Adani Enterprises Ltd. (AEL), formerly known as Adani Exports started out as a partnership firm in 1988, and attained joint stock company status in 1993. AELâ€™s IPO in 1994 was oversubscribed 25 times over, a sign of the immense trust that shareholders and the market placed on it. Its...
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Adani Enterprises Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Adani Enterprises Ltd. should be analysed on a Standalone basis
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1. Is Adani Enterprises Ltd. a good quality company?
MoneyWorks4Me analysed the past 10-year performance of Adani Enterprises Ltd. and arrived at the following conclusion:
Past 10 year's financial track record indicates that Adani Enterprises Ltd. is a below average quality company. However, for specific investment actions please connect with your investment advisor.
2. Is current market price of Adani Enterprises Ltd. a good price to buy it?
The 5-year analysis of Adani Enterprises Ltd.'s performance infers:
Adani Enterprises Ltd. earnings have grown by 2.6%, whereas share price has appreciated 27.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.
3. What is Adani Enterprises Ltd. share price return in the past 10 years ?
We analysed the performance of Adani Enterprises Ltd. share prices over the last 10 years. Here is what we found out:
Adani Enterprises Ltd. share price has appreciated -7.3% annually over the past ten years.
Adani Enterprises Ltd. (AEL), formerly known as Adani Exports started out as a partnership firm in 1988, and attained joint stock company status in 1993. AELâ€™s IPO in 1994 was oversubscribed 25 times over, a sign of the immense trust that shareholders and the market placed on it. Its trade desks handle a diverse and voluminous product portfolio with expertise. Through time-conscious delivery, quality-driven process systems, complete reliability and uncommon levels
Adani Enterprises Ltd. (AEL), formerly known as Adani Exports started out as a partnership firm in 1988, and attained joint stock company status in 1993. AELâ€™s IPO in 1994 was oversubscribed 25 times over, a sign of the immense trust that shareholders and the market placed on it. Its trade desks handle a diverse and voluminous product portfolio with expertise. Through time-conscious delivery, quality-driven process systems, complete reliability and uncommon levels of commitment to customer satisfaction, AEL gained success and a rock-solid reputation in markets around the world. On one hand, AEL has achieved the critical mass needed to carry out sizable transactions demanded by its global clients, while on the other; it maintains the entrepreneurial drive that has given it an edge in Asia and Europe. From a single commodity company, AEL, today, has evolved into a brand representing a wide range of commodities and services.
AEL is the flagship company of the Adani Group. Accorded the status of a â€œFive Star Trading Houseâ€ by Directorate General of Foreign Trade, New Delhi, AEL is the first company to receive such a prestigious status in India.
Though based out of Ahmedabad, India, AEL has operations across the globe. 70 commodities. 60 countries. 30 offices, including 8 overseas offices in USA, UAE, China, Singapore, Indonesia, Mauritius and Myanmar. AEL is truly a diversified asset backed commodities trader, sourcing, producing, marketing and transporting them across the globe.
AEL aims at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills.
AEL has systematically de-risked its commodity trading portfolio to avoid pressure on its margins by venturing into asset backed commodity trading. AELâ€™s strategic forays into new businesses have garnered a significant share of these emerging high-growth markets in India. Today, the Adani Group has a diversified presence in five business sectors: Power, Oil & Gas, Real Estate, Agro & Metals and Minerals. The Shipping business acts as the backbone to its various businesses, exemplifying the required cohesiveness of knowledge based enterprise and a people driven entity.
With growth plans clearly chalked out, the Group intends to fully leverage its capacities and the vast available opportunities currently available in the new economy.
The Adani Group, is one of the fastest growing professionally owned enterprises in India and in the global arena.The journey from a being a Indiaâ€™s most trusted trading house to a diversified conglomerate is fast, yet memorable. Its growth has been organic leading to a synergy among its business units, making them more productive and competitive together.
Business area of the company includes:
Power Generation- The Company's operations in the Power sector primarily are concerned with Power trading. AEL has been awarded highest category 'F' inter-state license for trading in power by the Central Electricity Regulatory Commission (CERC) in 2003, wherein the company can undertake trading of more than 1,000 Million Units of electricity during the year with transmission priority on national grid, covering the jurisdiction of the entire country for next 25 years.
Coal- The Company's operations in the Power sector primarily are concerned with Coal trading. Adani Enterprises is the largest Integrated Coal Manager for a large body of Power Producers and other users. Although India is one of the largest coal consuming and producing nations in the world, it heavily depends on imported coal. As the power demand soars, the importance of coal increases in the overall Power value chain.
Agro - AEL is one the leading trading houses in agro commodities such as grains, pulses, castor and soya. It has presence in Europe, Japan, Korea, China, USA, Canada, Australia, South East Asia, Middle East, South Asia and almost all over India.
The Adani Group is engaged in the business of :
Special Economic Zones
IT enabled services.
The company has successfully completed foreign currency convertible bond issue USD 250 Mn for its business expansion plans. Company successfully launches the IPO for Mundra port and Special Economic Zone which oversubscribes by 115 times.
