Adani stocks continue their dream run; Adani Enterprises, Adani Wilmar up 10%

NEW DELHI: Adani stock extended their gains on Tuesday to the third consecutive session with flagship Adani Enterprises leading the pack with 10% gains. It was followed by Adani Wilmar which shot up nearly as much. All 10 stocks were trading in the green in early trade.

Others including Adani Ports and Special Economic Zone, Adani Transmission, Adani Total Gas, Adani Green Energy, Adani Power, ACC, Ambuja and New Delhi Television (NDTV) gained up to 6%.

Adani Group stocks added nearly Rs 80,000 crore in the overall market cap of its 10 listed companies on Monday riding on the Supreme Court-appointed expert committee's report which said that it could not conclude any regulatory failure on the part of Adani Group companies.

"Adani stocks had corrected hugely after the Hindenburg report. The Supreme Court expert panel in its report said that, at this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation,” Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

The high integrity of the members of the panel must have given confidence to investors to buy the beaten-down stocks, he opined.

"Some short covering also would have contributed to the rally. However, from the valuation perspective, Adani stocks are not undervalued," he added.

Adani Ports & Special Economic Zone stock remains a unanimous choice of analysts for long-term investment followed by Ambuja Cement. In a chat with ET Now, at least three analysts gave their thumbs up to Adani Ports based on its growth potential and strong fundamentals.

The other stock picks from the Adani stable included Adani Wilmar and ACC.

In stock markets, if there are no negatives, it is a positive, Deven Choksey, Founder and Promoter of KRChoksey Holdings told ET Now in response to a question if the stocks moved more than what was anticipated, post the submission of the expert committee report. In the case of Adani Group stocks, the beta effect is always higher, he said, explaining the rally seen in the last two sessions.

According to him Ambuja Cements and Adani Ports and Special Economic Zone have fairly good stability and visibility in terms of revenue and cash generation.

Meanwhile, market analyst Sudip Bandyopadhyay called Adani Ports a "fantastic company". He said that the future of this company is linked to the Indian economy. Despite a strong rally, Adani Ports is a fit candidate for a long-term view, the Chairman at Intraday Capital said.

Sudeep Shah, Deputy Vice President, Head of Technical & Derivatives Research (Equity & Currency) at SBI Securities also picked Adani Ports for investment.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)