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Adani - Growth with Goodness?

Gautam Adani - the visionary
Gautam Adani - the visionary

Adani Group stands as an Indian multinational conglomerate company founded by Gautam Adani in 1988 under the name Adani Exports as a commodity trading business. It is headquartered in Ahmedabad, Gujarat.

The key people involved are Gautam Adani as Chairman and Karan Adani as CEO APSEZ (Adani Ports and SEZ). The Group has a diverse business culture in the field of agribusiness, energy, resources, logistics, real estate, financial services, aerospace and defence.

It’s been 32 years now and the Adani Group has positioned itself as a market leader by showing participation in almost every sector while serving worldwide. It has a combined revenue of $13 Billion and a market cap of $22 Billion as of May,2020.

There are six different Publicly listed enterprises. They are as follow-

1. Adani Enterprise

2. Adani Ports and SEZ

3. Adani Green Energy

4. Adani Power

5. Adani Transmission

6. Adani Gas

Qualitative Analysis

Their Vision:

“To be a world class leader in businesses that enrich lives and contribute to nations in building infrastructure through sustainable value creation.”


  • Commodity trading firm in 1988 and diversified into the import and export of multi-basket commodities.

  • In 1990 the Adani Group developed its own port in Mundra to provide a base for its trading operations.

  • In 1998, it became the top net foreign exchange earner for India Inc.

  • Coal trading in 1999 followed by a joint venture in edible oil refining in 2000 with the formation of Adani Willmar.

  • In 2002, handling 4 Mt of cargo at Mundra, becoming the largest private port in India.

  • In 2006, the company became the largest coal importer in India with 11 Mt of coal handling.

  • In 2008 purchasing Bunyu Mine in Indonesia which has 180 Mt of coal reserves.

  • In 2009 the firm began generating 330 MW of thermal power.

  • Adani Enterprises became the largest trading house in India importing coal with a market share 60%

  • In 2010, became India's largest private coal mining company after Adani Enterprises won the Orissa mine rights.

  • Bought Galilee Basin mine in Australia with 10.4 gigatons (Gt) of coal reserves.

  • In 2011, the Adani group also bought Abbot Point port in Australia with 50 Mt of handling capacity.

  • Firm achieved 3960 MW capacity and became the largest private sector thermal power producer in India.

  • In 2012 The company shifted its focus on three business clusters – resources, logistics and energy.

  • Emerged as India's largest private power producer in 2014.

  • In 2014, Adani Ports acquired Dhamra Port on East coast of India for ₹55 billion.

  • In 2015, Adani Renewable Energy Park signed a pact with the Rajasthan Government for a 50:50 joint venture to set up India's largest solar park with a capacity of 10,000 MW.

  • In 2016, Adani Aero Defence signed a pact with Elbit-ISTAR and Alpha Design Technologies to work in the field of Unmanned Aircraft Systems (UAS) in India.

  • In April 2016, secured approval from the Government of Gujarat to begin work on building a solar power equipment plant.

  • In September 2016, Adani Green Energy (Tamil Nadu), the renewable wing of the Adani Group, began operations in Kamuthu in Ramanathapuram, Tamil Nadu with a capacity of 648 MW.

  • In September 2016, the Adani Group inaugurated a 648 MW single-location solar power plant. It was the world's largest solar power plant at the time it was set up.

  • In December 2016, the Adani Group inaugurated a 100 MW solar power plant in Bhatinda, the largest in Punjab.

  • On 22 December 2017, the Adani Group acquired reliance the power arm of Reliance Infrastructure for ₹188 billion (equivalent to ₹210 billion or US$3.0 billion in 2019).

With over 30 years of growth story, the goodness might have fallen back and the latest stream of media coverage reveals a lot about it.

Adani: Growth through exploitation?

Adani faces backlash in Australia
Adani faces backlash in Australia

  1. On 27 February 2010, Central Bureau of Investigation (CBI) arrested Rajesh Adani, Managing Director of Adani Enterprises Ltd on charges of custom duty evasion to the tune of Rs. 80 lakh. (Full Story)

  2. This is just one of the page made solely to organise protests in Australia against Adani's mining activities. Adani was rejected for financing of the same projects after international media attention to Adani's grey working The Adani Group launched in 2014, with the support of a part of the Australian Government and Queensland, a mining and rail project (Carmichael coal mine) in Carmichael in Queensland's Galilee Basin for €21.5 billion[51] (over the life of the project, i.e. 60 years). This controversial mine, if implemented, would be the largest coal mine in the world. Its annual capacity would be 60 Mt of coal corresponding to the emission of 127 Mt of CO2, the equivalent of the total emissions of Belgium. In Feb 2020, Adani pleaded guilty and was heavily slapped with a fine.(Full Story)

  3. In 2014, the Adani group also launched a project to dig a channel through the Great Barrier Reef of Australia to facilitate the export of coal with dredging of 38 million meter cube reef sand. This controversial project with dubious financing aroused international opposition.

