Adani Enterprises Ltd (ADANIENT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Empire Inds.

Aspinwall & Co

3M India

Godrej Industrie

Adani Enterp.

DCM Shriram

TTK Healthcare

Balmer Lawrie

Sindhu Trade

Dhunseri Vent.

Swan Corp

Why is Adani Enterprises Ltd ?

Poor Management Efficiency with a low ROCE of 6.57%

The company has been able to generate a Return on Capital Employed (avg) of 6.57% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.62 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.62 times
The company has been able to generate a Return on Equity (avg) of 6.30% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 20.50% and Operating profit at 31.89%

Flat results in Jun 26

OPERATING CF(Y) Lowest at Rs 2,356.91 Cr
DPR(Y) Lowest at 1.80%
PAT(Latest six months) At Rs 1,378.86 cr has Grown at -21.11%

With ROCE of 4.5, it has a Expensive valuation with a 2.9 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 24.30%, its profits have fallen by -17.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Adani Enterp. should be less than 10%
Overall Portfolio exposure to Diversified should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Diversified)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Adani Enterp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Adani Enterp.

24.3%

0.69

35.47%

Sensex

-4.36%

-0.32

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.50%

EBIT Growth (5y)

31.89%

EBIT to Interest (avg)

1.50

Debt to EBITDA (avg)

7.35

Net Debt to Equity (avg)

1.14

Sales to Capital Employed (avg)

0.99

Tax Ratio

32.49%

Dividend Payout Ratio

1.80%

Pledged Shares

0.79%

Institutional Holding

21.26%

ROCE (avg)

6.71%

ROE (avg)

6.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

140

Industry P/E

Price to Book Value

5.11

EV to EBIT

56.70

EV to EBITDA

32.22

EV to Capital Employed

2.92

EV to Sales

4.54

PEG Ratio

Dividend Yield

0.04%

ROCE (Latest)

4.53%

ROE (Latest)

2.90%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

PBT LESS OI(Q)

At Rs 672.36 cr has Grown at 46.6% (vs previous 4Q average

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 11,809.42 cr

DEBT-EQUITY RATIO(HY)

Lowest at 1.32 times

NET SALES(Q)

Highest at Rs 32,923.98 cr

PBDIT(Q)

Highest at Rs 5,019.29 cr.

PAT(Q)

Highest at Rs 1,483.79 cr.

-20What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 2,356.91 Cr

DPR(Y)

Lowest at 1.80%

PAT(Latest six months)

At Rs 1,378.86 cr has Grown at -21.11%

ROCE(HY)

Lowest at 5.51%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.01 times

INTEREST(Q)

Highest at Rs 2,420.93 cr

NON-OPERATING INCOME(Q)

is 48.07 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs -8.91

Loading Valuation Snapshot...

Here's what is working for Adani Enterp.

Profit After Tax (PAT) - Quarterly

At Rs 1,483.79 cr has Grown at 152.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 587.01 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 672.36 cr has Grown at 46.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 458.67 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 32,923.98 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 32,923.98 cr has Grown at 31.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 25,117.15 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 5,019.29 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 1,483.79 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 11,809.42 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 1.32 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Adani Enterp.

Operating Cash Flow - Annually

Lowest at Rs 2,356.91 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Interest - Quarterly

At Rs 2,420.93 cr has Grown at 47.04%

Quarter on Quarter (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Dividend Payout Ratio (DPR) - Annually

Lowest at 1.80% and Fallen

each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Interest - Quarterly

Highest at Rs 2,420.93 cr

in the last five quarters and Increased by 47.04 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 48.07 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Earnings per Share (EPS) - Quarterly

Lowest at Rs -8.91

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 8.01 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio