Adani Green, Adani Ports and 31 other BSE500 stocks hit 52-week lows

Shares of Adani Green Energy, Adani Ports and Special Economic Zone, Indus Tower, Vodafone Idea, Aurobindo Pharma, TV18 Broadcast, Voltas and Whirlpool of India were among the total 33 stocks from the S&P BSE 500 index that hit their respective 52-week lows, after a sharp decline in equity market on Friday.

At 11:48 am; the S&P BSE 500 slipped 1.7 per cent, as compared to 1.3 per cent decline in the S&P BSE Sensex.

Shares of Berger Paints, Biocon, Delhivery, Dixon Technologies, Laurus Labs, Pifzer, Atul and GlaxoSmithkline Pharmaceuticals were other notable stocks which touched their respective 52-week lows in Friday’s intra-day trade.

Among individual stocks, two Adani Group stocks – Adani Green Energy (down 20 per cent at Rs 1,485) and Adani Ports (down 10 per cent to Rs 641.45) hit 52-week low and extended their Wednesday’s fall, after short-seller Hindenburg Research said that they held short positions in Adani Group companies through US-traded bonds and non-Indian-traded derivative instruments.

Meanwhile, Adani group said that the report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts.

“The timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming Follow-on Public Offering from Adani Enterprises, the biggest FPO ever in India,” the management added. CLICK HERE FOR STATEMENT

Besides, shares of Dixon Technologies (down 20 per cent to Rs 2,676) and Indus Tower (down 13 per cent to Rs 137.25) slipped more than 10 per cent after the companues reported a disappointing set of numbers for the quarter ended December 2022 (Q3FY23).

Individually, Dixon’s revenues declined 22 per cent year-on-year (YoY) to Rs 2,405 crore in Q3FY23, as consumer electronics and lighting sales declined 39 per cent YoY, and were the main segments that dented sales.

Furthermore, the management cut FY23 sales guidance to Rs 12,000-Rs 12,500 crore, from Rs 14,000-Rs 14,500 crore guided a few months earlier. Sales guidance for FY23 at the start of the year was around Rs 17,000-Rs 18,000 crore.

Analysts at Emkay Global Financial Services believe that the slowdown in some key segments hampered overall growth of brands, with additional impact from Dixon being a B2B supplier.

Meanwhile, Indus Tower posted a net loss of Rs 708 crore in Q3FY23, mainly due to provision for doubtful debt of Rs 2,201 crore and exceptional charge of Rs 493 crore. The company had made a net profit of Rs 872 crore in the September quarter (Q2FY23).

In Q3FY23, the company’s revenues were down 12.7 per cent quarter-on-quarter (QoQ) and 5 per cent year-on-year (YoY) at Rs 6,765 crore. The company posted 68.6 per cent YoY decline in earnings before interest, taxes, depreciation, and amortization (ebitda) to Rs 1,163 crore, with Ebitda margins down 36 percentage points YoY at 17.2 per cent. Moreover, the company provided against doubtful debts of Rs 2,270 crore against dues from Vodafone Idea.