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Adani Enterprises Ltd. Stock Analysis

Large Cap
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Focusing on establishing new businesses in the infrastructure and energy sector, Adani Enterprises Limited (AEL) is an incubator that remains motivated to convert opportunities to thriving businesses. Since listing in 1994, it has consistently delivered value...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
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
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 3.17%4.39%5%4.89%7.63%8.55%7.81%8.13%13.93%14.81%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,9275,28211,89111,78914,9168,1498,59511,24315,55716,209
Y-o-Y Gr. Rt.-80.5%125.1%-0.9%26.5%-45.4%5.5%30.8%38.4%4.2%
Adjusted EPS (Rs.) 1.833.364.192.255.515.762.53.336.886.25
Y-o-Y Gr. Rt.-83.6%24.7%-46.3%144.9%4.5%-56.6%33.2%106.6%-9.2%
Book Value per Share (Rs.) 88.8290.9494.2691.2493.4432.2334.2535.5429.5434.2
Adjusted Net Profit 202370460247605633275367756687
Net Op. Cash Flow (Rs. Cr.) -407-258-137588220-704-1569861,908601
Debt to Cash Flow from Ops -1.96-6.05-36.0311.1827.41-9.53-46.26.781.55.01
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
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 21%1.7%23.6%4.2%
Adjusted EPS 14.6%2.6%35.7%-9.2%
Book Value per Share -10.1-18.2-0.115.8
Share Price 3.5% 40.9% 47.9% 120.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 3.433.744.522.425.969.167.529.5521.1419.61
Operating Profit Margin (%) -4.292.882.35-1.113.266.037.666.658.66.5
Net Profit Margin (%) 6.8973.872.14.067.773.23.264.864.24
Debt to Equity 0.080.160.480.660.591.891.911.710.880.8
Working Capital Days 697573343429350562426311240219
Cash Conversion Cycle 120472817-20-23202712-3
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 74.92%
Institutions 21.48%
Non-Institutions 3.60%
Pledged *30.7836.1630.1029.4025.9331.9130.1149.7932.4220.63
* Pledged shares as % of Promoter's holding (%)

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.

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 40.9% 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.

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 -3.7% annually over the past ten years.

Focusing on establishing new businesses in the infrastructure and energy sector, Adani Enterprises Limited (AEL) is an incubator that remains motivated to convert opportunities to thriving businesses. Since listing in 1994, it has consistently delivered value - maximizing returns for stakeholders and proactively participating in nation building activities.

Over the past three decades, AEL has broadened its presence

Focusing on establishing new businesses in the infrastructure and energy sector, Adani Enterprises Limited (AEL) is an incubator that remains motivated to convert opportunities to thriving businesses. Since listing in 1994, it has consistently delivered value - maximizing returns for stakeholders and proactively participating in nation building activities.

Over the past three decades, AEL has broadened its presence across key industries, to emerge as a market leader. The company is now poised to nurture businesses that address issues of national importance. Businesses such as Adani Ports and Special Economic Zone Limited, Adani Power, Adani Transmission, Adani Green Energy and Adani Gas have been demerged from Adani Enterprises and/or independently listed on the Indian stock exchanges, to synergise growth and facilitate the nation building endeavours. To sustain its vision of an empowered nation, the company now remain focused on building infrastructure for Airports, Roads, Water, Data Centre and Solar manufacturing.

Business area of the company

The company is in the business of trading of coal and other commodities and Coal Mine Development and Operations (MDO).

Products and services offered by the company

  • Mining Services
  • Integrated Resources Management
  • Edible Oil & Foods
  • Agro
  • Solar Manufacturing
  • Defence & Aerospace
  • Road, Metro and Rail
  • Airports
  • Data Center
  • Water

Awards

  • Adani Skill Development Centre received the Special Jury Recognition Award at the Indian Chamber of Commerce Social Impact Awards in Kolkata in 2018.
  • SuPoshan won the silver award at the 53rd SKOCH State of Governance Summit 2018.
  • Adani Vizhinjam Port won the Indywood CSR Award.
  • GAIMS, Bhuj, received the Kayakalp Award by the Health and Family Welfare Department, Govt. of Gujarat in 2018.
  • Ek kaam Desh ke Naam organisation in Delhi, awarded the Platinum Award to Senior Citizen’s Health Card Scheme of Adani Foundation at Mundra
  • Adani Group won the top honour in the Metal and Mining category at the 18th Annual Greentech Safety Award 2019. This award is a testimony to the Company’s commitment to safety.
  • Adani Enterprises Ltd- Mining was bestowed with The Energy & Environment Foundation Global CSR Award 2019 in Platinum Category.
  • AEL received the ‘Platinum Award’ in the Mining sector, at the Apex India Occupational Health and Safety Award 2019.
  • At the 13th Indian Coal Markets Conference and Awards 2019 organised by hashtag#mjunction, Adani Group bagged 4 pivotal awards. The winning categories are 1) Coal Importer of the Year 2) Coal Transporter of the Year 3) Coal Port Performer of the Year 4) Coal Mining Contractor of the Year
  • AEL received the first prize for Safety Management Plan at the Safety Fortnight Programme 2019-20, organized by Directorate General of Mines Safety, Gare Pelma III Collieries Limited/Chhattisgarh State Power Generation Company Limited (GPIIICL/CSPGCL). This was the first time GPIIICL/ CSPGCL was participating in the programme.

Milestone

  • 1988- Started commodity trading.
  • 1994- Listed on BSE and NSE @ H150/ share.
  • 1994- Subscribed 25x.
  • 1995- Mundra Port commenced operations.
  • 1996- Bonus Issue 1:1.
  • 1999- Commencement of ICM business.
  • 1999- Signed JV with Wilmar, Singapore.
  • 1999- Bonus Issue 1:1
  • 2001- Started city gas distribution business
  • 2005- Awarded India’s first MDO
  • 2006- Stock Split of AEL into 10:1.
  • 2007- Adani Ports and SEZ Limited IPO Subscribed 116x.
  • 2007- FCCB issue of $250 million.
  • 2007- Green Silo Depot commissioned at 7 locations.
  • 2008- Acquired Bunyu Coal Mine Indonesia.
  • 2009- Adani Power Limited IPO subscribed 21x.
  • 2009- Bonus Issue 1:1.
  • 2010- Raised a QIP of $850 million.
  • 2010- Won first Coal MDO Contract.
  • 2010- Acquired Carmichael coal mine Australia.
  • 2015- Completed the demerger of APSEZ, APL and ATL.
  • 2017- Started manufacturing Solar PV panels.
  • 2018- Demerger of Adani Green Energy and Adani Gas Limited.
  • 2018- Fortune Largest Food FMCG brand in India.
  • 2019- 2nd largest IRM player in the world.
  • 2020- Adani Enterprises’ arm inks MoU with Airbus India to explore aerospace, aircraft services sector.
  • 2020- Adani Enterprises’ arms ink pact with AAI for development of airports.
  • 2020- Adani Enterprises receives LoA for Andhra Pradesh road project.
  • 2020- Adani Enterprises receives LoA for road project in Madhya Pradesh.
  • 2020- Adani Enterprises signs MoU with Tamil Nadu government.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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