ADANI-Growth with goodness

Adani is an Indian multinational conglomerate with its flagship business in mining operations.All their new business ventures are fuelled by the activities of their flagship company Adani Enterprises.Adani was founded by Gautam Adani in 1988 as a commodity trading group in Ahmedabad, India.Their first major breakthrough was the Mundra port which they built in 1998 to import and export multi-basket commodities.This started a new chapter in the groups history where they started coal trading and later diversified into edible oil refining in 2000 with the formation of Adani Wilmar.They moved on to purchase the Bunyu Mine in Indonesia and won the rights to the Orissa Mines which cemented their position as the largest coal producers in India.They continued their expansion by privatising ports and bettering their energy companies.Adani had their public issue in September 1994 at a price of Rs.140 as a trading company.

Adani currently trades at Rs.2300-2400 with a market cap of Rs.2.5T.Today, they have diversified into more than 25 companies with 7 publicly traded companies and a pan-India presence. Recently, they have taken over 12 government run airports and 3 ports which has led to their massive price increase in the recent times.This gain has allowed Gautam Adani the sole owner of Adani Enterprises to rise to the richest person in Asia and the 5th richest person worldwide with a net worth of 125B$.Adani is also moving a lot towards sustainable energy with the opening of the largest solar farm in Tamil Nadu and are heavily investing in Indian startups as well.

Adani has a median price forecast of Rs.3050 with a high estimate of Rs.3430 and a low estimate of Rs.1980.The median represents a 21% increase from the last trading price.Most analysts hold a buy consensus with 3 suggesting a high growth period after the prolonged consolidation stage from 2003 to 2019.Adani is an extremely risk taking growth company with all their financial ratios and scores indicating good growth phase.The most recent takeover of the airports and the positive publicity owing to the owner Gautam Adani becoming the 5th richest person has allowed good short term performance as well.

Adani is headed by Gautam Adani and Mansukh Bhai Adani who have had really humble beginnings and have created in less than 3 decades what most have made in a century.Their meteoric rise is sometimes attributed to their political connections and they have faced heavy criticism for the same.Despite all this negative publicity ,they have always believed in providing quality products and growing sustainably.They have 6 major businesses with each having a profound impact and constant growth as seen from the Net Profit CAGR.Adani Enterprises originally called Adani Exports Ltd. is responsible for the import and export of 28 commodities such as agricultural items, plastics and packaging.Adani ports is the integrated ports and logistics company which handles more than 27% of all imports to India and this is expected to grow heavily in the near future.Adani Power is the largest thermal power producer and is responsible for all power projects and maintenance in the Indian subcontinent.A more recent company would be Adani Transmission Ltd. which was originally conceived as a joint venture between Reliance and Adani for electricity transmission and distribution but was soon under control of Adani Enterprises.Furthering their stance on energy, they started Adani Gas Ltd. which transports natural gas for industrial, commercial and household use in Gujarat and Rajasthan.Lastly as the world moves towards sustainable energy, they have also heavily invested in Adani Green Energy Ltd. which holds twelve solar forms generating 1000MW of clean energy.The only weak points is the future leadership which the world is unsure of seeing the large number of successors.But, rest assured at least for the next decade the future seems bright as they have been expanding heavily and have also gotten a 3B$ investment from UK in a recent meeting held in Ahmedabad between UK prime minister Boris Johnson and Gautam Adani.