ADANIENT - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.6

Here’s a detailed analysis of Adani Enterprises Ltd (ADANIENT)

🧾 Core Financials

Profitability & Growth

Quarterly PAT declined from ₹601 Cr to ₹504 Cr — a 16.8% drop, indicating short-term margin pressure.

EPS: ₹51.6 — decent, but not strong enough to justify current valuation.

ROE: 12.1% and ROCE: 12.9% — moderate returns, below top-tier industrial benchmarks.

Debt & Liquidity

Debt-to-equity: 0.48 — manageable leverage for a conglomerate.

Dividend Yield: 0.05% — negligible, reflecting reinvestment focus.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 122 77.4 Extremely overvalued

P/B Ratio ~10.4 ~5.2 High premium to book value

PEG Ratio 2.27 ~1 Price exceeds growth potential

Intrinsic Value ~₹1,800–₹2,000 — Overpriced vs fundamentals

The stock trades at a significant premium, driven more by future growth expectations and group synergies than current earnings.

🏢 Business Model & Competitive Edge

Core Operations: Infrastructure development, airports, data centers, mining, and green hydrogen.

Strengths

Diversified portfolio across high-growth sectors.

Strategic positioning in India’s infrastructure and energy transition.

Risks

High valuation and earnings volatility.

FII outflows (-0.16%) may reflect caution on governance or pricing.

📉 Technical & Entry Zone

Current Price: ₹2,402

DMA 50/200: ₹2,385 / ₹2,483 — trading near key averages.

RSI: 58.3 — neutral zone.

MACD: 6.38 — mild bullish momentum.

Suggested Entry Zone: ₹2,000–₹2,200 range, ideally near ₹2,025 support or intrinsic value.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to India’s infrastructure boom.

Avoid fresh entry at current levels unless valuation cools.

Ideal for long-term only if

Earnings growth resumes and ROE improves above 15%.

Valuation normalizes below P/E 60 and PEG < 1.5.

Would you like a peer comparison with L&T or a breakdown of Adani’s green hydrogen roadmap?

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