Adani Group of Companies: In this Stock Spotlight, we spoke about Adani Group and its 6 companies - Adani Green Energy, Adani Ports and SEZ, Adani Transmission, Adani Power, Adani Enterprises and Adani Gas which are listed on the stock market.
Adani Group of Companies Analysis
Hey friends! As an investor learning is most important for you. Learning means taking information that will be used in your investor.
Today we have brought a new article where we will tell you about the 6 companies of the Adani group that trade in India's stock market. I will tell you about their business. Also, I will compare them with the peers. So that you receive information to become an intelligent investor.
Without taking much time let's move to the first company. Before moving towards the first company, I would like to give you a small disclaimer. The discussion on all the companies in today's article is for purely educational purposes. I just want to give you information about the 6 companies of the Adani group that trade in the share market.
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Adani Green energy
Let's move towards the first company. The first company of Adani group has been famous in the last one year. This is because it gave a 600% return to its investors. The share price of the company trades at Rs.1,040. Its name is Adani Green energy. This company entirely works in the renewable sector. The capacity expansion in recent times occurred really well. The numbers of the company were also remarkable.
After this, the company saw great growth. Its last 1-year return has been around 600%. So I told you about its business in the renewable sector, let me tell you that it also runs its business in the wind power and solar power sector. Its current capacity is around 650 megawatts. Now let's talk about the financial numbers of this company. Its market capitalization is more than Rs.1,63,000 cr.
The P/E ratio of this company is around 1800. Now all the investors might want to know - how we can compare its P/E ratio with the industry? Adani greens is entirely in the renewable sector. There is no direct industry that works in the renewable sector. But it can be compared to power sector companies like NTPC and Tata power. The P/E ratio of this industry is 11. So as compared to the P/E ratio of 11, its number can be considered great. The debt level of the company is very high. Its debt to equity ratio is 9. This can be considered the highest in the power industry.
In recent times the company has taken a lot of debt to expand its business in the renewable sector. So this is the information regarding this company. So Adani Greens was Adani Group's first company that I talked about. In the future, a lot of companies (India as well) are trying and have aspirational goals for energy consumption in the renewable sector(move). In emerging times we will know how the company manages its debt and maintains its growth. This was the first company from the Adani group.
Adani Ports and Special Economic Zones
Now let's talk about the second company of this group. The second company of this group is Adani Ports and Special Economic Zones.
As understood from the name, the major business of this company comes from ports. It develops, operates, and maintains ports. This is the main business of the company. Adani ports operate 10 ports and terminals that are spread in five states. The five states are directly related to the coastal areas. Some examples of states where it has ports are Gujrat, Goa, Tamil Nadu, and Odisha.
Its handling capacity is 178 MMT cargo on the west coast. While on the east coast this number is more than 40 MMT. The current share price of Adani ports is around Rs.170. In the last one year, it has given a 30% return to its investors. Its sales CAGR in the last 5 years has been 14%. Its net profit has seen a CAGR growth of 10.21% in the last 5 years. This can be considered a remarkable number. Now let's talk about the financial numbers of this company. Its market capitalization is more than Rs.95,000 cr. While the P/E ratio of Adani ports is around 24. The debt-equity ratio of Adani Ports is around 1.2. The return on equity of the company is more than 15%. The net profit margin means that if there are Rs 10 sales by the company and the production cost is Rs.6 then the profit of the company will be Rs.4. And 4/10 i.e. 40% will be the profit margin of the company. The net profit margin of Adani ports is around 32%. This can be considered a remarkable number.
Adani Transmission Limited
The third company of the Adani group is - Adani Transmission Limited.
As understood from the name- transmission, you can understand the business of the company. The company works towards transmitting electrical energy. Besides this, it also trades in castor oil. The business highlights of this company include the operation and maintenance of 5050 km of transmission lines. From this, you can understand the huge scale of the company. Its transformational capacity is 12,000 megawatts. The operational transmission systems of this company include 4 major systems that operate in the north and west regions.
Now let's talk about the financial numbers of this company. Its current share price trades around Rs.420. In the last one year, it has given a 27% return to its investors. The size/market capitalization of this company is around Rs.47,000 crore.
The P/E ratio of this company is around 56. The P/E ratio of other power sector companies is around 11. The company's debt-equity ratio is more than 2. While the return on equity of Adani transmission is 13%.
Adani Gas
The fourth company is Adani Gas. The business of this company includes infrastructure development of natural gas transportation. Its main business is in Ahemdabad (Vadodara) Gujrat. Besides this, it also majorly operates in Faridabad, (Haryana) and UP. From here you can understand that the company works under the Gas sector and distributes natural gas in the commercial, industrial and domestic sectors.
Its current share price is around Rs.369. It has given a 135% return to its investors. The market capitalization of this company is more than Rs.40,000 cr. The P/E ratio of the company is around 97. The industry P/E ratio is 43. The industry includes the companies that operate in the gas sector. Companies like Mahanagar Gas, Indraprastha Gas, and GAIL run their business in this industry. The debt-equity ratio of this company is around 0.25. In the last 5 years, the sales CAGR of this company has been 19%. This can be considered a great number. While the last 5 year's profit in CAGR is more than 60%.
Adani Power
Now let's talk about the fifth company of Adani group- Adani Power.
This company derives power from thermal and supplies it to different places. An interesting thing about this company is that recently a piece of news came out that- Adani power wishes to delist itself from the stock market.
In the emerging time, we will get to know how the company delists itself. Before this, there was a big company- Vedanta that tried delisting itself. But it couldn't do it as it did not get bids in reverse book building to delist itself.
The current share price of Adani Powers is Rs.47. In the last one year, it has given a negative 27% return to its investors. Out of the companies discussed this is the first company which has given a negative return in the last one year. Besides this, the market capitalization of Adani Ports is Rs.18,000 cr.
I will not talk about the P/E ratio of this company as it has booked losses in all quarters except the September quarter. When a company incurs losses you cannot talk about the P/E ratio for discussion. The debt-equity of the company is above 4. As compared to its peers the debt-equity ratio of Adani Power is quite high. This means that the company has high debt.
Adani enterprise
Now let us talk about the sixth company. This is the company that owns a share of all the discussed companies. It is Adani enterprise which is the root of all the companies. Adani enterprise ltd has more than 111 subsidiaries.
The share price of Adani enterprises is Rs.463. In the last one year, it has given a 120% return to its investors. The market capitalization of this company is more than Rs.50,000 cr.
The price/earnings ratio of Adani Enterprises is around 60. While the debt-equity ratio of this company is 0.75. The Return on Equity of the company is more than 5% in the last one year.
So this was our today's video where we wanted to tell you about the 6 companies of Adani Group that trade on the stock market.
I told you about them in detail. I hope that you found today's article to be informative.
We will provide you information about the different companies of a group. As an investor, this will help you in researching and choosing a good company.
We bring articles for educational purposes. We don't give any buy and sell recommendations of any stock.
Before investing in any stock do your own research and then make a long-term investment.
Happy investing!
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