Adani Group Stocks in the groove: Worth investing in?

Easy List of All Adani Group Stocks with Analysis and Data

Adani Group is an Indian Multinational company founded by Mr. Gautam Adani in the year 1988. This company initially started as a Partnership firm but later got reformed as a Joint-stock company in the year 1993. The Ministry of Commerce, Government of India gave the company the status of 'Star Trading house'.

It was in September 1994, that the company launched its IPO under the name Adani Enterprise Limited. The IPO was priced at ₹12.50 lakhs and it got oversubscribed by over 25 times. During the financial year 1999-2000, the company generated a turnover of Rs.2853.11 chores, showing a growth of 30%.

Today, we see Adani Enterprise as a well-diversified company contributing to different segments like trading, agro, ports, power, gas, real estate, and others. The operations of Adani Enterprise are across the globe. The company has a presence in over 60 countries. And to make this presence significant, the company has 6 stocks under its name.

Stocks under the Adani Group

After the market crash of 2020, it is the Adani group stocks that have shown a stellar recovery. Some stocks of the group have given 741% returns in just one year. And I'm sure you must be interested to know about these stocks and their potential.

Adani Enterprise Limited:

It is one of the leading trading houses, involved in coal trading, power trading, and trading in agro commodities. This stock gives a consistent financial performance, has quality management, and strong technical momentum.

Currently, the stock is valued at a consolidated P/E of 165.47 which is expensive than its peers, but if we look at the returns of 1147.80% that the company has given in 5 years then we can say, that this stock is a long term bet. The company also promises a dividend yield of 0.62%. This stock has also shown a 2% growth on ROE i.e. from 4.89% in FY19 to 6.71% in FY20. The ROCE of Adani Enterprise Limited is valued at 10.57%.

Recently, the company has bagged many projects including a highway project from NHAI in Odisha. Although the company has shown degrading Operating Profit margins and Net Profits, it remains one of those companies that have shown the highest recovery from its 52 week low.

Adani Transmission Limited (ADANITRANS):

The company was founded in the year 2015 and it is one of the largest private sector power transmission companies operating in India. It has a market capitalization of ₹1.20 lakh crores and in 5 years the company has given 3102.19% returns. Although it is valued at a higher P/E of 111.52, the company gave 14.21% ROE and 10.57% ROCE in the financial year 2020.

Not a long ago, the share hit its 52 weeks high due to the acquisition of Warora-Kurnool Transmission. The dividend yield of this stock stands at 0%. One of the top reasons is the growing costs for the long-term project. Nevertheless, Adani Transmission remains one of the companies with rising net profits.

Adani Green Energy Limited (ADANIGREEN):

As the name suggests, it is an Indian renewable company that was incorporated on 23rd January 2015 energy. It was the first Indian company that offered investment-grade US dollar green bonds worth US$362.5 million to foreign investors. These bonds got listed on Singapore Exchange Securities (SGX).

Initially, the stock debuted in the stock market at $30 in 2018, and today we see that the stock has given 3,076.53% returns already and is currently valued at a P/E of 1021.23% whereas the industry's P/E is only 18.12% making it a very expensive stock. The ROE of this stock is -3.04% while the ROCE is 7.37%. Even after having weak ROE, we can see that Foreign Institutional Investors (FIIs) have consistently increased their stake in the stock.

Also, you may find that the dividend yield is 0%, and the company is highly in debt but the fact Adani green energy limited is effectively using its capital to generate profit and its solar energy portfolio makes it a multi-bagger stock.

Adani Total Gas limited (ATGL):

ATGL was founded in the year 2005 in Ahemdabad. It focuses on City Gas Distribution (CGD) business to supply the Piped Natural Gas (PNG) to the Industrial, Commercial, Domestic sector. The company is also supplying Compressed Natural Gas (CNG) to the transport sector.

With a market capitalization of ₹1.28 lakh crores, the company consolidated P/E is 290.27. The company offers a dividend yield of 0.02% which is not very significant but the ATGL stock has shown steady growth in its ROE from 20.75% in March 2019 to 29.66% in March 2020. The ROCE of the company is 31.21%, 0.76% more than last year. It's a low debt company with increasing profits every quarter and zero promoter pledge.

Adani Ports & SEZ (ADANIPORTS):

Mundra Port and Special Economic Zone Limited or Adani Ports is India's largest private multi-port operator which currently controls 10 ports in India and 14 terminals across 6 states. The company currently operates 10 ports in India and 14 terminals across 6 states. It specializes in providing Dredging and Reclamation solutions for port and harbor construction. The Mudra Port is best known to introduce technological advancements to enhance the speed and efficiency of cargo handling.

It was in November 2007 that the company issued its IPO and it was oversubscribed by 115.84 times. The stock is not overvalued as its consolidated P/E is 37.11 nearly half that of the industry. The stock has given 203.21% in a year and its ROE and ROCE as of March 2020 stand at 14.78% and 11.22% respectively.

Even if the company has shown degrowth in Revenue and Profit the company can generate strong cash which can be seen with the improvement of cash flow. In 5 months, the company has also bagged many acquisitions including a 31.5% stake in Gangavaram Port Ltd (GPL) and a 75% stake in Krishnapatnam Port Co Ltd (KPCL).

Adani Power (ADANIPOWER):

Adani Power is a power business company that was established in the year 1996. It was not until July 2009 that the company started generation by RAM implementation. The company has four thermal power projects under various stages of development.

On 20th August 2008, the company got listed on NSE and BSE at ₹108 and ₹105 respectively. In June 2018, the stock crashed to ₹15 and it was only recently that the stock gave a breakout. In 1 year the stock has given 250.47% returns. Although its P/E is -3.39 and ROE is 0% the stock remains in demand.

Soon, the company is going to issue an IPO under the name Adani Wilmar which is a joint venture between Adani Group and Singapore-based Wilmar International. The company sells edible oil and basmati rice under the brand name 'Fortune'. Adani Wilmar is aiming to raise as much as ₹5,000 crores through this IPO. Do you think this IPO will be a hit or miss?

(Disclaimer: The above-mentioned figures are subject to change)