Adani Enterprises Ltd.
ISIN: INE423A01024 • Market Cap: ₹4.03 Lakh Cr
The 5-Pillar Quality Audit for Adani Enterprises Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (14.1%), Return on Capital Employed (5.1%), and equity compounding (11.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 1.07 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (4.9%) and 3Y PAT CAGR (30.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 54.17 vs PEG of 49.25 and Dividend Yield of 0.0%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.8%, backed by 18.1% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 30.7%)
Net earnings have compounded at 30.7% annualized, demonstrating operating leverage.
Consistent Market Standing (Large Cap)
Established player in the Metals & Mining sector with an overall fundamental quality score of 58/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 5.1%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 1.07)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Topline Stagnation (3Y Sales CAGR: 4.9%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking ADANIENT against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 58/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Metals & Mining Sector Peer Comparison
Compare ADANIENT directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Adani Enterprises Ltd. (ADANIENT)Current | 58/100 | ₹4.03 Lakh Cr | 54.17 | 5.1% | 1.07 | — |
| JSW Steel Ltd. (JSWSTEEL) | 73/100 | ₹3.13 Lakh Cr | 12.64 | 10.7% | 0.96 | View |
| Hindustan Zinc Ltd. (HINDZINC) | 88/100 | ₹2.34 Lakh Cr | 13.72 | 62.3% | 0.37 | View |
| Hindalco Industries Ltd. (HINDALCO) | 71/100 | ₹2.33 Lakh Cr | 14.19 | 12.7% | 0.71 | View |
| Tata Steel Ltd. (TATASTEEL) | 62/100 | ₹2.30 Lakh Cr | 20.82 | 11.9% | 0.84 | View |
| Jindal Steel Ltd. (JINDALSTEL) | 58/100 | ₹1.14 Lakh Cr | 41.77 | 8.8% | 0.43 | View |
Frequently Asked Questions: Adani Enterprises Ltd.
Q:What is the 5-Pillar Fundamental Score for Adani Enterprises Ltd. (ADANIENT)?
Adani Enterprises Ltd. has a RupeeTools Fundamental Score of 58/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (50/100), Financial Health (58/100), Growth (70/100), Valuation (32/100), and Ownership Quality (82/100).
Q:Is ADANIENT fundamentally strong for long-term investment?
ADANIENT currently holds a moderate quality rating of 58/100. While it operates in the Metals & Mining sector, investors should monitor its debt health before initiating long-term positions.
Q:Does ADANIENT pass the Coffee Can Investing filter?
No. ADANIENT does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ADANIENT compare against other Metals & Mining peers?
Within India's Metals & Mining sector, ADANIENT trades at a P/E of 54.17 and generates an ROCE of 5.1%. Compare its 5-Pillar score of 58/100 against top sector peers like JSW Steel Ltd. (73/100), Hindustan Zinc Ltd. (88/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.