Adani Enterprises Share price and Fundamental Analysis

Company History

Adani Enterprises Limited (AEL), the flagship company of Adani Group, is one of the fastest growing diversified businesses providing an extensive range of products and services. The Company is engaged in mining & services, resource logistics, new energy supply chain including solar module and cell manufacturing, transport & logistics business like airports and roads, utilities like water and data centers, edible oil and food businesses. It operates as an incubator, establishing new businesses in transport & logistics and energy & utility sectors, apart from increasing focus on direct-to-consumer businesses.

Apart from this, it is engaged in the production of packaged food, edible oils, personal care products and industry essentials (including oleochemicals, castor oil and its derivatives and de-oiled cakes). As of 31st March 2022, the Company is having a market capitalization of over USD 29 billion. Its 22 plants are strategically located across ten States in India, comprising 10 crushing units and 18 refineries. Of the 18 refineries, 10 are port-based to facilitate the use of imported crude edible oil and reduce transportation costs, while the rest are located in the hinterland proximate to raw material production bases. The Company's refinery in Mundra is the one of the largest standalone in India (capacity 5,000 MT per day).

Adani Enterprises Limited was incorporated in the year 1992 with the name Adani Exports Limited. Initially, the company started as a partnership firm in 1988, and attained joint stock company status in the year 1993. In April 1, 1993, the company was accorded the status of 'Star Trading House' by the Ministry of Commerce, Government of India. In April 1, 1994, they were accorded the status of 'Super Star Trading House' by the Ministry of Commerce, Government of India. In September 1994, the company came out with the initial public issue.

In the year 1998, the company became the top net foreign exchange (NFE) earner of the country, Jetty at Mundra Port started their operation and the Coal business of the company was commenced. In the year 2000, the company commenced trading in Edible Oil business. The company received Gold Trophy, SRTEPC 1999-00 and 2000-01. The company awarded 'Five Star Export House' status. They successfully disinvested their stake in Mundra Container Terminal to P & O Ports, Singapore. The company was awarded the highest category 'F' inter-state license for trading in power by the Central Electricity Regulatory Commission (CERC) in the year 2003. The company introduced new products like Iron Ore, Power Trading, Maize, Sesame Seeds, Sorghum and Barley etc. During the year 2003-04, the company bagged GCCI Export Appreciation Award.

In the year 2005, the company received prestigious reorganization of 'Five Star Export House' on account of valuable contribution in country's overall exports. In the year 2006, Adani Agrifresh commenced their business. The company commissioned two floating crane barge. They started the work on setting up grain silos under Adani Agri Logistics. Also they commenced the construction of 660 MW thermal power project at Mundra, AEL expanded jetties at Mundra Port initiated. In August 2006, the company changed their name from Adani Exports Ltd to Adani Enterprises Ltd, the change in name conveys evolution with a clear focus on their five SBUs viz. Power, Oil & Gas, Real Estate, Agro and Metals & Minerals.

In July 17, 2007, the Base Depot constructed by Adani Agri Logistics was commissioned. The company entered into a long-term agreement with Gujarat Urja Vikas Nigam Ltd, to supply 2000 MW of electricity. In the year 2008, the company formed a joint venture company with Chemoil Energy for expansion of their bunkering business on pan India basis. In the year 2009, they received a Letter of Intent (LOI) for the Macchakatta Coal Block and LOA for Parsa Coal Block.

During the year 2009-10, the company acquired/ set up eleven subsidiaries namely Adani Gas Ltd, Adani Pench Power Ltd (set up by Adani Power Ltd), Adani Power Pte. Ltd, Singapore (set up by Adani Power Ltd), Kutchh Power Generation Ltd (set up by Adani Power Ltd), Rahi Shipping Pte Ltd, Singapore (set up by Adani Shipping Pte Ltd), Vanshi Shipping Pte Ltd, Singapore (set up by Adani Shipping Pte Ltd), Adani Cements Ltd, Maharashtra Eastern Grid Power Transmission Company Ltd, Mahaguj Power Ltd (set up by Adani Mining Pvt Ltd), Adani Infra (India) Ltd and PT Aneka Sumber Bumi, Indonesia (acquired by Adani Global Pte Ltd, Singapore). Also, Sunanda Agri Trade Pvt Ltd and PT Kapuas Coal Mining, Indonesia ceased to be the subsidiaries of the company.