  4. Also there are pending cases in India against Adani's various operations in India concerning Environment norms and Safety standards of operation.(Full Story)

  5. In August 2017, Indian customs alleged the Adani Group was diverting millions of funds from the company's books to Adani family tax havens overseas. Adani was accused of using a Dubai shell company to divert the funds. The details of $235 million diversion were obtained and published by The Guardian. In 2014, the directorate of revenue intelligence mapped out a complex money trail from India through South Korea and Dubai, and eventually to an offshore company in Mauritius allegedly owned by Vinod Shantilal Adani, the older brother of Gautam Adani.

However, the group continues to grow exponentially in terms of diversification and project initiation.


Group Structure:

Adani Group Structure
Adani Group Structure


1. Adani Enterprise

2. Adani Ports and SEZ

3. Adani Green Energy

4. Adani Power

5. Adani Transmission

6. Adani Gas


1. Adani Infra Ltd.

2. Adani Power Rajasthan Ltd.

3. Adani Power Maharashtra Ltd.

4. Galilee Transmission Holdings Pty Ltd.

5. Galilee Transmission holding Trust

6. Galilee Transmission Pty Ltd.

7. Adani Agri logistic Ltd.

8. Adani Agrifresh Ltd.

9. Adani Australia Holding trust

10. Adani Mineral Pty Ltd.

11. Adani Mining Pty Ltd.

12. Adani Australia Coal Terminal Finance Company Pty Ltd.

13. Adani Australia Coal Terminal Pty Ltd.

14. Adani Australia Company Pty Ltd.

15. Maharashtra Easter Power Grid Company Pty Ltd.

16. Adani Wilmar

17. Adani Real Estate

18. Adani Institute of Infrastructure

19. Adani Capital

20. Adani Housing Finance

21. Adani Healthcare

22. Adani Foundation

23. Adani Aerospace and Defence

24. Adani Solar

25. Adani Electricity


Adani Enterprise:

Adani Enterprise is the flagship company of Adani Group which focuses on establishing new businesses in infrastructure and energy sector. It was started as Adani Exports but was converted into Adani Enterprise in March, 1999. The enterprise was established and listed in 1994. Businesses like APSEZ, Adani Power, Adani Transmission, Adani Greens and Adani Gas were demerged from Adani Enterprise and got independently listed on the stock exchange.

  • Listed in 1994

  • Market Cap: 31,702 Cr.

  • ROE: 3.90 %

  • Sales Growth (3 Yr): 5.91 %

  • Promoter holding: 74.92 %

  • Debt to equity: 0.25

  • Price to book value: 1.87

  • Credit Rating – A

Mergers & De-mergers:

Technical Comment:

Adani Enterprises Ltd. - Technical Analysis
Adani Enterprises Ltd. - Technical Analysis

Fundamental Comment:

  1. Revenue for the Q1 FY21 has declined almost 50% both on QoQ and YoY.

  2. PAT margin recorded negative, PAT declined -127% QoQ but it has grown at 175% in Q4FY21 YoY.

  3. Strong Cash holding and Goodwill in the market.

  4. Increased investments in fixed assets and long-term investments.

  5. Current liabilities have been paid off.

  6. Healthy Debt to Equity.

  7. Increased returns on Asset in FY 2020.

  8. Though the results for the quarter were weak but the strong numbers in the balance sheet and increased investments in assets is a green flag for the company.

Adani Ports & SEZ:

Adani Ports and Special Economic Zone Private Limited (APSEZ) is the largest private port company and special economic zone in India. It accounts for nearly one- fourth of the cargo movement in India. The company is headed by Karan Adani, CEO of APSEZ. The company's operations include Port management, logistics and the special economic zone. The company has presence across 10 domestic ports spread across 6 states. The company represents deepened hinterland connectivity.

  • Listed in 2007

  • IPO was oversubscribed 116 times

  • Amount raised in IPO - 1,771 crores

  • Market Cap: 73,153 Cr.

