⚠ 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: 2.9
| Stock Code | ADANIENT | Market Cap | 2,54,205 Cr. | Current Price | 2,202 ₹ | High / Low | 2,613 ₹ |
| Stock P/E | 109 | Book Value | 242 ₹ | Dividend Yield | 0.06 % | ROCE | 12.9 % |
| ROE | 12.1 % | Face Value | 1.00 ₹ | DMA 50 | 2,175 ₹ | DMA 200 | 2,323 ₹ |
| Chg in FII Hold | -0.08 % | Chg in DII Hold | -0.13 % | PAT Qtr | 563 Cr. | PAT Prev Qtr | 666 Cr. |
| RSI | 56.4 | MACD | -52.2 | Volume | 73,09,259 | Avg Vol 1Wk | 25,88,373 |
| Low price | 1,848 ₹ | High price | 2,613 ₹ | PEG Ratio | 2.03 | Debt to equity | 0.59 |
| 52w Index | 46.2 % | Qtr Profit Var | 4.55 % | EPS | 118 ₹ | Industry PE | 97.4 |
📊 Core Financials
- Revenue & Profitability: PAT fell from 666 Cr. to 563 Cr. (–4.55% variance), showing declining profitability.
- Margins: ROE at 12.1% and ROCE at 12.9% are moderate, not strong compared to peers.
- Debt: Debt-to-equity ratio of 0.59 indicates manageable leverage.
- Cash Flow: Profitability supports cash generation, but declining earnings raise concerns.
💹 Valuation Indicators
- P/E Ratio: 109 vs. industry average of 97.4 — highly overvalued.
- P/B Ratio: Current price (₹2,202) vs. book value (₹242) → ~9.1x, premium valuation.
- PEG Ratio: 2.03, suggesting growth is priced at a premium.
- Intrinsic Value: Valuation appears stretched given declining profitability.
🏢 Business Model & Competitive Advantage
- Adani Enterprises operates as a diversified conglomerate with businesses in infrastructure, energy, mining, and airports.
- Competitive advantage lies in scale, government contracts, and strategic positioning across multiple sectors.
📈 Technicals & Entry Zone
- DMA 50 (₹2,175) and DMA 200 (₹2,323) show consolidation near current price.
- RSI at 56.4 indicates neutral momentum; MACD negative suggests bearish sentiment.
- Entry Zone: Attractive only on dips near ₹2,000–2,100 for long-term investors.
- Long-Term Holding: Risky at current valuations; suitable only if earnings stabilize and improve.
✅ Positive
- Moderate debt-to-equity ratio (0.59).
- Diversified business model across infrastructure and energy.
- Strong market capitalization (₹2,54,205 Cr.) ensures stability.
⚠️ Limitation
- Extremely high P/E ratio (109) compared to industry average (97.4).
- Declining quarterly PAT (–4.55%).
- Dividend yield of 0.06% offers negligible shareholder return.
📉 Company Negative News
- FII holdings decreased (–0.08%) and DII holdings decreased (–0.13%), showing reduced institutional confidence.
- MACD negative (–52.2), indicating bearish momentum.
📈 Company Positive News
- EPS at ₹118 reflects strong earnings base despite volatility.
- Large trading volumes indicate strong liquidity in the stock.
🏭 Industry
- Infrastructure and energy sectors benefit from government spending and long-term demand.
- Industry average P/E (97.4) highlights Adani Enterprises’ premium valuation.
🔎 Conclusion
- Adani Enterprises shows scale and diversification but faces declining profitability and stretched valuations.
- Valuations are expensive compared to industry averages, making current levels risky.
- Recommendation: Accumulate only on dips near ₹2,000–2,100. Long-term holding viable only if earnings stabilize and ROE/ROCE improve.