NSEI:ADANIENT

Stock Analysis Report

Executive Summary

Adani Enterprises Limited, together with its subsidiaries, engages in the coal trading, coal mining, oil and gas exploration, ports, multi-modal logistics, power generation and transmission, gas distribution, and edible oil and agro commodities businesses in India and internationally.

Snowflake

Fundamentals

Good value with proven track record.

Risks

  • Adani Enterprises is covered by less than 3 analysts.

Share Price & News

How has Adani Enterprises's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

NSEI:ADANIENT

0.7%

IN Trade Distributors

-0.7%

IN Market


1 Year Return

-34.6%

NSEI:ADANIENT

-36.0%

IN Trade Distributors

-12.1%

IN Market

ADANIENT outperformed the Trade Distributors industry which returned -36% over the past year.

ADANIENT underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

ADANIENTIndustryMarket
7 Day0.3%0.7%-0.7%
30 Day-1.0%-6.8%-5.7%
90 Day11.4%0.004%-4.3%
1 Year-0.4%-34.6%-19.6%-36.0%-10.4%-12.1%
3 Year211.1%72.6%28.3%5.4%19.0%13.0%
5 Year-51.5%-73.7%19.0%-67.4%37.9%25.2%

Price Volatility Vs. Market

How volatile is Adani Enterprises's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Adani Enterprises undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Adani Enterprises's share price is below the future cash flow value, and at a moderate discount (> 20%).

Adani Enterprises's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Adani Enterprises is good value based on earnings compared to the IN Trade Distributors industry average.

Adani Enterprises is good value based on earnings compared to the India market.


Price Based on Expected Growth

Adani Enterprises earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Adani Enterprises is overvalued based on assets compared to the IN Trade Distributors industry average.


Next Steps

Future Growth

How is Adani Enterprises expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

-3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Adani Enterprises's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Adani Enterprises's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Adani Enterprises's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

Adani Enterprises's earnings are expected to decrease over the next 1-3 years, this is below the India market average.

Adani Enterprises's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Adani Enterprises will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Adani Enterprises performed over the past 5 years?

-35.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Adani Enterprises's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Adani Enterprises's 1-year earnings growth exceeds its 5-year average (28.7% vs -35%)

Adani Enterprises's earnings growth has exceeded the IN Trade Distributors industry average in the past year (28.7% vs 14.6%).


Return on Equity

Adani Enterprises has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Adani Enterprises used its assets more efficiently than the IN Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Adani Enterprises has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Adani Enterprises's financial position?


Financial Position Analysis

Adani Enterprises is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Adani Enterprises's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Adani Enterprises's level of debt (74.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (254.8% vs 74.2% today).

Debt is well covered by operating cash flow (29.6%, greater than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2x debt.


Next Steps

Dividend

What is Adani Enterprises's current dividend yield, its reliability and sustainability?

0.30%

Current Dividend Yield


Dividend Yield and Payments Analysis

Adani Enterprises's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.63%).

Adani Enterprises's dividend is below the markets top 25% of dividend payers in India (2.52%).

Adani Enterprises is not paying a notable dividend for India, therefore no need to check if the payments are stable.

Adani Enterprises is not paying a notable dividend for India, therefore no need to check if the payments are increasing.


Current Payout to Shareholders

No need to calculate the sustainability of Adani Enterprises's dividends as it is not paying a notable one for India.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Adani Enterprises's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Rajeshbhai Adani (55yo)

₹41,900,000

Compensation

Mr. Rajeshbhai Shantilal Adani, B.Com., serves as the Managing Director at Adani Wilmar Limited. Mr. Adani has been the Managing Director of Adani Power Limited since April 01, 2008 and served as its Chief ...


CEO Compensation Analysis

Rajeshbhai's remuneration is about average for companies of similar size in India.

Rajeshbhai's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.5yrs

Average Tenure

57yo

Average Age

The average tenure for the Adani Enterprises management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.8yrs

Average Tenure

59yo

Average Age

The average tenure for the Adani Enterprises board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jatin Jalundhwala (59yo)

    Joint President of Legal

    • Compensation: 14.50m
  • Rajeshbhai Adani (55yo)

    MD & Director

    • Compensation: 41.90m
  • Gautam Adani (57yo)

    Executive Chairman

    • Compensation: 21.10m
  • Pranav Adani (41yo)

    Executive Director

    • Compensation: 29.90m
  • Vinay Goel (46yo)

    CEO of Coal & Mining and Executive Director

    • Compensation: 154.00m
  • Panda Kishore (64yo)

    Group President of Human Resources

    • Tenure: 11.5yrs
  • Jugeshinder Singh

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Sudipta Bhattacharya (52yo)

    Group CTO & CEO of Adani Group North America

  • Pradeep Bhargava (60yo)

    Head of Management Assurance & Audit Services

  • Paresh Chaudhry (63yo)

    Group President of Corporate Communication

    • Tenure: 1.5yrs

Board Members

  • Hemant Nerurkar (71yo)

    Independent Non-Executive Director

    • Tenure: 4.0yrs
    • Compensation: 1.76m
  • Gautam Adani (57yo)

    Executive Chairman

    • Compensation: 21.10m
  • Rajeshbhai Adani (55yo)

    MD & Director

    • Compensation: 41.90m
  • Pranav Adani (41yo)

    Executive Director

    • Tenure: 4.3yrs
    • Compensation: 29.90m
  • Vinay Goel (46yo)

    CEO of Coal & Mining and Executive Director

    • Tenure: 2.0yrs
    • Compensation: 154.00m
  • Vijaylaxmi Joshi (61yo)

    Independent Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: 1.61m
  • Narendra Mairpady (65yo)

    Additional Non Executive Independent Director

    • Tenure: 1.7yrs
    • Compensation: 1.42m
  • Venkataraman Subramanian (71yo)

    Independent Non-Executive Director

    • Tenure: 3.0yrs
    • Compensation: 1.81m

Company Information

Adani Enterprises Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adani Enterprises Limited
  • Ticker: ADANIENT
  • Exchange: NSEI
  • Founded: 1988
  • Industry: trading companies and distributors
  • Sector: capital goods
  • Market Cap: ₹146.000b
  • Shares outstanding: 1.10b
  • Website: Click here

Location

  • Adani Enterprises Limited
  • Adani House
  • Near Mithakhali Six Roads
  • Ahmedabad
  • Gujarat
  • 380009
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
512599BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2001
ADANIENTNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2001

Biography

Adani Enterprises Limited, together with its subsidiaries, engages in the coal trading, coal mining, oil and gas exploration, ports, multi-modal logistics, power generation and transmission, gas distributi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:52
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.