Adani Enterprises: A multibagger with a high growth potential

Adani Enterprises Limited has a diversified business portfolio spanning coal trading, coal mining, oil and gas exploration, ports, multi-modal logistics, power generation, and transmission and gas distribution. It is a largecap company with a market capitalization of Rs 1,85,961 crore. It has a PE of 183 while the sector PE lies at 227.79 indicating that the company is not overvalued. Despite being its sector leader, the company has tremendous growth potential and has aggressive futuristic plans.

Adani Enterprises have a higher than industry revenue growth. In the last 5 years, revenue has grown at 2.77 per cent YoY, vs the industry average of 1.12 per cent. and consistently increasing market share over the last five years from 48.11 per cent to 52.22 per cent make it investment-worthy. Almost 75 per cent of the stake is held by promoters which shows that they believe in this company. The foreign investors hold about an 18 per cent stake, while the remaining is held by the domestic institutions and mutual fund houses.

From a technical perspective, Adani Enterprises has been scaling newer highs since the 2020 crash. It has given a whopping 355.45 per cent in one year and 8.5 per cent in a one-month period when the indices were bleeding. Adani Enterprises has been trading strongly for the past nine trading sessions with above average volumes. The stock has a beta value of 1.42. The stock, being highly volatile in nature, is trading in a broader range of 1350-1700 for a few months. The RSI is going strong at 66 showing bullishness and the positive movement indicator +DMI is positioned much higher than its -DMI indicating that the trend is gaining momentum. It is currently testing its all-time high levels of 1700 and any closing above it will mean that the uptrend is likely to continue. The stock is certainly attractive, traders and investors should closely watch this stock.