Adani Enterprises
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Adani Enterprises is navigating a complex landscape characterized by strategic diversification and significant growth initiatives, particularly in the New Energy Ecosystem and Data Centers. Management's optimistic outlook is underpinned by ambitious targets, including an 8 GW operational renewable portfolio by 2030 and substantial capacity expansions in solar and mining services. However, the company faces challenges such as margin pressure and elevated leverage, which could impact financial stability. Vista's forecast reflects these dynamics, anticipating revenue contraction and ongoing margin pressures, while the premium valuation suggests cautious investor sentiment. The macroeconomic environment in India remains supportive, with stable inflation and favorable liquidity conditions, yet global uncertainties pose risks. Over the next 12-24 months, key opportunities include the successful execution of major infrastructure projects and the potential for demergers to unlock value. Conversely, watchpoints include geopolitical tensions and operational delays that could hinder growth. Overall, while the growth trajectory appears promising, the financial outlook remains cautious due to inherent risks in execution and market conditions
Why We Like This Stock
- Strategic expansion in high-growth sectors like New Energy and Data Centers, with ambitious capacity targets
- Management's focus on disciplined execution and potential demergers to unlock value in core infrastructure segments
- Favorable macroeconomic conditions in India, including stable inflation and strong liquidity, supporting growth
Things To Watch Out For
- Expected revenue contraction and ongoing margin pressures due to elevated leverage and operational challenges
- Risks from global macroeconomic uncertainties and geopolitical tensions that could impact growth initiatives
- Potential delays in project execution and environmental clearances, affecting the company's growth trajectory
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 96,421 | 97,895 | 100,469 | 123,470 | 117,111 |
| Profit Before Tax (Cr.) | 5,341 | 6,203 | 4,310 | 2,615 | 3,116 |
| PBT Margin | 5.5% | 6.3% | 429.0% | 2.1% | 2.7% |
| Net Profit (Cr.) | 3,639 | 5,134 | 3,263 | 1,872 | 1,818 |
| Earnings Per Share | 27.2 | 32.6 | 20.4 | 11.7 | 14.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| CLSA | ▲ Buy | 3,638 | 23-Jun-2026 |
| Jeffries | ▲ Buy | 3,200 | 12-Jun-2026 |
| Morgan Stanley | ▲ Overweight | 3,638 | 23-Jun-2026 |
Company Overview
Show Company Profile
Adani Enterprises Limited, together with its subsidiaries, operates in the new energy ecosystem, data center, airports, roads, copper and PVC, and other sectors in India and internationally. It operates through the Integrated Resources Management (IRM), Mining Services, Commercial Mining, New Energy Ecosystem, Airport, Road, copper, and Others segments. The company engages in the integrated ecosystem for manufacturing green hydrogen, including solar cells, modules, and wind turbine generators; construction, operation, and maintenance of airports and road assets; commercial mining activities; supply of bunker fuels to shipping vessels; manufacture and supply of defense equipment; copper cathodes and cast rods; digital labs; and copper smelting and refinery, as well metals manufacturing. It also provides procurement and logistics services for minerals, as well as mining services. In addition, the company is involved in the sourcing, storage, and marketing of apples, grapes, pomegranates, stone fruits, digital mandi, and frozen peas; wastewater treatment, recycling, reuse projects; the operation of a news network; and Infrastructure Development and Water Resource Management. Further, it holds a portfolio of small arms, ammunition, unmanned aerial vehicles, counter-drone systems, missiles, and aircraft services. It also provides education, training and skill development. The company has strategic alliance with Jabil Inc. to build AI data center infrastructure platform in India. Adani Enterprises Limited was formerly known as Adani Exports Ltd. and changed its name to Adani Enterprises Limited in September 2006. The company was founded in 1988 and is headquartered in Ahmedabad, India.