  • ROE: 15.19 %

  • Sales Growth (3Yrs): 12.05 %

  • Promoter holding: 63.57 %

  • Debt to equity: 1.14

  • Price to book value: 2.87

  • Domestic Credit Rating: AA+/stable

  • International Credit rating: BBB-

Technical Comment:

Adani Ports & SEZ. - Technical Analysis
Adani Ports & SEZ. - Technical Analysis

Fundamental Comment:

  1. Revenue declined by 17% in Q1 FY2021 on QoQ and has declined 15.4% YoY. But revenue was increasing from the last two fiscal years.

  2. Operating Income has declined 27% QoQ and 33% YoY. ROE has been declining for the last three years.

  3. Earning per share (EPS) above estimates for Q1 FY21.

  4. Cash Balance has increased, investment in fixed assets and long-term investment has increased. Also, current liabilities have decreased.

  5. The company has increased the debt capital by 34.18%.

  6. Operating Cash flow of the business has also increased.

  7. Though the quarter results have shown weakness but the strong balance sheet of the business will attract future opportunities. Also, the business stands as the market leader in terms of market capitalization.

Adani Power Limited:

Adani Power was established in August, 1996 as Adani Power Limited. The company is run by Gautam Adani, Rajesh S. Adani and Adani Enterprises Limited. The companydevelops and maintains power projects in India. It is the largest thermal power producer in India. The firm has a combined installed capacity of 10,440 MW with four thermal power projects across India. The company runs the following subsidiaries: Adani Power Maharashtra Limited, Adani Power Rajasthan Limited, Adani Power Dahej Limited, Mundra Power SEZ Limited and Adani Power (Overseas) Limited. In 2014, Adani Power overtook Tata Power to become India's largest power producer. Adani is the world’s first company to set up a coal-based Supercritical thermal power project registered under the Clean Development Mechanism (CDM) of the Kyoto protocol.

  • Listed in 2009

  • IPO was oversubscribed 21 times

  • Amount raised in IPO - 3,071 crores

  • Market Cap: 15,138 Cr.

  • Sales Growth (3 Yr): 5.38 %

  • ROE- 0%

  • Promoter holding: 74.97 %

  • Debt to equity: 7.16

  • Price to book value: -7.08

  • Credit Rating- BB+

Technical Comment:

Adani Power Ltd. - Technical Analysis
Adani Power Ltd. - Technical Analysis

Fundamental Comment:

  1. Revenue for Q1 FY21 has declined 33.33% YoY and around 16% QoQ.

  2. Gross Profit increased 54% QoQ but declined 42% YoY.

  3. Operating income increased by approx. 101% QoQ but declined 38% YoY.

  4. Cash and Cash equivalent increased multifolds by 3734% YoY.

  5. Investments in Fixed assets have increased by 14%.

  6. Debt is comparatively higher. Debt to Asset stands at 91% for FY2020 that means the company is highly financial leveraged.

  7. Positive operating cash flow.

  8. Strong competition comes from NTPC and NLC India.

Adani Transmission Limited:

Adani Transmission was integrated in 2013, it handles the commissioning, operations and maintenance of electric power transmission systems. Currently, the holding company holds, operates and maintains 11,000 circuit kilometres of transmission lines and around 18,000 MVA of power transformation capacity. The total transmission capacity of the company is 16,200 MW.In 2018, Adani Transmission Limited acquired Reliance Infrastructure’s Power Generation, transmission and distribution business in Mumbai. Today, ATL cater around 3 million customers in Mumbai with distribution network spanning over 400 sq. km.

  • Listed in 2015

  • Demerger of transmission business of Adani Electricity Ltd into Adani Transmission Ltd

  • Market Cap: 30,316 Cr.

  • ROE: 8.54 %

  • Sales Growth (3Yrs): 58.34 %

  • Promoter holding: 74.92 %

  • Debt to equity: 2.68

  • Price to book value: 5.85

  • Credit Ratings: AA+

Technical Comment:

Adani Transmission Ltd. - Technical Analysis
Adani Transmission Ltd. - Technical Analysis

Fundamental Comment:

  1. Revenue has fallen 14.40% in Q1 FY21 YoY and 22% QoQ. On the annual figures, revenue has increased 56% in FY20 and Gross profit by 62%.

