Adani Enterprises jumps 4% in trade; here's why stock is in demand

Ventura Securities believes that Adani Enterprises is likely to see consolidated revenue grow at a CAGR of 17.5 per cent and net earnings by 45.8 per cent over FY24 and FY27

Adani Enterprises shares gained 3.9 per cent on BSE in Monday's trade, logging an intraday high at Rs 2,505.5 per share amid healthy growth projections in the fiscal year (FY24).

 

Around 10:03 AM, Adani Enterprises share price was up 3.9 per cent at Rs 2,503.2 per share on BSE. In comparison, the BSE Sensex was down 0.17 per cent at 78,563.49. The market capitalisation of the company stood at Rs 2,88,776.02 crore. The 52-week high of the stock stood at Rs 3,743 per share and the 52-week low stood at Rs 2,030 per share.

 

Ventura Securities believes that Adani Enterprises is likely to see consolidated revenue grow at a compound annual growth rate (CAGR) of 17.5 per cent and net earnings by 45.8 per cent over the 2023-24 fiscal year (FY24) and FY27.

 

It further reckons that despite stock volatility following the US Department of Justice (US-DOJ) notice (over bribery allegations) in November 2024, the company has demonstrated resilience, supported by robust fundamentals and operational strength in FY25 (April 2024 to March 2025).

 

The brokerage expects over FY24-27E, Adani Enterprises consolidated revenue, Ebitda, and net earnings are expected to grow at a CAGR of 17.5 per cent, 37.5 per cent, and 45.8 per cent, reaching Rs 1,56,343 crore, Rs 28,563 crore, and Rs 9,245 crore, respectively. Ebitda refers to Earnings before interest, tax, depreciation and amortisation.

 

Moreover, strong growth in airports and solar/wind turbine businesses and revenue contribution from copper are expected to enhance financial performance and profit margins. As a result, return ratios-- Return on Equity (RoE) and Return on Invested Capital (RoIC) -- are expected to improve by 563 basis points (bps) to 14.5 per cent and 99 bps to 11.3 per cent, respectively, the report said.

 

Ventura put an equity value of Rs 1.87 trillion for the airports business housed by the company, Rs 52,056 crore for road, Rs 29,855 crore for coal, and Rs 11,003 crore for the data centre business. 

 

It added: Adani Enterprises' strategic approach to business incubation and its diversified portfolio continues to drive its growth and reinforce its status as a pivotal player in India's economic development, it added.

 

In the past one year, Adani Enterprises shares have lost 15.4 per cent against Sensex's rise of 9 per cent.