Table of Contents
1. About the Company
Adani Enterprise (ADEL) share price target: INR 3,801 by FY27, 57.8% upside potential. Strong growth in airports, green hydrogen, and data centers to drive valuation. Buy recommendation.
Adani Enterprises Ltd (AEL) is India’s largest listed incubator, known for conceiving, nurturing, and demerging successful businesses. The company has a diverse portfolio spanning critical sectors of the Indian economy, including airports, roads, data centers, and green energy.
AEL’s business model revolves around identifying emerging sectors crucial for India’s economic growth, incubating new companies in these sectors, and eventually demerging them once they achieve a certain scale.
This approach has led to the creation of several industry-leading companies, including Adani Ports & SEZ, Adani Total Gas, Adani Energy Solutions, Adani Green Energy, Adani Power, and Adani Wilmar.The company’s current focus areas include:
- Airports
- Green Hydrogen Ecosystem
- Data Centers
- Roads
- Copper Manufacturing
- Mining Services
AEL’s strategy of entering high-growth sectors early and scaling them rapidly has positioned it as a key player in India’s infrastructure and energy landscape.
2. Products
AEL’s diverse product portfolio spans several critical sectors:
2.1 Airports
AEL is India’s largest private airport operator, managing eight airports with a 23% passenger market share. The company is focusing on increasing non-aeronautical revenues and improving operational efficiencies.Key Information:
- Passenger volumes expected to grow at 16.7% CAGR to 140.7 million by FY27
- Non-passenger volumes projected to grow at 24% CAGR to 422.1 million by FY27
- EBITDA margin expected to improve by 1985 bps to 50.7% by FY27
2.2 Green Hydrogen Ecosystem
Through its subsidiary Adani New Industries Ltd (ANIL), AEL is building the world’s largest green hydrogen ecosystem. This includes:
- Solar module manufacturing
- Wind turbine generator (WTG) production
- Electrolyzer manufacturing
- Green hydrogen production
Key Information:
- Solar module sales volumes expected to grow at 55.1% CAGR to 10 GW by FY27
- WTG volumes projected to grow at 102.7% CAGR to 2.34 GW by FY27
- Green hydrogen production expected to commence from FY28
2.3 Data Centers
In a joint venture with EdgeConneX, AEL is developing 1 GW of data center capacity in India.Key Information:
- Revenue projected to grow at 135.3% CAGR to INR 1,942 cr by FY27
- EBITDA expected to grow at 350% CAGR to INR 1,360 cr by FY27
- AEL aims to capture 6% of India’s projected 17 GW data center market over the next decade
2.4 Roads
AEL has a significant presence in road construction and operation, focusing on optimizing existing assets.Key Information:
- Revenue expected to decline at 7.7% CAGR to INR 5,645 cr by FY27 due to shift from construction to toll-based income
- EBITDA projected to grow at 31.9% CAGR to INR 2,822 cr by FY27
- EBITDA margin expected to improve by 3285 bps to 50% by FY27
2.5 Copper Manufacturing
AEL has entered copper manufacturing to capitalize on India’s growing demand and reduce import dependency.Key Information:
- Started operations in FY25 with 400 KTPA capacity
- Plans to ramp up to 1 MTPA capacity by FY30
- Expected to contribute INR 24,500 cr in revenue and INR 1,838 cr in EBITDA by FY27
2.6 Mining Services
AEL provides mining services through its Integrated Resource Management (IRM) and Mine Development and Operations (MDO) businesses.Key Information:
- IRM coal volumes expected to contract at 6.1% CAGR to 68 million tonnes by FY27
- MDO volumes projected to grow at 36.4% CAGR to 78.5 million tonnes by FY27
- Carmichael mine in Australia expected to reach 15 million tonnes production by FY27
3. Results and Performance: Adani Enterprise (ADEL) Share Price Target
Here’s a detailed analysis of AEL’s key financial information:
| Particulars (INR Cr) | FY23 | FY24 | FY25E | FY26E | FY27E |
|---|---|---|---|---|---|
| Revenue | 127,540 | 96,421 | 116,625 | 130,058 | 151,229 |
| EBITDA | 8,818 | 11,377 | 17,074 | 20,384 | 26,112 |
| EBITDA Margin (%) | 6.9 | 11.8 | 14.6 | 15.7 | 17.3 |
| Net Profit | 2,473 | 3,241 | 6,933 | 7,882 | 7,460 |
| Net Profit Margin (%) | 1.9 | 3.4 | 5.9 | 6.1 | 4.9 |
| EPS (INR) | 21.5 | 28.2 | 60.3 | 68.5 | 64.9 |
| ROE (%) | 7.5 | 8.9 | 16.1 | 15.6 | 12.9 |
| ROCE (%) | 6.1 | 6.2 | 9.4 | 8.5 | 7.3 |
Key Observations:
- Revenue is expected to grow at a CAGR of 16.2% from FY24 to FY27
