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Investment Rationale
Adani Enterprises Ltd (AEL), the flagship company of leading infrastructure
conglomerate Adani Group. The company has a diversified presence in five
business sectors: Power, Oil & Gas, Real Estate, Agro and Metals & Minerals
with Shipping, the shipping acting as backbone to its various businesses. The
company operates through 30 offices including eight overseas offices in USA,
UAE, China, Singapore, Indonesia, Mauritius and Myanmar.
PT Adani Global, Indonesia a subsidiary of the Company, has been awarded
coal mining concessions in Bunyu island, Indonesia from which coal will be
used for the power projects being developed by Adani Power Ltd.
The Company, in a consortium with Naftogaz India Private Limited, Adani
Infrastructure Services Private Limited ('Adani Infrastructure') and
Welspun group have been awarded 2 Oil and Gas blocks under NELP VI
(Assam Block & Palej Block) . The Company and Adani Infrastructure hold
35% & 20% participating interest in each of the aforesaid two blocks and is
a non-operator.
Adani Enterprise has firmed up its business plans in Japan by announcing a
long term tie up and signing a partnership agreement with Kowa Company,
Japan's leading diversified business group entailing joint venture in common
areas of business like infrastructure and trade such as exports in both Japan
and India.
It remains one of the most highly leveraged, despite its Debt to Total Capital
ratio shrinking to 68.85% over the last fiscal year. However, an examination
of near-term assets and liabilities shows that there are enough liquid assets
to satisfy current obligations. Accounts Receivable are typical for the
industry, with 45.30 days worth of sales outstanding. Last, inventory levels,
relative to its Cost of Goods Sold, are typical for the industry and have shown
a consistent decrease during the last 4 years. This implies that management is
becoming more efficient.
Risks
Environmental issuance problem along with stretched balance sheet poses a
concern for the company.
Technical Comments
Stock is trading in an upward channel and likely to take strong support
around 625 levels being 50 Days EMA. The stock looks good with
increasing delivery volumes and may see positive momentum in coming
days. One can initiate long positions with stop of 600 levels and target of
690 levels.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Investment Rationale
Adani Enterprises Ltd (AEL), the flagship company of leading infrastructure
conglomerate Adani Group. The company has a diversified presence in five
business sectors: Power, Oil & Gas, Real Estate, Agro and Metals & Minerals
with Shipping, the shipping acting as backbone to its various businesses. The
company operates through 30 offices including eight overseas offices in USA,
UAE, China, Singapore, Indonesia, Mauritius and Myanmar.
PT Adani Global, Indonesia a subsidiary of the Company, has been awarded
coal mining concessions in Bunyu island, Indonesia from which coal will be
used for the power projects being developed by Adani Power Ltd.
The Company, in a consortium with Naftogaz India Private Limited, Adani
Infrastructure Services Private Limited ('Adani Infrastructure') and
Welspun group have been awarded 2 Oil and Gas blocks under NELP VI
(Assam Block & Palej Block) . The Company and Adani Infrastructure hold
35% & 20% participating interest in each of the aforesaid two blocks and is
a non-operator.
Adani Enterprise has firmed up its business plans in Japan by announcing a
long term tie up and signing a partnership agreement with Kowa Company,
Japan's leading diversified business group entailing joint venture in common
areas of business like infrastructure and trade such as exports in both Japan
and India.
It remains one of the most highly leveraged, despite its Debt to Total Capital
ratio shrinking to 68.85% over the last fiscal year. However, an examination
of near-term assets and liabilities shows that there are enough liquid assets
to satisfy current obligations. Accounts Receivable are typical for the
industry, with 45.30 days worth of sales outstanding. Last, inventory levels,
relative to its Cost of Goods Sold, are typical for the industry and have shown
a consistent decrease during the last 4 years. This implies that management is
becoming more efficient.
Risks
Environmental issuance problem along with stretched balance sheet poses a
concern for the company.
Technical Comments
Stock is trading in an upward channel and likely to take strong support
around 625 levels being 50 Days EMA. The stock looks good with
increasing delivery volumes and may see positive momentum in coming
days. One can initiate long positions with stop of 600 levels and target of
690 levels.
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