Analyst Reactions:
| Analyst | Rating | Price Target |
|---|---|---|
| Jefferies | Buy | ₹890 |
| CLSA | Buy | ₹878 |
Jefferies, in its analysis, stated that while auditor resignations typically cast a negative shadow, the appointment of another top-tier firm as a replacement is a reassuring move. They also emphasized that the company’s double-digit growth trajectory in the medium term is likely to persist.
CLSA echoed similar sentiments, emphasizing that Deloitte’s replacement by another leading global audit firm is a positive development. They continue to view Adani Ports as a lucrative buying opportunity, especially given its current discounted trading price.
The Group stocks are also under pressure today as SEBI was scheduled to submit its report to Supreme Court in the Adani Hindenburg matter. However, the market regulator has filed for another extension.
Price Action: During the mid-market trading hours on Monday, Adani Ports’ share price declined by 2.12%, trading at ₹784.05.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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