⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ADANIENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.0
| Stock Code | ADANIENT | Market Cap | 2,31,719 Cr. | Current Price | 2,008 ₹ | High / Low | 2,613 ₹ |
| Stock P/E | 99.3 | Book Value | 242 ₹ | Dividend Yield | 0.06 % | ROCE | 12.9 % |
| ROE | 12.1 % | Face Value | 1.00 ₹ | DMA 50 | 2,122 ₹ | DMA 200 | 2,271 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | -0.13 % | PAT Qtr | 563 Cr. | PAT Prev Qtr | 666 Cr. |
| RSI | 41.3 | MACD | -49.9 | Volume | 10,90,378 | Avg Vol 1Wk | 13,53,292 |
| Low price | 1,848 ₹ | High price | 2,613 ₹ | PEG Ratio | 1.85 | Debt to equity | 0.59 |
| 52w Index | 20.9 % | Qtr Profit Var | 4.55 % | EPS | 118 ₹ | Industry PE | 124 |
📊 Core Financials
- Profitability: PAT declined from ₹666 Cr. to ₹563 Cr. (Qtr Profit Var: -4.55%)
- Margins: ROE at 12.1% and ROCE at 12.9% indicate moderate efficiency
- Debt: Debt-to-equity ratio at 0.59 shows manageable leverage
- Cash Flow: EPS at ₹118 supports earnings but relative to valuation is modest
💰 Valuation Indicators
- P/E Ratio: 99.3 vs Industry PE of 124 → still expensive but lower than peers
- P/B Ratio: Current Price ₹2,008 vs Book Value ₹242 → ~8.3x book
- PEG Ratio: 1.85 → growth priced at a premium
- Intrinsic Value: Valuation stretched compared to fundamentals
🏢 Business Model & Health
- Market Cap: ₹2,31,719 Cr. reflects large diversified presence across infrastructure, energy, and resources
- Dividend Yield: 0.06% provides negligible shareholder return
- Competitive Advantage: Diversified conglomerate with strong execution capabilities
- Overall Health: Large scale and diversification help stability, but profitability metrics are modest
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹1,800–1,900 if market correction occurs
- Long-Term Holding: Suitable for long-term investors only if earnings growth accelerates and valuations normalize
✅ Positive
- Large diversified business model with strong market presence
- Debt-to-equity ratio (0.59) is manageable
- Industry PE (124) higher than company PE, suggesting relative discount
⚠️ Limitation
- High P/E ratio (99.3) despite lower than industry
- ROE (12.1%) and ROCE (12.9%) are modest
- Dividend yield (0.06%) is negligible
📉 Company Negative News
- Quarterly PAT declined to ₹563 Cr.
- FII holding decreased (-0.08%) and DII holding decreased (-0.13%)
📈 Company Positive News
- Strong diversified portfolio across sectors
- Stock trading near DMA levels (50DMA ₹2,122, 200DMA ₹2,271) showing relative stability
🏭 Industry
- Industry PE: 124, higher than ADANIENT’s PE
- Conglomerate sector benefits from infrastructure and energy demand
🔎 Conclusion
ADANIENT demonstrates scale and diversification, but profitability metrics remain modest and valuations are stretched.
While its P/E is lower than industry peers, it is still expensive relative to fundamentals.
The stock is suitable for long-term investors with high risk tolerance, with entry recommended near ₹1,800–1,900 to balance risk and reward.