At a Glance
Adani Enterprises isn’t your typical conglomerate. It’s a stock market-listed startup factory — spinning off everything from airports to green hydrogen to FMCG rice. But with a P/E of 66 and ROE of 9%, the question is: Are we buying profits or just narrative?
🧪 1. Adani: Incubator with a Billion-Dollar Batch Size
This isn’t a business. It’s a B-school case study on steroids.
- 🏗️ Airports
- 🛣️ Expressways
- ⚡ Data centres
- 🔋 Solar panel & cell manufacturing
- 🧴 FMCG (Adani Wilmar)
- 🛢️ IRM (Integrated Resource Management)
- 🇮🇳 Defence & aerospace
- 🧪 Green hydrogen (new love)
🎩 Fun fact: It’s the flagship incubator that gave birth to Adani Ports, Adani Power, Adani Transmission, Adani Green, and Adani Wilmar. Think of it as the Adani Y Combinator — except every startup is worth a few thousand crores.
📊 2. Financial Glow-Up: Rocket or Mirage?
| Metric | FY20 | FY25 | Growth |
|---|---|---|---|
| Revenue | ₹43,403 Cr | ₹97,895 Cr | 2.25x |
| Net Profit | ₹1,040 Cr | ₹8,005 Cr | 7.7x |
| EPS | ₹10.35 | ₹61.62 | 6x |
| OPM % | 5% → 15% | 🔥 Margin expansion masterclass |
🧠 5Y Profit CAGR: 39%
📈 5Y Sales CAGR: 18%
💥 Last 3Y Profit CAGR: 78% 😳
⚡ ROE: Still underwhelming at 9.82%
💥 3. The Good, the Giga, and the Grenade
✅ The Good
- 🛠️ Infrastructure-heavy, long-gestation assets with strong moat
- 🧫 Business diversification like a pharma company’s pipeline
- 🏗️ Asset-light IRM biz keeps margins stable
- 🧮 Smart use of leverage — even if it gives SEBI nightmares
🟡 The Giga (But Risky)
- 🧨 CWIP of ₹51,516 Cr — someone’s building a kingdom
- 🧾 Other income of ₹6,403 Cr in FY25 — yeah, we noticed
- 🤹 Constant reshuffling — assets move in and out like musical chairs
- 💡 Highly reliant on debt-led growth (Borrowings now ₹91,819 Cr)
❌ The Grenade
- 🧨 P/E of 66.4 with ROE of <10% — are we paying for vision or illusion?
- 🧾 Price to Book = 5.8x (for a holding company??)
- 🔍 Not all segment disclosures are crystal clear — a black box to analysts
- 🤐 Dividend payout? A majestic 2%
✈️ 4. Segment Peek: What Drives This Behemoth?
| Segment | Commentary |
|---|---|
| 🛫 Airports | 7 airports including Mumbai + 2 new terminals + ₹1B investment-grade bonds |
| 🔋 Solar Mfg. | Full backward integration (ingots to modules), massive PLI play |
| 🌾 Wilmar (FMCG) | Spun off, but still contributes via shareholding |
| 🏗️ Infra (roads, rail, water) | Continues to bag govt contracts via EPC arms |
| 🧪 Green H2 | Pilot project commissioned in Kutch this week (5 MW, off-grid) |
Basically, if it’s ambitious and capital-intensive — AEL is already doing it.
📉 5. Valuation: FOMO ke chakkar mein overpay toh nahi?
Let’s hit some sanity checks:
Method 1: ROE-based Justified P/E
- ROE = 9.8%, g = 18%, r = 13%
- Justified P/E = 9.8 / (13 – 18) → Invalid (negative)
- Let’s conservatively assume justified P/E = 25 (generous)
FV = ₹61.62 × 25 = ₹1,540
Method 2: Market Conglomerate Discount
- Adani Enterprises P/B = 5.8x
- Industry average for holding/infrastructure = ~2.5x
- Book Value = ₹436
- FV = ₹436 × 2.5 = ₹1,090
🎯 EduInvesting Fair Value Range: ₹1,100 – ₹1,540
(CMP ₹2,527 → 38%–56% downside risk)
🧠 6. Final Take: AEL = Ambition Enterprises Ltd
AEL is India’s most aggressive builder of tomorrow, and if this was Silicon Valley, VCs would be throwing money at it. But listed markets want profit with governance, not just dreams.
🟢 Buy if:
- You’re a long-term believer in Adani infrastructure supremacy
- You treat it like a VC bet on India’s infra growth
- You enjoy thrill rides on rollercoaster charts 🎢
🔴 Avoid if:
- You want current returns, not distant glory
- You can’t digest high valuation + opaqueness
- You remember the Hindenburg chill of Jan 2023 🥶
✍️ Written by Prashant | 📅 June 26, 2025
📌 Tags: Adani Enterprises, AEL, Infra Stocks, Green Hydrogen, Solar PLI, Airport Stocks, Holding Company Valuation, EduInvesting Fair Value, Conglomerate Discount, Stock Valuation
