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Adani Enterprises Ltd logo

Adani Enterprises Ltd

NSE: ADANIENT BSE: 512599

1953.80

(0.57)%

Mon, 02 Feb 2026, 05:28 am

Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (10.3x coverage).
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Cons

  • No dividend growth in 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Adani Enterprises's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Adani Enterprises's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN Trade Distributors industry average.
  • An improvement in Adani Enterprises's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Adani Enterprises is expected to increase but not above the 50% threshold in 2 years time.
  • Adani Enterprises's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
  • Adani Enterprises's earnings growth is positive but not above the India market average.
  • Adani Enterprises's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Adani Enterprises's earnings are expected to decrease over the next year.
  • Adani Enterprises's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Adani Enterprises is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Adani Enterprises's revenue is expected to decrease over the next 2 years.
  • Adani Enterprises's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
  • Adani Enterprises's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

health

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Pros

  • Adani Enterprises is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Adani Enterprises is profitable, therefore cash runway is not a concern.
  • Adani Enterprises is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 1.9x debt.
  • Adani Enterprises's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (280.1% vs 68.2% today).
  • Interest payments on debt are well covered by earnings (EBIT is 3.8x coverage).
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Cons

  • Debt is not well covered by operating cash flow (19.8%, less than 20% of total debt).
  • Adani Enterprises's level of debt (68.2%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Adani Enterprises board of directors is about average.
  • Rajeshbhai's remuneration is about average for companies of similar size in India.
  • Rajeshbhai's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Adani Enterprises management team is about average.
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Cons

    misc

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    Pros

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      Cons

      • Adani Enterprises is covered by less than 3 analysts.
      • Adani Enterprises has significant price volatility in the past 3 months.

      past

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      Pros

      • Adani Enterprises's 1-year earnings growth exceeds its 5-year average (80.2% vs -12.6%)
      • Adani Enterprises has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
      • Adani Enterprises's earnings growth has exceeded the IN Trade Distributors industry average in the past year (80.2% vs 30.2%).
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      Cons

      • Adani Enterprises's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Adani Enterprises used its assets less efficiently than the IN Trade Distributors industry average last year based on Return on Assets.
      • Adani Enterprises has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • ADANIENT outperformed the Trade Distributors industry which returned -5.6% over the past year.
      • ADANIENT outperformed the Market in India which returned -14.5% over the past year.
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      Cons

      • Adani Enterprises's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Adani Enterprises's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Adani Enterprises is overvalued based on assets compared to the IN Trade Distributors industry average.
      • Adani Enterprises is poor value based on expected growth next year.
      • Adani Enterprises is overvalued based on earnings compared to the IN Trade Distributors industry average.
      • Adani Enterprises is overvalued based on earnings compared to the India market.
      • NSEI:ADANIENT is up 3.7% underperforming the Trade Distributors industry which returned 6.8% over the past month.
      • NSEI:ADANIENT is up 3.7% underperforming the market in India which returned 8% over the past month.

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