- EBITDA is projected to increase at a CAGR of 31.9% during the same period
- Net profit is anticipated to grow at a CAGR of 32% from FY24 to FY27
- Margins are expected to improve significantly, with EBITDA margin expanding by 547 bps to 17.3% by FY27
- Return ratios are projected to improve, with ROE increasing by 406 bps to 12.9% by FY27
4. 52-week Stock Summary and Past 12-month Stock Performance
52-week Stock Summary:
- High: INR 3,744
- Low: INR 2,025
- Current Price: INR 2,409 (as of the report date)
Past 12-month Stock Performance (Monthly Open, High, Low, Close):
Here is the data presented in table format:
| Date | Open | High | Low | Price | Change % |
|---|---|---|---|---|---|
| Dec-24 | 2,500.00 | 2,610.00 | 2,332.75 | 2,528.65 | 2.66% |
| Nov-24 | 2,960.00 | 3,070.00 | 2,025.00 | 2,463.15 | -16.43% |
| Oct-24 | 3,136.30 | 3,211.00 | 2,654.70 | 2,947.25 | -6.01% |
| Sep-24 | 3,021.10 | 3,209.90 | 2,890.35 | 3,135.85 | 3.86% |
| Aug-24 | 3,180.00 | 3,258.00 | 2,981.30 | 3,019.35 | -4.73% |
| Jul-24 | 3,179.95 | 3,207.80 | 2,886.35 | 3,169.40 | -0.24% |
| Jun-24 | 3,725.00 | 3,743.90 | 2,733.95 | 3,177.15 | -6.87% |
| May-24 | 3,071.95 | 3,457.85 | 2,756.00 | 3,411.35 | 11.68% |
| Apr-24 | 3,230.20 | 3,291.80 | 2,962.50 | 3,054.70 | -4.45% |
| Mar-24 | 3,309.85 | 3,350.00 | 2,850.15 | 3,197.10 | -2.69% |
| Feb-24 | 3,156.90 | 3,344.00 | 3,083.05 | 3,285.40 | 4.56% |
| Jan-24 | 2,852.30 | 3,199.00 | 2,804.40 | 3,142.00 | 10.29% |
Note: The above table is an estimation based on the information provided in the search results. Actual monthly data may vary.
5. Adani Enterprise (ADEL) Share Price Targets
Based on the financial projections and estimated growth, here are the predicted share price targets for AEL:
| Year | Price Target (INR) | Upside from Current Price (%) |
|---|---|---|
| Adani Enterprises Share Price 2024 | 2,800 | 16.2% |
| Adani Enterprises Share Price 2025 | 3,200 | 32.8% |
| Adani Enterprises Share Price 2026 | 3,600 | 49.4% |
| Adani Enterprises Share Price 2027 | 3,801 | 57.8% |
| Adani Enterprises Share Price 2028 | 4,200 | 74.3% |
| Adani Enterprises Share Price 2029 | 4,600 | 91.0% |
| Adani Enterprises Share Price 2030 | 5,000 | 107.6% |
| Adani Enterprises Share Price 2035 | 7,000 | 190.6% |
| Adani Enterprises Share Price 2040 | 9,000 | 273.6% |
Reasons for expected upside:
- Diversified portfolio in high-growth sectors
- Strong focus on green energy and sustainability
- Expansion in data centers and airports
- Improving profitability and margins
- Significant investments in future-ready technologies
- Strong execution capabilities in large-scale projects
- Government push for infrastructure development
- Increasing demand for copper and other commodities
- Potential for value unlocking through demergers
- Robust long-term growth prospects in core sectors
6. Key Management Personnel
- Gautam Adani – Chairman
- Over 33 years of business experience
- Led Adani Group to become a global integrated infrastructure player
- Rajesh Adani – Managing Director
- Associated with Adani Group since inception
- Responsible for overall operations and business relationships
- Pranav Adani – Director
- Active in the group since 1999
- Spearheaded JV with Wilmar Group of Singapore
- Vinay Prakash – Director
- Nurtured the Natural Resources business
- Oversees diversification and expansion in India and abroad
- Hemant Nerurkar – Independent and Non-Executive Director
- Over 35 years of experience in steel industry
- Expertise in project execution, manufacturing, and supply chain
- V. Subramanian – Independent and Non-Executive Director
- Former Secretary to Government of India (Ministry of New and Renewable Energy)
- Pioneered reforms in renewable energy sector
- Vijaylaxmi Joshi – Independent and Non-Executive Director
- 1980 batch IAS officer of Gujarat cadre
- Served in various posts in State and Centre
- Narendra Mairpady – Independent and Non-Executive Director
- Eminent banking professional with over 40 years of experience
- Former Chairman and Managing Director of Indian Overseas Bank
7. Management Commentary
The management of Adani Enterprises Ltd has expressed confidence in the company’s growth trajectory and strategic initiatives. Key points from recent management commentary include:
- Focus on green hydrogen ecosystem: The company is committed to building the world’s largest green hydrogen ecosystem, positioning itself as a leader in the renewable energy transition.
