Check Before You Invest : Adani Enterprises Ltd

Q: Which industry/sub-sector does Adani Enterprises Ltd belong to?

Adani Enterprises Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q: Is Adani Enterprises Ltd a good quality company?

Adani Enterprises Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Adani Enterprises Ltd undervalued or overvalued?

Adani Enterprises Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 28.67, Historic Median: 149.67. Price to Book, Current: 5.2, Historic Median: 20.11. Price to Sales, Current: 14.15, Historic Median: 9.22. EV to EBITDA, Current: 74.16, Historic Median: 84.56

Q: Is Adani Enterprises Ltd a good buy now?

Adani Enterprises Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Adani Enterprises Ltd?

Adani Enterprises Ltd revenue growth is -16.6% for FY-2025, which is below its 5-year CAGR of 10.5%, indicating slower growth.

Q: Gross Profit margin of Adani Enterprises Ltd?

Adani Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is above its 5-year median of 6.7%, indicating increasing margins.

Q: Operating Profit Margin of Adani Enterprises Ltd?

Adani Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.76% for FY-2025, which is above its 5-year median of 8.05% indicating increasing margins.

Q: Net Profit Margin of Adani Enterprises Ltd?

Adani Enterprises Ltd Net Profit Margin is 22.66% for FY-2025, is above its 5-year median of 2.79%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.9, Historic Median: 6.7. Operating Profit Margin (%), Current: 10.76, Historic Median: 8.05. Net Profit Margin (%), Current: 22.66, Historic Median: 2.79

Q: Return on Asset of Adani Enterprises Ltd?

Adani Enterprises Ltd Return on Asset is 13.09%, which is above its 5-year historical median of 5.22%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Adani Enterprises Ltd?

Adani Enterprises Ltd Return on capital employed is 25.63% for FY-2025, which is above its 5-year historical median of 21.78%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Adani Enterprises Ltd

BSE: 512599 NSE: ADANIENT ISIN: INE423A01024

| Sector: Miscellaneous | Industry: Trading

Snapshot

Q.1 Which industry/sub-sector does Adani Enterprises Ltd belong to?

Adani Enterprises Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.

Q.2 Is Adani Enterprises Ltd a good quality company?

Adani Enterprises Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Adani Enterprises Ltd undervalued or overvalued?

Adani Enterprises Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	28.67	149.67
Price to Book	5.2	20.11
Price to Sales	14.15	9.22
EV to EBITDA	74.16	84.56

Q.4 Is Adani Enterprises Ltd a good buy now?

Adani Enterprises Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Adani Enterprises Ltd?

Adani Enterprises Ltd revenue growth is -16.6% for FY-2025, which is below its 5-year CAGR of 10.5%, indicating slower growth.

Q.2 Gross Profit margin of Adani Enterprises Ltd?

Adani Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.9% for FY-2025, which is above its 5-year median of 6.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Adani Enterprises Ltd?

Adani Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.76% for FY-2025, which is above its 5-year median of 8.05% indicating increasing margins.

Q.4 Net Profit Margin of Adani Enterprises Ltd?

Adani Enterprises Ltd Net Profit Margin is 22.66% for FY-2025, is above its 5-year median of 2.79%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	11.9	6.7
Operating Profit Margin (%)	10.76	8.05
Net Profit Margin (%)	22.66	2.79

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Adani Enterprises Ltd?

Adani Enterprises Ltd Return on Asset is 13.09%, which is above its 5-year historical median of 5.22%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Adani Enterprises Ltd?

Adani Enterprises Ltd Return on capital employed is 25.63% for FY-2025, which is above its 5-year historical median of 21.78%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Adani Enterprises Ltd?

Adani Enterprises Ltd Return on equity is 27.93% for FY-2025, which is above its 5-year historical median of 17.29%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Adani Enterprises Ltd?

Adani Enterprises Ltd Cash conversion cycle is -124 days, below its 5-year historical median of -44 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.58	1
ROE (%)	27.93	17.29
ROCE (%)	25.63	21.78
Cash Conversion Cycle	-124 days	-44 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Adani Enterprises Ltd?

Adani Enterprises Ltd Debt-to-Equity ratio is 0.47, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Adani Enterprises Ltd?

Adani Enterprises Ltd Debt to cash flow from operations is -3.4, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Adani Enterprises Ltd?

Q.1 Promoter shareholding and pledge status of Adani Enterprises Ltd?

Promoters hold 74.67% of the Adani Enterprises Ltd, with 0.80% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Adani Enterprises Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Adani Enterprises Ltd vs industry peers?

Adani Enterprises Ltd revenue CAGR is 10.50%, compared to the industry median CAGR of 10.50%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-16.6	10.5
Gross Profit Growth (%)	-19	32.7
Operating Profit Growth (%)	-9.7	28.3
Net Profit Growth (%)	112.9	54

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.58	1
ROE (%)	27.93	17.29
ROCE (%)	25.63	21.78
Cash Conversion Cycle (days)	-124.47	-44

Valuation & price assessment

Q.1 Stock return of Adani Enterprises Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 42% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	42%	14.8%	10.9%	14.8%

Q.2 Valuation ratios of Adani Enterprises Ltd vs historical?

The current P/E ratio of 28.67 is lower than its historical median of 149.67, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	28.67	149.67	33.62
Price to Book	5.2	20.11	1.57
Price to Sales	14.15	9.22	2.21
EV to EBITDA	74.16	84.56	14.09

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Check Before You Invest : Adani Enterprises Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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