3 Adani stocks to get into at current levels: Vinit Bolinjkar

“Till the MSCI issue is sorted out, the non-F&O stocks like Adani Green, Adani Total and Adani Power might be under pressure along with Wilmar. But once the dust settles, Adani Ports, Adani Green along with Gujarat Ambuja are the stocks once can get into at current levels,” says Vinit Bolinjkar, Head of Research, Ventura Securities.

The elephant in the room is clearly the Adani Group of stocks. What are your recommendations to investors at this point of time? What should they do?
Before we get to the recommendations part, I would like to say that I have heard on the Street that the QIB book for the Adani Enterprise FPO has been subscribed to almost Rs 4,000 odd crore. Given the run rate, I believe the spill over from QIB and HNI should make do for the retail book. One of the key concerns for the Adani group of stocks is that the Adani FPO goes through.

Having said that, I believe that MSCI has sent out questionnaires to some of its clients on the Adani pack of stocks and depending on the kind of information flow that they get from the investors, there could be a little bit of overhang whether the stock continues to remain in the MSCI list of recommendations of portfolios. So till that is sorted out, the non-F&O stocks that is Adani Green, Adani Total and Adani Power might be under pressure along with Wilmar.

But once the dust settles, Adani Ports, Adani Green are two other stocks which to my mind serve as very good stocks to get into at current levels along with Gujarat Ambuja.

In the case of Gujarat Ambuja, the lending is done in the promoter company and the dividends coming from the cash flows of ACC and Ambuja are in my opinion sufficient to service the debt that has been lent to the Gujarat Ambuja stock. I believe this correction is vastly overdone and once this budget and the federal decision is out of the way, we will see the stocks claw back once again.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)