Multibagger Alert: Investment of Rs 1 lakh in this stock last year would have turned to Rs 4.54 lakh today!
This company has successfully converted five infrastructure startups into thriving businesses by providing strong cash flow support during their initial capex cycle.
Adani Enterprises Ltd (AEL), the flagship company of the Adani Group, has turned into a multibagger by delivering massive returns of 355% as of November 9, 2021. The stock which was trading at Rs 359.5 on November 10, 2020, closed at Rs 1635.65 yesterday (November 9, 2021). It made a 52-week high of Rs 1718.45 on 7 June 2021.
As an incubator for transforming infrastructure startups into thriving businesses, AEL has a sharp focus on establishing new businesses in the infrastructure and energy sector. So far, it has built five unicorns, namely- Adani Transmission, Adani Power, Adani Ports & SEZ, Adani Green Energy and Adani Total Gas.
While these five companies have been successfully established, AEL’s focus now lies on incubating a new wave of Infrastructure & Utility Assets. In alignment with this, it has made strategic investments in the fields of airport management, roads, data centre and water infrastructure.
Talking about these developing businesses, in the Airport Vertical, which commenced operations in Q3 FY21, the company has a portfolio of eight airports, which serve approximately 20% of the total passenger base.
In the Road vertical, the company has a portfolio of 10 projects with NHAI for the construction/operation of roads aggregating to more than 450 km. In Q2FY22 alone, AEL completed road construction of 4 lakh km and for H1FY22, the construction numbers stand at 15 lakh km. By 2026, the company targets to construct roads of 12,000 lakh km.
In the Data Centre vertical, the company bagged a contract from Flipkart for 3MW capacity in Chennai. With a plan to empower Digital India, AEL aims to have a 1 GW Data Centre Platform in a decade.
In the Water infrastructure vertical, AEL signed a concession agreement with Bihar Urban Infrastructure Development Corporation in October 2021 for the Bhagalpur wastewater project.
Commenting on Q2FY22 performance, the company’s net revenue grew by 44.83% to Rs 13,218 crore. The PBIDT (ex OI) stood at Rs 882.6 crore, an increase of 17.49% YoY. However, its corresponding margin contracted by 155 bps to 6.68%. The bottom line declined by 69.5% to Rs 121.74 crore.
At 1.33 pm, the share price of Adani Enterprises Ltd was trading at Rs 1678.40, an increase of 2.61% from the previous day’s closing price of Rs 1635.65 on BSE.
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