  2. EPS YoY growth 49.96% and now stands at 2.91.

  3. Increasing cash and cash equivalents both quarterly and annually.

  4. Increased fixed asset spending and increased long term investments.

  5. Debt financing has increased by 36.71% in Q1FY21.

  6. Operating cash flow increased by 100% in FY20. Net Increase in Cash during FY20.

  7. The company holds a PE ratio of 40.87 which is quite high relative to its competitors.

  8. Competitors include Reliance Power, PTC India, Power Grid, Tata Power, NHPC Ltd, JSW Energy and Torrent power.

Adani Green Energy Limited:

Adani Green Energy Limited is the largest listed pure-play renewable power producer in India which develops, builds, owns, operates and maintains utility-scale grid-connected solar and wind farm projects. The company has a portfolio of solar and wind assets of 5,290 MW operational capacity and aims to scale up its infrastructure to produce 18GW by 2025 and 25GW by 2030.The electricity generated is supplied to central and state government entities and government-backed corporations. It has presence across 11 states with a portfolio of 46 projects and 18 projects under construction.

  • Listed in 2018

  • De-merger of Renewable Power Business of AEL into AGEL

  • Market Cap: 72,304 Cr.

  • ROE: 0 %

  • Sales Growth (3Yrs): 71.91 %

  • Promoter holding: 74.92 %

  • Debt to equity: 6.06

  • Price to book value: 88.57

  • Credit Ratings: A

Technical Comment:

Adani Green Energy Ltd. - Technical Analysis
Adani Green Energy Ltd. - Technical Analysis

Fundamental Comment:

  1. Revenue for the Q1 FY20 has increased 2.17% YoY and 20% QoQ.

  2. Gross profit has risen 7.69% YoY due to reduction in cost of revenue.

  3. Strong operating income 3.89B grown at 119% YoY. EPS growth 177% QoQ and on the annual front EPS has grown at 109%.

  4. Cash holdings increased by 92.33% YoY and 500% QoQ for Q4FY20.

  5. Investment in Fixed assets increased to 25.83B from 19.86Bn in Q3. Equity participation has increased by 80% YoY in Q4FY20.

  6. Positive Operating cash flow and Net cash flow.

  7. EPS stands at 0.29 and it is far behind its peers.

  8. High PE ratio implies expensive company to buy. The company is in its developing stage and has potential to outperform it peers.

  9. Competition comes from NTPC, NLC India and Orient Green.

Adani Gas Limited:

AGL is India's largest city gas distribution company mainly serving both industrial and residential customers in Gujarat. It supplies piped natural gas (PNG) to industrial, commercial and residential sectors and provides compressed natural gas (CNG) to transport sector. Currently, it serves around 0.4 million customers. The company has distribution network in Ahmedabad, Vadodra, Faridabad and Khurja.

  • Listed in 2018

  • De-merger of gas sourcing and distribution business of AEL into AGL

  • Market Cap: 20,517 Cr.

  • ROE: 33.91 %

  • Sales Growth (3 Yr): 19.92 %

  • Promoter holding: 74.80 %

  • Debt to equity: 0.31

  • Price to book value: 13.81

Technical Comment:

Adani Gas Ltd. - Technical Analysis
Adani Gas Ltd. - Technical Analysis

Fundamental Comment:

  1. Last two quarters have not been good in terms of Revenue where revenue for Q1 FY21 has fallen 50% both YoY and QoQ. Annual revenue for FY20 has increased 9.18%.

  2. Operating Income for Q1 FY21 has fallen 48% YoY and 50% QoQ.

  3. Annual EPS for FY20 rose by 73% to 3.62 and fallen 50% for Q1FY21.

  4. Investment in fixed assets and long-term investments have increased for FY20.

  5. More Equity financing and debts paid off. Operating cash flow increased by 1 B rupees or 25% YoY. Decrease in Cash flow.

  6. High PE ratio with high EPS growth. Market leader in terms of market capitalisation. The weak results can be associated with the shut-down of economic activities. The stock has the potential to outperform.



Adani Group, with a long term growth vision and a strong inflow of resources has businesses spread across a large number of domains. The group companies can prove to be successful in the long term perspective but faces a set back when it comes to corporate governance. The analysis shows that Adani's primary goal is "Growth" and "Goodness" comes last for Adani. The company has a history of various malpractices and has been in the crosshairs of government agencies at national as well as international level. But putting everything behind, the company is trying to improve its ESG initatives learning from its mistakes. The group subsidiaries has recent approvals for tenders of various government infrastructure projects. There is a strong growth vision behind the company and can be one of the largest asset holding group in Indian business sector.

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