New Delhi, August 7, 2023: Adani Green Energy (AGEL) witnessed a significant decline in its share price, plummeting by 12 percent to reach Rs 886.25 on the Bombay Stock Exchange (BSE) during Monday’s intra-day trade. This sharp drop was initiated by a block deal involving the exchange of over 40 million equity shares of the company. Furthermore, the stock has been consistently trending downwards for five consecutive days, experiencing a 19 percent fall within just one week. In contrast, the S&P BSE Sensex faced a mere 1.2 percent decline during the same period.
Despite this recent downturn, the current share price still stands at a level that is 101.72 percent higher than its 52-week low of Rs 439.35, which was recorded on February 28, 2023. However, AGEL has lost a substantial 65.57 percent of its value in comparison to its one-year high price of Rs 2,574.05, achieved on August 23 of the previous year.
As of 09:15 am, approximately 44.24 million shares, accounting for 2.8 percent of AGEL’s total equity, were traded on the BSE. However, the identities of the buyers and sellers involved in this transaction have not been immediately disclosed.
AGEL, a subsidiary of India’s Adani Group, boasts one of the most substantial renewable portfolios globally, comprising 20.4 GW of projects in various stages, including operational, under-construction, and awarded projects that cater to investment-grade counterparts. The company specializes in the development, construction, ownership, operation, and maintenance of utility-scale grid-connected solar and wind farm projects. Notable clients of AGEL include Solar Energy Corporation of India (SECI), National Thermal Power Corporation (NTPC), and various State Discoms.
Recent developments include AGEL’s announcement of its financial results for the first quarter of the fiscal year 2023-24 (Q1 FY24). The company reported a remarkable 50.93 percent year-over-year increase in net profit, reaching Rs 323 crore for the June quarter, as compared to Rs 214 crore during the corresponding period of the previous year. Additionally, its revenue from operations surged by 55.04 percent YoY to Rs 2,059 crore, up from Rs 1,328 crore in the same quarter last year. AGEL continues to possess India’s most extensive operating renewable energy portfolio, with a operational capacity of 8,316 MW.
Despite the encouraging financial performance, market sentiment remains uncertain, with an average target price of Rs 402 according to Trendlyne data, signaling a potential downside of 57 percent. The stock also boasts a one-year beta of 1.16, indicating elevated volatility.
It’s noteworthy that all Adani stocks have faced considerable fluctuations following the Hindenburg setback. In January 2023, US-based firm Hindenburg Research released a report making allegations of stock manipulation and accounting fraud against the conglomerate led by Gautam Adani. However, Adani vehemently denied all the accusations. While the Indian market regulator, SEBI, investigated potential violations in overseas investments in the Adani Group, no conclusive evidence was discovered. A panel appointed by the Supreme Court also expressed doubts regarding the potential for a resolution in the case.
