Adani Wilmar share price: The stock tanked 5.29 per cent to hit a 52-week low of Rs 303.45. Today's plunged came after it was reported that India's accounting regulator -- The National Financial Reporting Authority (NFRA) -- started investigating an auditing firm named SR Batliboi. Batliboi audits five companies that are part of billionaire Gautam Adani's conglomerate. These five Adani firms are Adani Power, Adani Green Energy, Adani Wilmar, ACC and Ambuja Cements.
Shares of Adani Wilmar Ltd fell sharply in Thursday's trade, extending their fall for the sixth straight session. The stock tanked 5.29 per cent to hit a 52-week low of Rs 303.45. Today's plunged came after it was reported that India's accounting regulator -- The National Financial Reporting Authority (NFRA) -- started investigating an auditing firm named SR Batliboi. Batliboi audits five companies that are part of billionaire Gautam Adani's conglomerate. These five Adani firms are Adani Power, Adani Green Energy, Adani Wilmar, ACC and Ambuja Cements.
In response to the report on NFRA, an Adani Group spokesperson said, "We strongly reject any suggestion that Adani Group and its businesses have not acted as per the regulations and accounting standards of the jurisdictions in which we operate. The Adani Group has always conducted its business in compliance with all applicable laws and regulations and is confident about its practices, governance and disclosures."
On technical setup, support on the counter could be seen at Rs 300, followed by Rs 290 levels. "If these support levels are taken out, then it may see initial public offering (IPO) listing price of Rs 227," an analyst said. On the flip side, resistance may be seen near Rs 320, followed by Rs 325 and Rs 350 levels.
AR Ramachandran from Tips2trades said, "Adani Wilmar looks bearish but also oversold on daily charts with strong resistance at Rs 320.35. Investors should buy only if a close is above this resistance. Next support will be at Rs 290."
Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Selling pressure in Adani Wilmar has been seen for the last 3-4 months. As we advance, Rs 300, followed by Rs 290, would be the support levels. If taken out, then we might see its IPO listing price of Rs 227. Resistance is seen near Rs 325, followed by Rs 350. Since the daily DMI (Directional Movement Index) is negative, we could see constant selling pressure."
The counter was trading lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 25.22. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 104.50 against a price-to-book (P/B) value of 5.21.
The scrip has an analyst target price of Rs 445, Trendlyne data showed, suggesting a potential upside of 42 per cent in a year. It has a one-year beta of 1.6, indicating high volatility on the counter.
In a separate development, another stock from the Adani Group slumped today to touch one-year low level. The scrip is Adani Total Gas Ltd. It fell 5.15 per cent to hit a low price of Rs 521.95.
The stock was trading lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day SMAs. The counter's 14-day RSI came at 15.42. The company's stock has a P/E ratio of 112.15 against a P/B value of 20.60. It has a one-year beta of 1.23, indicating high volatility.
