Adani Group-backed flagship company, Adani Enterprises will be in focus on BSE and NSE during the next week's trading session. The latest development in Adani Enterprises is that its wholly-owned subsidiary has acquired a 49% stake in a UAE-based entity named Sirius Digitech. Also, Adani is set to deliver up to 130% dividend soon. After its Q4 results, the consensus of analysts is BUY on Adani Enterprises' share for the 1-year average target of Rs 4,069.
Adani Enterprises Share Price:
Adani Enterprises' share price is currently at Rs 2799.20 apiece, up by on 1.2% on BSE after market hours of May 10. The market cap is around Rs 3,19,109.11 crore.
The stock's 52-week high and low are at Rs 3,349.35 and Rs 1,858.95 apiece respectively. YTD, this flagship Adani shares is down by 4%. However, in a year, the stock jumped by 42.5%.
But in 5-years, Adani Enterprises gives impressive returns to the tune of 2,253.26%.
Adani Enterprises Big Announcement:
As per the regulatory filing, Adani Enterprises announced that its wholly-owned subsidiary, Adani Global Limited, Mauritius, executed a Share Purchase and Shareholders' Agreement under which Adani Global has acquired 49% stake in a UAE-based entity named Sirius Digitech from Sirius International Holding.
Further, it said that the Shareholders Agreement contemplates that as a part of the proposed transaction, the Company would also divest its entire stake in two of its Indian subsidiaries, in favour of Sirius Digitech at fair market value, calculated by an independent valuer, and a separate disclosure in this regard shall be submitted to the stock exchanges, as and when such divestment is consummated.
Sirius Digitech was incorporated by Sirius Holding on January 18, 2024, in Abu Dhabi, UAE. It is yet to commence its business operations. The company is engaged in the business of deploying an integrated ecosystem of digital platforms and identified technology solutions, leveraging inter alia, artificial intelligence, machine learning, internet of things, cybersecurity and/or blockchain, across industries and areas, including FinTech, Healthtech, and Greentech, and providing access to such solutions across the Indian and global markets.
The transaction cost is around 24,500 dollars.
Adani Enterprises Dividend:
At the latest, the upcoming corporate action is of dividend rewards to the tune of 130% by Adani Enterprises.
The company has declared a Dividend of Rs. 1.30 (@ 130%) per Equity Share of the face value of Re. 1 each fully paid up for the Financial Year 2023-24, subject to approval by shareholders of the Company at the ensuing AGM.
For the same, the company fixed Friday, 14th June 2024 as the 'Record Date' to determine the entitlement of the members of the Company to receive a dividend of Rs. 1.30 (@ 130%) per Equity Share having a face value of Re. 1/- each fully paid up for the financial year 2023-24. The said Dividend, if declared by the shareholders at the ensuing AGM, shall be paid on or after 30th June 2024, subject to deduction of tax at source as applicable.
As per the Trendlyne data, Adani Enterprises has delivered up to 24 dividends since August 2001. Last year, the company paid dividends of Rs 1.20 per share.
Additionally, Adani Enterprises has carried 1 stock split and bonus issue in its history.
This Adani stock turned ex-split in the ratio of 1:10 in July 2004. At the 1:10 split ratio, the face value of Rs 10 of Adani Enterprises' shares was split into a face value of Rs 1 each. Meanwhile, Adani turned ex-bonus in December 2009 for its bonus share ratio of 1:1.
Adani Enterprises Target Price:
As per Trendlyne data, the consensus recommendation from 2 analysts for Adani Enterprises Ltd. is STRONG BUY. Also, EPS is expected to grow by 45.6% in FY25. Hence, the 1-year average target price on Adani Enterprises is Rs 4,069, hinting 45% upside from the current market price.
On a consolidated basis, Adani Enterprises posted a decline of 39% in net profit in Q4FY24 to Rs 449 crore as compared to Rs 735 crore in the same quarter a year ago. Q4FY24 revenue stood at Rs 29,630 crore, marginally up by 1% YoY. Further, EBITDA stood at Rs. 3,646 cr vs Rs. 3,974 cr in Q4 FY23 (Q4 FY23 included cumulative EBIDTA of Rs. 1,038 Cr for 3 HAM Projects in Road business).
Adani said, the emerging core infra businesses comprising of ANIL Ecosystem, Airports and Roads are making significant strides in their operational performance. The contribution of these businesses to the overall EBIDTA has consistently increased to 45% for FY24 compared to 40% in FY23.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.In advises users to consult with certified experts before making any investment decision.
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