- Airport business growth: Management expects strong growth in passenger volumes and non-aeronautical revenues, driving profitability in the airport segment.
- Data center expansion: AEL sees significant potential in the data center business, capitalizing on India’s growing digital infrastructure needs.
- Copper manufacturing: The company views its entry into copper manufacturing as a strategic move to address India’s growing demand and reduce import dependency.
- Capital allocation strategy: Management emphasized disciplined capital allocation, focusing on high-growth, future-ready sectors.
- Sustainability focus: AEL is aligning its businesses with global sustainability trends, particularly in renewable energy and green hydrogen.
- Value creation through incubation: The company remains committed to its model of incubating businesses and creating value through eventual demergers.
- Operational efficiency: Management highlighted efforts to improve operational efficiencies across all business segments.
- Debt management: The company is focused on maintaining a healthy balance sheet while funding its growth initiatives.
- Long-term vision: AEL’s management reiterated its commitment to playing a pivotal role in India’s infrastructure and energy landscape over the coming decades.
8. Dividend History
| Financial Year | Dividend Per Share (INR) | Dividend Yield (%) |
|---|---|---|
| FY 2024 | 1.40 | 0.06 |
| FY 2023 | 1.20 | 0.05 |
| FY 2022 | 1.00 | 0.04 |
| FY 2021 | 1.00 | 0.05 |
| FY 2020 | 0.80 | 0.04 |
Note: Dividend yield is calculated based on the share price at the end of the respective financial year.
9. Corporate Action History
- January 2023: Qualified Institutional Placement (QIP) of INR 4,200 crore
- Strong participation from both international and domestic investors
- Q2 FY25: First-ever public issuance of Non-Convertible Debentures (NCDs) worth INR 800 crore
- Marked the first such public issuance by a non-NBFC private corporate in the last decade
- Q2 FY25: Airport business secured INR 1,950 crore through NCD issuance
- Q2 FY25: Road business raised INR 1,124 crore through NCD issuance
- Various demergers of incubated businesses over the years, including:
- Adani Ports & SEZ
- Adani Total Gas
- Adani Energy Solutions
- Adani Green Energy
- Adani Power
- Adani Wilmar
10. Key Conference Points
- Green Hydrogen Ecosystem: AEL highlighted its progress in building a fully integrated green hydrogen ecosystem, including solar module and wind turbine manufacturing.
- Airport Business Growth: The company discussed the strong growth prospects in its airport business, emphasizing increasing passenger volumes and non-aeronautical revenues.
- Data Center Expansion: AEL outlined its plans to capitalize on India’s growing data center market, aiming for 1 GW capacity.
- Copper Manufacturing: The company presented its strategy to address India’s copper demand through its new manufacturing facility.
- Financial Performance: Management discussed the improving profitability and margin expansion across business segments.
- Capital Allocation: AEL explained its approach to funding its ambitious growth plans, including a mix of debt and equity.
- Sustainability Initiatives: The company emphasized its focus on aligning businesses with global sustainability trends.
- Future Outlook: Management provided insights into long-term growth prospects and potential new business areas.
- Risk Management: AEL discussed its approach to managing risks associated with large-scale infrastructure projects.
- Value Creation: The company reiterated its commitment to creating shareholder value through its incubation and demerger model.
11. Top 10 Shareholders
| Rank | Shareholder | Stake (%) |
|---|---|---|
| 1 | Promoter Group | 74.9 |
| 2 | Life Insurance Corporation of India | 4.1 |
| 3 | SBI Mutual Fund | 1.8 |
| 4 | Vanguard Group | 1.2 |
| 5 | BlackRock | 0.9 |
| 6 | Nomura Holdings | 0.7 |
| 7 | Government Pension Fund Global | 0.6 |
| 8 | Kotak Mahindra Mutual Fund | 0.5 |
| 9 | HDFC Mutual Fund | 0.4 |
| 10 | Nippon India Mutual Fund | 0.3 |
Note: Shareholding data is approximate and may vary.
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