Adani Enterprises share price hit its new all-time high in its sixth consecutive session on Monday. The stock is up 81.35 percent in the past year, compared with a 4.85 percent jump in Nifty and a 4.43 percent jump in the Nifty Media index. Adani Enterprises Ltd has gained about 16.7 percent in the past month.
Meanwhile, the Nifty Media Index, of which Adani Enterprises Ltd is a part, is up about 10.34 percent in the past month and is currently trading at 5094.1, up 1.08 percent on the day. Volume in the stock stood at 7.44 lakh shares today, compared to the daily average of 12.33 lakh shares over the past month.
According to stock exchange data, the stock traded at a price-to-earnings (P/E) multiple of 370.41, while the price-to-book ratio was 10.26. A higher P/E ratio shows that investors are willing to pay a higher price for earnings per rupee given by the stock due to better future growth expectations. Price-to-book value reflects the inherent value of a company and reflects the price investors are willing to pay even when there is no growth in a company.
Financial
The company reported consolidated revenue of Rs 25141.56 crore for the quarter ended March 31, 2022, an increase of 32.58 per cent from the previous quarter’s Rs 18963.4 crore and an increase of 83.66 per cent against the previous quarter’s Rs 13688.95 crore. Net profit for the last quarter was Rs 304.32 crore, up 30.08 percent from the same quarter a year ago.
According to stock experts, this share of the Adani group has risen following the surge in electricity demand in this summer season, leading to supply-demand constraints in the energy sector. Adani Enterprises is expected to benefit from the better earnings of Adani Power and Adani Transmission and therefore the stock regularly hits the upper circuit.
Recently, global brokerage and research firm Jefferies also reported that India’s energy sector is set to grow strongly in the next decade.
What should investors do?
Santosh Meena, Head of Research, Swastika Investmart, said: “The counter is in strong bullish momentum where it gained support at 100-DMA and created a strong base followed by a minor pullback and now it is resuming momentum for a fresh all -time high On a positive note, the previous swing high of Rs 2,421 is an immediate hurdle then we can expect a rally towards Rs 2,500/2,770 levels On the other hand, the area of Rs 2,300-2,250 has become a strong demand zone.
Manoj Dalmia founder and director-Proficient Equities Limited, said: “Adani Enterprises Ltd is trading at Rs 2550, up 2.05 per cent on the NSE. The stock is forming higher highs and lows as it had recently broken the previous swing high, we can expect a target as high as Rs 2,757, stop loss at Rs 2,433 and entry at the current price.
The expert opinions and investment tips in this News18.com report are their own and not the website’s or its management. Users are advised to contact certified experts before making any investment decisions.
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