Bears seem to have tighten their grip on three of the Adani Group-owned companies including Adani Power Ltd (APL), Adani Enterprises Ltd (AEL) and Adani Ports and Special Economic Zone Ltd (APSEZ) as their stock prices hit lowest levels of 52 weeks on the Bombay Stock Exchange (BSE) during trading hours on Monday.
Adani Power, which posted a net loss of Rs 293 crore for the fiscal 2012 against a profit of Rs 523.75 crore in the previous year, hit 52-week low of Rs 48.75 during intra-day trade on BSE on Monday. The APL stock, which has been on a constant slide for more than past two months has lost over 28.2 per cent during past one month.
Similarly, the ports operating arm of Adani Group, APSEZ too witnessed a similar fate on BSE on Monday as the stock hit lowest level in 52 weeks at Rs 111.60 during the intra-day trade. The stock has lost close to 12 per cent over the past one month.
APSEZ on Monday informed that the company has registered 20 per cent growth in net profit on a for the year ended March 31, 2012 at Rs 1,177 crore against Rs 986 crore in the previous year standalone basis. Total income for the year rose 26 per cent to Rs 2,525 crore compared to Rs 2008 crore in the previous year.
The stock of the flagship company of Rs 30,000-crore Adani Group, AEL also shed heavy losses on the exchange. The counter hit an intra-day low of Rs 235.25 during the trading session on Monday, which is a 52-week low level for the company. In past one month, the stock has lost over 21 per cent on the BSE.
According to analysts, negative investors sentiment towards Adani Group stocks is one of the prime reason for the heavy losses in the company stocks during recent past.
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"As per the market perception, Adani's name appearing along with the JSW Steel for the CBI probe for the alleged Karnataka illegal mining and export of iron ore issue has dented investors' sentiment. For APL, there are issues such as high cost of imported coal and uncertainty over government policy on coal allocation for power plants would be a reason for stock performance on the bourses," informed Rikesh Parikh, VP – equities, Motilal Oswal Securities Ltd.
However, the outlook looks grim for the Adani stocks amid lack of confidence from the institutional investors.
"There are not many institutional investors in the Adani group's stocks like APL and APSEZ, This dents their performance on the bourses. Outlook appears dull for these stocks as there is no lack of confidence among investors for the counters," said a research analyst with a noted brokerage in India on condition of anonymity.
The benchmark index, BSE Sensex fell on Monday at 16215.84 down by 0.47 per cent from its previous close.
APL stocks closed at Rs 50.15, down by 3.56 per cent, while APSEZ lost 5.41 per cent at Rs 114.45 on Monday. AEL ended at Rs 239.70 on BSE, down by 4.90 per cent over previous close.