The company has received prestigious reorganization of â€œFive Star Export Houseâ€ on account of valuable contribution in countryâ€™s overall exports.Sales turnover has crossed Rs.13,500 Crores during FY 2004-05.The company has successfully completed foreign currency convertible bond issue of USD 38 Mn and proved its global reach.
The company has crossed Rs.7155 Crores sales turnover mark.Successfully disinvested its stake of Mundra Container Terminal to P & O Ports, Singapore. Introduction of new products like Iron Ore, Power Trading, Maize, Sesame Seeds, Sorghum, Barley etc.
2001 & 2003actual net worth at Rs 550 Crs.
During FY 2002-2003 Company has achieved turnover of Rs. 2873 Crs as against Rs.2188 crs for FY 1998-99 (a 30 % growth).Becomes the top net foreign exchange (NFE) earner of the country.The largest private sector player awarded with prestigious award of â€œGolden Super Star Trading Houseâ€.
1999 & 2000 declares a 1:1 bonus.Market capitalization of the company rises beyond Rs 1710 crs in wake of its scrip price touching Rs 775.60 per share (as on June 09, 2000), subscribers to the IPO see money growing by 1966 per cent in just 5 years.
During FY 1999-2000 Company has achieved all time high turnover of Rs. 2853.11 crs as against Rs.2188 crs for FY 1998-99 (a 30% growth).
1998 and Beyond: Period of Consolidation turnover leaps to Rs 2,418.6 crs for the FY 1997 - 98. Expands its trade basket, at present trades in more than 40 commodities and in 28 countries. Becomes the top net foreign exchange (NFE) earner of the country and the largest private sector Super Star Trading House in India.Jetty at Mundra Port becomes operational.
1994 - 1997: Period of Growth1997- Super Star Trading House status extended for another 3 years, unto 31st March, 2000, in spite qualification limits for this status being substantially enhanced.
1996 - Turnover crosses the coveted Rs 1,000 cr level; at Rs 1,134.6 crs for the FY 1995 â€“ 96.Declares a 1:1 bonus in November, 1996; paid up capital increases to Rs 11.02 crs.
Hits the primary market in September 1994 with its initial public offering (IPO) of 12.50 lakh equity shares of Rs 10 each at a premium of Rs 140 per share aggregating Rs 18.75 crs ; float oversubscribed by more than 25 times.
Accorded the status of â€œSuper Star Trading Houseâ€ on April 1, 1994 by the Ministry of Commerce, Government of India; the youngest trading house and the only one from the State of Gujarat to have been granted this status.1988 â€“ 1993: The Initial Years
Converted into a public limited company on 2nd March 1993 with a paid up capital of Rs 1 Crore.Accorded the status of â€œStar Trading Houseâ€ on April 1, 1993 by the Ministry of Commerce, Government of India.
Conceived as a partnership firm by Gautam S Adani with an initial capital of Rs 5 lakhs, posts a modest turnover of Rs 2.20 crs in the first year of its operation.
2005: The company received prestigious reorganization of 'Five Star Export House' on account of valuable contribution in countryâ€™s overall exports.
2006: The company commissions two floating crane barge.
2008: The company formed a joint venture company with Chemoil Energy for expansion of its bunkering business on pan India basis.
2009: The company received a Letter of Intent (LOI) for the Macchakatta Coal Block and LOA for Parsa Coal Block.
2010: Adani Enterprise firmed up its business plans in Japan by inking a long term tie up with the Kowa Company, which is Japanâ€™s leading diversified business group, for entailing joint venture co-operation in common areas of business like infrastructure and trade such as exports in both Japan and India.
2011: Adani Enterprises has been bestowed with the 'Superbrand' status by the Superbrands Council of India. The award was acknowledged by Pranav Adani, director, Adani Enterprises from Planning Commission Deputy Chairman Montek Singh Ahluwalia on July 28, 2011. 2011: In a bid to diversify its coal supply Adani Enterprises, the flagship company of Indiaâ€™s infrastructure conglomerate Adani Group, has acquired its first cargo of Russian coal. However, the company did not mention the name of the Russian supplier. The price was close to the current levels of South African coal.
AEL received â€œFive Star Trading Houseâ€ from Directorate General of Foreign Trade and became first company in India to receive this honour.
AEL was awarded Excellence in Management Award 2007 by Chief Minister of Gujarat.
AEL was honoured with status of â€œGolden Super Star Trading Houseâ€.
The awards and recognition to the Adani Group:
Awarded the status of export house in 2004
Niryat Shree Gold Trophy (2004-05)
Niryat Shree Gold Trophy (2003-04)
Awarded as â€œFive Star Export Houseâ€.
ICSI award for Excellence in Corporate Governance, â€™04 among the Top 25 Companies
Awarded the â€œGolden Super Star Trading Houseâ€.
Ranked 38th in Business Standardâ€™s list of 1000-Indiaâ€™s Corporate Giants (2003)