Adani Enterprises can move further down

ADANIENT CLSA has downgraded its rating on Adani Enterprises BSE -1.43 % to 'sell' from 'underperform' due to continued margin pressures in its mainstay coal trading business and potential write-down at its Carmichael coal venture.

"Coal trading Ebitda for 1Q was less than US11/T (Rs60/t) - down 76% YoY, with segment profit at three-year lows. ADE (Adani Enterprises) expects that the coal import volumes will not collapse as feared, due to cost benefits for customers near coastal areas ..

One can expect a Accelerated downward movement towards 68 levels before any support comes in and any weakness further from 68 can results in swift movement towards 60 levels