SP Tulsian`s view on Adani Enterprise, Adani Port

SP Tulsian, sptulsian.com shares his view on Adani Enterprise and Adani Port.

Tulsian told CNBC-TV18, “Adani Enterprise, Rs 235-240 looks to be the good support because if you see it is the holding company for Adani Power and Adani Port if you take the value of the investments that was coming close to about Rs 22,000-23,000 crore which is the market cap of Adani Enterprise also at a price of Rs 230-240, but because of the negative report yesterday also we have seen the downgrade by one of the investment banker.”
He further added, “Similar situation is prevailing lot of the concerns or even the liquidity crisis have all started being talked by the market on account of the Adani Power and more specially in Adani Enterprise also, plus the fear of the inquiries and all that. So Adani Enterprise has gone out of focus and the continuous shorts are seen getting built up. It’s very much essential that some positive trigger comes where we can see the short covering coupled with some value buying, because definitely the stock is heavily short. No one is prepared to take a long position on that. So technical weakness is seen reflecting into the stock, but I think that on a fundamental basis in my view the stock has corrected much more than what it warrants. It is ruling at 90% of its fundamental value which is seen at around Rs 225-230.”