Adani Enterprises Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.
Growth
Compounded Sales Growth
10 Years:
6%
5 Years:
19%
3 Years:
35%
TTM:
-12%
Compounded Profit Growth
10 Years:
5%
5 Years:
43%
3 Years:
48%
TTM:
49%
Stock Price CAGR
10 Years:
33%
5 Years:
83%
3 Years:
26%
1 Year:
18%
Return on Equity
10 Years:
7%
5 Years:
8%
3 Years:
8%
Last Year:
10%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
110
110
110
110
110
110
110
110
110
110
114
114
Reserves
21,286
23,647
25,618
13,268
14,026
14,979
14,646
16,837
17,049
22,147
32,937
38,962
Borrowings
69,332
71,980
83,571
19,169
20,846
17,637
11,243
12,419
16,227
41,604
53,200
65,310
Other Liabilities
21,143
22,365
21,420
9,132
12,630
23,679
16,537
17,509
18,231
37,726
55,027
56,200
Total Liabilities
111,871
118,102
130,718
41,679
47,611
56,405
42,536
46,875
51,617
101,586
141,278
160,586
Fixed Assets
48,770
70,579
83,834
10,473
13,668
10,555
9,020
10,476
10,838
30,123
56,881
65,978
CWIP
29,248
13,574
6,733
7,705
7,731
5,526
5,765
7,347
8,825
23,544
24,025
35,180
Investments
323
288
744
805
1,042
1,461
1,511
1,952
5,503
4,292
6,310
8,701
Other Assets
33,529
33,661
39,407
22,696
25,170
38,864
26,240
27,099
26,451
43,627
54,062
50,728
Total Assets
111,871
118,102
130,718
41,679
47,611
56,405
42,536
46,875
51,617
101,586
141,278
160,586
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
7,666
8,228
8,532
5,112
774
2,942
3,236
2,454
4,043
1,385
17,626
10,312
Cash from Investing Activity
-14,790
-8,007
-11,465
-1,825
-1,460
-7,649
2,487
-1,082
-8,611
-17,041
-15,459
-18,767
Cash from Financing Activity
7,199
-1,109
3,445
-3,448
716
5,120
-6,158
-221
3,109
15,901
-1,198
8,879
Net Cash Flow
75
-888
512
-161
30
413
-436
1,151
-1,459
246
970
424
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
5.00
-63.00
-62.00
-71.00
-18.00
-19.00
-15.00
-10.00
-10.00
-14.00
-38.00
-45.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
Overvalued: 8.39% compared to the current price ₹2,985.00
Intrinsic Value: 3,401.29
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
Undervalued: 13.95% compared to the current price ₹2,985.00
Last 5 Year EPS CAGR: 24.39%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The company has shown consistent growth in sales (57.08 cr) and profit (147.46 cr) over the years.
The stock has a low average ROCE of 7.25%, which may not be favorable.
The stock has a high average Working Capital Days of 38.17, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 12.50, which may not be favorable.
The company has higher borrowings (40,211.50) compared to reserves (21,283.50), which may suggest financial risk.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Adani Enterprises Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 9.18% (Industry Average ROE: 10.21%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 81.9 (Industry average Stock P/E: 164.27)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 1.42
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Adani Enterprises Ltd. is a Public Limited Listed company incorporated on 02/03/1993 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L51100GJ1993PLC019067 and registration number is 019067. Currently Company is involved in the business activities of Wholesale of solid, liquid and gaseous fuels and related products. Company’s Total Operating Revenue is Rs. 26824.05 Cr. and Equity Capital is Rs. 109.98 Cr. for the Year ended 31/03/2022.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Adani Enterprises Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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