During the year 2010-11, as per the scheme of amalgamation, certain promoter entities of Mundra Port & Special Economic Zone Ltd (MPSEZ), namely Adani Infrastructure Services Pvt Ltd, Advance Tradex Pvt Ltd, Adani Tradelinks Pvt Ltd, Pride Trade and Investment Pvt Ltd, Mauritius, Trident Trade and Investment Pvt Ltd, Mauritius, Radiant Trade and Investment Pvt Ltd, Mauritius and Ventura Trade and Investment Pvt Ltd, Mauritius was amalgamated with the company. Since the scheme of Amalgamation became effective, MPSEZ became a subsidiary of the company with 77.49% shareholding by the company. During the year, the company set up/acquired forth subsidiaries. Also, Adani Virginia Inc ceased as subsidiary of the company.

In May 2011, the company's wholly owned unit acquired Abbot Point Coal Terminal in Australia's Queensland state for $2 Billion as part of their business expansion overseas. In March 2012, the company signed five agreements for supply of imported coal with NTPC Ltd, the power generation company.

In 2012, Adani Group commissions India's largest solar power plant in Gujarat. In 2013, the company begins integrated coal MDO operations in India with access to coal reserves of over 3 billion tonnes. In 2014, the company and Posco agree to build rail line in Australia. In 2015, Adani signs MoU with Australia's Woodside Energy for Energy Cooperation.

During the FY2017,the company has issued NCDs having face value of Rs 10 lakhs each aggregating to /Rs 150 crore on private placement and listed on the debt market segment of the BSE Ltd.

During the year 2016-17,PT Mundra Coal and Adani Bunkering Pte Ltd were ceased as subsidiaries of the company.

During the year under review, the Hon'ble National Company Law Tribunal, Bench at Ahmedabad (NCLT') had, vide its order dated 3rd August, 2018 sanctioned the Composite Scheme of Arrangement among Adani Gas Holdings Limited (AGHL') and Adani Gas Limited (AGL') and Adani Enterprises Limited (AEL') and their respective Shareholders and Creditors. The scheme was approved by the shareholders, secured and unsecured creditors of the Company with requisite majority on 3rd July, 2018.

Pursuant to the scheme,one equity share of Re 1 each of AGL were credited for every one equity share held in AEL. Accordingly, the Board of Directors of AGL had on 9th September, 2018 allotted Equity Shares to those shareholders of AEL.

The spread of COVID-19 pandemic has severely impacted businesses not only in India but across several countries. Due to lockdown and restrictions from 24 March 2020. business and economic activities have been disrupted and stalled. The Company's operations and financial results for the quarter have been adversely impacted due to this unprecedented situation. The operations resumed gradually with requisite precautions and duly following Government guidelines.

During the quarter ended 30th September 2020, the Group has acquired 51% equity stake in PLR Systems Private Limited w.e.f. 10th September 2020 for cash consideration of Rs 50.25 crore.

The Company had 122 subsidiaries (direct and indirect including LLPs) and 1 associate company, as on 31st March, 2021.

The company signed concession agreement for Guwahati, Jaipur and Thiruvananthapuram Airports on 19th January, 2021.During the Q4 of 2021,the company formed joint venture 'AdaniConnex' with EdgeConnex to develop and operate data centers throughout India. Adani Airports Holdings Limited (AAHL), one of the subsidiary companies of the Group, had acquired 23.50% equity stake in Mumbai International Airport Limited (MIAL) from ACSA Global Limited and Bid Services Division (Mauritius) Limited on 5th February 2021.

