adani ent ltd stock long

Adani Enterprises Ltd. is the flagship company of the Adani Group, a prominent Indian multinational conglomerate with interests spanning energy, resources, logistics, agribusiness, real estate, financial services, and defense. Here's a comprehensive analysis of its current situation:

**Fundamental Analysis:**

- **Financial Performance:**
- **Profit Decline:** In the October-December 2024 quarter, Adani Enterprises reported a significant decline in net profit, falling to ₹578.3 million from ₹18.88 billion in the same quarter the previous year. This 97% drop was primarily due to reduced coal trading volumes amid lower power demand and a broader economic slowdown.
- **Revenue Decrease:** The company's revenue also decreased by 9% to ₹228.48 billion during the same period, with the coal trading segment, which accounts for over a third of overall revenue, experiencing a 44% drop.

- **Market Position:**
- Adani Enterprises serves as the incubator for the Adani Group's new businesses, focusing on sectors such as energy, resources, logistics, agribusiness, real estate, financial services, and defense.

- **Valuation Metrics:**
- **Price-to-Earnings (P/E) Ratio:** The P/E ratio stands at 65.90, indicating a premium valuation compared to the industry average.
- **Price-to-Book (P/B) Ratio:** The P/B ratio is 5.57, reflecting a significant premium over the peer median of 3.53.

- **Analyst Ratings:**
- Analysts have set a consensus target price of ₹3,932.10 for Adani Enterprises, with estimates ranging from ₹3,030 to ₹4,945.50, suggesting potential upside from the current market price.

**Technical Analysis:**

- **Current Share Price:** As of February 24, 2025, the share price is ₹2,115.15.

- **Support and Resistance Levels:**
- **Support Level:** The immediate support is around ₹2,100, with a stronger support zone near ₹2,000.
- **Resistance Level:** The immediate resistance is near ₹2,200, with a stronger resistance around ₹2,300.

- **Price Performance:**
- Over the past month, the stock has declined by approximately 8.64%. citeturn0search3
- Over the past year, the stock has decreased by about 35.38%.

**Recent Developments:**

- **Allegations of Bribery:** In November 2024, U.S. authorities accused Adani Group executives, including founder Gautam Adani and his nephew, of engaging in bribery to secure Indian power supply contracts. The group has denied these allegations.

- **Tax Contributions:** In the financial year 2023-24, Adani Group companies paid ₹58,104 crore in taxes, up from ₹46,610 crore in the previous financial year, reflecting the group's significant contribution to India's economy.

**Conclusion:**

Adani Enterprises has faced significant challenges, including a substantial decline in profits and revenue, primarily due to reduced coal trading volumes amid economic slowdown. The company is also contending with allegations of bribery, which have impacted its reputation. Despite these challenges, the company maintains a strong market position and continues to contribute significantly to India's economy. Investors should monitor the company's financial performance, regulatory developments, and strategic initiatives in the coming quarters.