ADANIENT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.1
| Stock Code | ADANIENT | Market Cap | 3,13,310 Cr. | Current Price | 2,408 ₹ | High / Low | 2,613 ₹ |
| Stock P/E | 131 | Book Value | 486 ₹ | Dividend Yield | 0.05 % | ROCE | 7.60 % |
| ROE | 5.35 % | Face Value | 1.00 ₹ | DMA 50 | 2,135 ₹ | DMA 200 | 2,229 ₹ |
| Chg in FII Hold | -0.84 % | Chg in DII Hold | -0.01 % | PAT Qtr | 344 Cr. | PAT Prev Qtr | 563 Cr. |
| RSI | 74.4 | MACD | 106 | Volume | 39,00,124 | Avg Vol 1Wk | 37,44,527 |
| Low price | 1,753 ₹ | High price | 2,613 ₹ | PEG Ratio | 10.3 | Debt to equity | 0.18 |
| 52w Index | 76.2 % | Qtr Profit Var | -42.8 % | EPS | 88.1 ₹ | Industry PE | 156 |
📈 Positive
- Large market capitalization of ₹3,13,310 Cr. ensures scale and liquidity.
- EPS of ₹88.1 provides earnings visibility.
- Debt-to-equity ratio of 0.18 reflects low leverage risk.
- Stock trading above DMA 50 (₹2,135) and DMA 200 (₹2,229), confirming bullish momentum.
- Strong trading volume (39 lakh vs avg 37 lakh) indicates active participation.
⚠️ Limitation
- Very high P/E of 131 vs industry average of 156, showing stretched valuations.
- Weak ROCE (7.60%) and ROE (5.35%) highlight poor efficiency.
- PEG ratio of 10.3 suggests growth priced expensively.
- Dividend yield of 0.05% offers negligible income support.
- RSI at 74.4 indicates overbought conditions.
- Quarterly PAT declined (₹344 Cr. vs ₹563 Cr.), raising concerns about earnings sustainability.
🚨 Company Negative News
- FII holdings declined (-0.84%), showing reduced foreign investor confidence.
- DII holdings slightly reduced (-0.01%), reflecting neutral domestic stance.
- Quarterly profit variation (-42.8%) highlights earnings pressure.
🌟 Company Positive News
- MACD positive (106), reinforcing bullish momentum.
- Stock trading near 76% of 52-week range, showing strong price action.
- Large market cap and diversified exposure provide long-term visibility.
🏭 Industry
- Industry P/E of 156 highlights sector-wide premium valuations.
- Infrastructure and diversified business exposure provide long-term growth potential.
- Sector outlook remains strong but requires consistent profitability to justify valuations.
📝 Conclusion
ADANIENT is a moderately favorable candidate for long-term holding, supported by scale and earnings visibility but constrained by high valuations and weak recent profit trends.
🔑 **Entry Zone:** ₹2,200–₹2,250, closer to DMA support and valuation comfort.
📌 **Long-term Holding Guidance:** Suitable for medium-to-long term (3–5 years) if earnings growth stabilizes. Risk lies in stretched valuations, declining quarterly profits, and overbought RSI; maintain strict stop-loss around ₹2,180.
This positions ADANIENT as a momentum-driven but valuation-stretched stock. Would you like me to extend this into a peer benchmarking overlay (ADANIENT vs Adani Ports, Adani Green, and Adani Power) to highlight relative valuation and efficiency gaps?