Adani Global Pte Limited-Singapore (AGPTE), one of the subsidiary companies of the Group is holding 49% equity stake in Adani Solar USA Inc (ASUINC) while remaining 51% equity stake is held by Adani Green Energy Limited (AGEL). AGPTE 8- AGEL have entered into an agreement which has resulted into transfer of management rights/control of ASUINC to AGPTE with effect from 1st June 2021.

Subsequent to current quarter, AAHL has taken over management control of MIAL from the GVK Airport Developers Limited (GVKADL) on 13th July 2021 and subsequently completed acquisition of 97.97% equity stake of GVKADL. With this acquisition, AAHL will also hold, through GVKADL, 50.50% equity stake in MIAL. which in turn holds 74% equity stake in Navi Mumbai International Airport Limited.

Adani Global Pte Limited-Singapore, one of the subsidiary companies of the Group, has acquired 100% equity stake in Bowen Rail Operation Pte Ltd on 14th July 2021.

In FY'21, the Company commenced operations in Ahmedabad, Lucknow and Mangaluru airports.

As on 31st March, 2022, the Company has 150 subsidiaries (direct and indirect including LLPs) and 3 associate companies .

In FY'22, Company partnered with EdgeConnex to develop and operate Data Centers across India. It acquired land at Noida and Vizag. It received LoA for the Bhagalpur Waste Water HAM project in Bihar with 45 MLD capacity. It received LoA for 67 km Kagal Satara project, Maharashtra, under the BOT model.

During FY'22, the Company acquired Mumbai and Navi Mumbai airports. It acquired Jaipur, Guwahati and Thiruvananthapuram Airports as well. It completed the Initial Public Offering (IPO) and listed the equity shares of the joint venture Adani Wilmar on the Indian Stock Exchanges. It ventured into a new green energy value chain under Adani New Industries for the production of hydrogen at the lowest cost. In the Roads business, it won a Rs. 17,100 crore project for construction & maintenance of three greenfield Ganga Expressway projects of a total 464 km in Uttar Pradesh. In the Defence sector, it bagged contracts for over 1,000 crore from the Indian Armed Forces, including the first ever Small Arms Contract awarded to a private sector manufacturer of small arms. It commenced operations of Bravus mine in Australia. It took over operations of the Guwahati, Jaipur and Thiruvananthapuram airports and completed the acquisitions of MIAL and NMIAL. It launched Adani Digital Labs, integrating all consumer businesses around a single platform. As far as the conventional businesses were concerned, the Company's Parsa East and Kente Basan (PEKB) mine, the first and only captive open cast coal mine with washeries in the country, continued to operate at a peak capacity of 15 MMT per annum. Apart from other operational mines at Talabira II & III, Gare Pelma III and Kurmitar, it commenced operations at its Suliyari coal mine with a peak capacity of 5 MMT. It launched a new subsidiary called 'Adani New Industries Ltd.' (ANIL) to incubate, build and develop a large integrated platform to produce green energy through end-to-end supply and value chain development. It expanded its solar retail footprint across 21 States comprising more than 2,000 towns for the distribution of solar panels in India. It achieved project milestones within given time frames in the Suryapet and Mancherial projects. It bagged the largest greenfield (Ganga) Expressway in India. It entered the green hydrogen, petrochemical, digital and copper businesses. It commenced operations of the MiG29 simulator at Adampur under a 20-year Build Operate Maintain Contract with the Indian Air Force.

During the year 2022-23, the Company made three road projects operative; first Wind Turbine of 5.2 MW was installed at Mundra; it commissioned First Data Center at Chennai; upgraded the existing 1.5 GW module line to 2.0 GW with TOPCON Cell Technology; acquired New Delhi Television Limited (NDTV) and Sibia Analytics and Consulting Services Private Limited. Further, AMG Media Networks Limited, Wholly Owned Subsidiary of Company acquired 49% stake in Quintillion Business Media Limited. The new plant of 2.0 GW capacity under Mundra Solar Energy Limited (MSEL) for cell manufacturing was commissioned in March 2023.