Adani Green Energy the renewable arm of Adani conglomerate has been taking the beating like other stocks of the group for some time now. Since the Hindenburg report on January 24, 2023, the stock has hit the lower circuit for 15 days. However, on last trading day of the month (February 28,2022) the stock rose 5 per cent giving some respite to the investors. According to a Reuters report (on February 28, 2022), Adani group plans to repay share backed loans up to US$ 790 million in order to enhance its credit profile after the Hindenberg saga.
Expensive valuation
The one year forward PE of the stock at current levels is 99.3 times whereas the peak valuation (one year forward) of the company was 529.6 times as on May 11,2022. The drop in the valuation is significant but still looks expensive compared to peers. For example, Tata Power (its closest comparable peer) is trading at one year forward PE of 17.56 times while its peak valuation (one year forward) was in June 2022 at 35.70 times.
Adani Green Energy stock has been seeing a continuous downside since the Hindenberg report since January 24 and has lost close to 75 per cent till date. Although some may call it a rebound, it would be better to wait and watch whether this price increase sustains and turns into a rally or not.
Adani Total Gas
The fortunes Adani Total Gas, the city gas distribution company of the conglomerate still looks gloomy as the stock price is still in a downward spiral with a lower circuit today as well. The stock has been hitting lower circuit for around 23 days from January 24.