Adani Enterprises Poised for Over 50% Growth
30 Jan 2024
2 Min Read
CW Team
Cantor Fitzgerald & Co. asserts that the Adani Group's flagship company, Adani Enterprises Ltd., holds the potential for a gain exceeding 50%, citing its central role in India's economic aspirations. Analysts Brett Knoblauch and Thomas Shinske, in a note dated Jan. 28, initiated coverage with an overweight rating, deeming the risk-reward ratio attractive at current levels.
The US-based broker set a price target of 4,368 rupees, indicating a 51% upside from Thursday's close, standing as the sole active recommendation on the stock. Adani Enterprises witnessed a surge of up to 5.4%, and other group firms also experienced gains.
Cantor's bullish recommendation is expected to boost confidence in Gautam Adani's conglomerate, which faced a critical report from a US short seller around the same time last year. The collective market value of the Adani companies has more than doubled to $185 billion from a record low of $82 billion in February.
The current valuation of Adani Enterprises primarily stems from its airports, roads, and the new energy segment. Analysts highlight that investors are essentially acquiring ""six other businesses for free,"" contributing over 85% of revenue in the fiscal year ending March 2023, with many currently in an incubation phase.
Despite concerns raised by the Hindenburg report, Cantor notes that the company has taken steps to mitigate liquidity risk and enhance governance and transparency. The analysts argue that, at this juncture, Adani is too substantial to overlook.
Gautam Adani has consistently refuted the fraud allegations presented by Hindenburg, which, at one point, led to a loss of over $150 billion in the group's market value.
Cantor Fitzgerald & Co. asserts that the Adani Group's flagship company, Adani Enterprises Ltd., holds the potential for a gain exceeding 50%, citing its central role in India's economic aspirations. Analysts Brett Knoblauch and Thomas Shinske, in a note dated Jan. 28, initiated coverage with an overweight rating, deeming the risk-reward ratio attractive at current levels.The US-based broker set a price target of 4,368 rupees, indicating a 51% upside from Thursday's close, standing as the sole active recommendation on the stock. Adani Enterprises witnessed a surge of up to 5.4%, and other group firms also experienced gains.Cantor's bullish recommendation is expected to boost confidence in Gautam Adani's conglomerate, which faced a critical report from a US short seller around the same time last year. The collective market value of the Adani companies has more than doubled to $185 billion from a record low of $82 billion in February.The current valuation of Adani Enterprises primarily stems from its airports, roads, and the new energy segment. Analysts highlight that investors are essentially acquiring six other businesses for free, contributing over 85% of revenue in the fiscal year ending March 2023, with many currently in an incubation phase.Despite concerns raised by the Hindenburg report, Cantor notes that the company has taken steps to mitigate liquidity risk and enhance governance and transparency. The analysts argue that, at this juncture, Adani is too substantial to overlook.Gautam Adani has consistently refuted the fraud allegations presented by Hindenburg, which, at one point, led to a loss of over $150 billion in the group's market value.
Next Story
RentenPe and Mygate Partner to Transform Rent Payments in India
Through a strategic partnership, RentenPe and Mygate aim to streamline rent payments and promote financial inclusion by enabling rent-based credit scores for Indian renters. RentenPe, India鈥檚 first Rent Credit Score鈩� platform and a pioneer in rental fintech innovation, has entered a significant alliance with Mygate, the leading community management app in the country. This partnership will transform rent transactions for millions of Indian households by embedding RentenPe鈥檚 payment and rent credit scoring technology directly within the Mygate app. With this integration, all ren..
Next Story
Supreme Unveils New Brand Identity to Elevate Lifestyle
Supreme, a respected name in Indian real estate with a four-decade legacy, has announced a complete rebranding. The move includes the launch of a new logo and a revamped website, both reflecting the group鈥檚 refreshed vision to 鈥楨levate Lifestyle鈥�. This brand transformation represents more than a visual refresh鈥攊t marks a strategic shift in the company鈥檚 mission, visual identity and market positioning. The update will be visible across all of Supreme鈥檚 digital, social and offline communication platforms. At the core of the initiative is a renewed focus on purposeful design..
Next Story
Capri Loans Launches #TarrakiKeHaath Campaign Honouring India鈥檚 Everyday Heroes
Capri Global Capital Ltd (Capri Loans), a leading non-banking financial company, has unveiled its latest brand campaign, #TarrakiKeHaath, a powerful tribute to the everyday hands that build India 鈥� from kirana store owners and taxi drivers to dhaba workers, tailors, and carpenters. Narrated by Capri Loans鈥� long-standing brand ambassador and acclaimed actor Pankaj Tripathi, the campaign celebrates the dignity, resilience, and aspirations of self-employed individuals and small business owners who form the backbone of Bharat鈥檚 economy. Conceptualized by Rediffusion Brand Solutions, the..
