Adani Enterprises Limited

ADANIENT.BO•thermal-coal

Current Price

2,311.80INR

per share

Fair Value

2,731.44INR

Undervalued

15.4%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 28.07%, higher than industry average of 7.46%.

Growth Trajectory

Profitability

In the growth phase company makes 19.56% profit on every dollar of sales, lower than industry average of 20.75%.

Profitability Trajectory

Risk Profile

Investors expect at least 11.66% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

4.05T INR

Equity Value

3.15T INR

FCF Yield

53.19%

Average ROIC

14.51%

Cost of Capital

10.65%

P/E Ratio

20.82x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	942B INR	963.16B INR
Operating Income or EBIT	191.24B INR	94.14B INR
Interest Expense	52.68B INR	37.19B INR
Book Value Of Equity	503.14B INR	390.76B INR
Book Value Of Debt	918.19B INR	653.10B INR
Cash and Marketable Securities	68.03B INR	45.48B INR
Number of Shares Outstanding	1.15B	--
Minority interests	51.10B INR	0 INR
Current Stock Price	2311.80 INR	--
Effective Tax Rate	33.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

-9.66%

-2.20%Company

7.46%Industry

Below Industry

Operating Margin

-0.45%

20.30%Company

20.74%Industry

At Industry Level

Adani Enterprises Limited performs in line with industry averages, showing balanced competitive positioning within its sector.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.87%

Reinvestment Rate

52.36%

Terminal value represents 96% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	3.90T INR	Add
Present Value (Cash Flow Over Next 10 Years)	148.30B INR	Add
Value of Operating Assets	4.05T INR	Sub-total
Debt	918.19B INR	Subtract
Minority Interests	51.10B INR	Subtract
Cash	68.03B INR	Add
Value of Equity	3.15T INR	Sub-total
Number of Shares	1.15B shares	Divisor
Estimated Value per Share (Fair Value)	2.73K INR	Total
Current Market Price	2.31K INR	Reference

Financial Projections

Total FCF Present Value

148.30B INR

Avg Revenue Growth

19.19%

Avg Operating Margin

19.39%

Avg ROIC

14.51%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	1.35T INR	1.72T INR	2.21T INR	2.83T INR	3.63T INR	4.48T INR	5.32T INR	6.06T INR	6.63T INR	6.94T INR	7.26T INR
Growth Rate	43.32%	28.07%	28.07%	28.07%	28.07%	23.38%	18.70%	14.01%	9.33%	4.64%	4.65%
PROFITABILITY
Operating Income	274.08B INR	342.46B INR	433.12B INR	547.70B INR	692.46B INR	854.42B INR	1.01T INR	1.15T INR	1.26T INR	1.32T INR	1.38T INR
Operating Margin	20.30%	19.80%	19.55%	19.31%	19.06%	19.06%	19.06%	19.06%	19.06%	19.06%	19.06%
EBIT (1-tax)	183.63B INR	229.45B INR	290.19B INR	366.96B INR	463.95B INR	577.59B INR	691.70B INR	795.61B INR	877.46B INR	926.20B INR	969.27B INR
CASH FLOW
Reinvestment	266.70B INR	341.58B INR	437.47B INR	560.28B INR	597.82B INR	675.47B INR	600.98B INR	456.26B INR	248.50B INR	260.06B INR	507.56B INR
Free Cash Flow	-83.08B INR	-112.13B INR	-147.28B INR	-193.33B INR	-133.88B INR	-97.89B INR	90.71B INR	339.35B INR	628.96B INR	666.14B INR	461.71B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	10.91T INR
Present Value	-74.40B INR	-89.93B INR	-105.78B INR	-124.35B INR	-77.12B INR	-50.75B INR	42.54B INR	144.67B INR	245.02B INR	238.35B INR	—
EFFICIENCY
ROIC	13.56%	14.16%	14.79%	15.29%	15.67%	16.23%	16.34%	16.45%	16.58%	16.72%	8.87%
Cost of Capital	11.66%	11.66%	11.66%	11.66%	11.66%	11.10%	10.55%	9.99%	9.43%	8.87%	8.88%
Sales/Capital	1.42x	1.42x	1.42x	1.42x	1.42x	1.24x	1.24x	1.24x	1.24x	1.24x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)