Adani Wilmar vs Adani Power vs Adani Port Despite the turmoil in securities markets due to the Russia-Ukraine war since February 2022, Adani Group has been thriving. Concerns such as escalating energy costs, increasing inflation, and monetary policy changes have not hindered the progress of Adani Group companies. The stocks of these companies are reaching new peaks, leading Gautam Adani to become one of the top three wealthiest individuals globally.
The Adani group has 7 stocks listed, with 5 of them registering an impressive 100% return in 2022. In addition to this, the group is expanding from its coal-focused past by venturing into the cement industry through the acquisition of Holcim’s shares in ACC and Ambuja Cements. Recently, the Adani group has expressed interest in acquiring NDTV, a media company. Adani Power and Adani Wilmar are among the top-performing Adani stocks year-to-date, while Adani Ports, the group’s primary revenue generator, has experienced an increase following positive results and new business ventures. For insights on the best Adani stocks to invest in, refer to our detailed stock analysis below.
Adani Wilmar (AWL)
Overview
Adani Wilmar was established in 1999 through a partnership between the Adani Group and Wilmar International of Singapore, with each holding a 50% stake. Through the utilization of Adani Group’s widespread port infrastructure and Wilmar’s expertise in sourcing and technology, Adani Wilmar has emerged as the top producer of edible oils in India. With an 18.7% market share in India’s edible oil sector, Adani Wilmar’s consolidated market share increases to 19.7%.
Adani Wilmar has 19 refineries and 23 plants situated across 10 states in India. The company’s largest single-location refinery is located in Mundra, with a capacity of 5,000 TPD. Apart from edible oils, Adani Wilmar provides a range of kitchen essentials such as wheat flour, rice, pulses, and sugar. The business verticals of Adani Wilmar include Food & FMCG and Industry Chemicals, making it the leading basic oleochemical manufacturer in India. In 2020, Adani Wilmar introduced ready-to-cook products under its flagship Fortune brand.
Financial Performance
Adani Wilmar has demonstrated robust financial results, with its most recent yearly revenue increase of 46.22% surpassing its 3-year revenue CAGR of 23.17%. Nevertheless, the quarterly report for June 2022 indicates a decrease, as net profit declined by 17% compared to the previous quarter, attributed to heightened input costs and inflation impacting margins.
The majority of the company’s earnings come from the edible oil business, primarily through its ‘Fortune’ brand. Despite having low profitability with EBITDA margins at approximately 2%, this business generates significant profits through increased sales volume. Adani Wilmar has demonstrated robust growth in both volume and value terms in Q1FY23, driven by expanding market share in edible oil, atta, and rice. In contrast to many other Adani Group entities that carry high levels of debt, Adani Wilmar successfully repaid all its long-term borrowings post its IPO listing, thereby enhancing its credit metrics.
Price Performance
Since its introduction on the Indian stock exchanges in February 2022, the Adani Wilmar stock price has increased by over three times from its initial price of Rs. 230 per share. This sets it apart from other IPOs from the previous year that are currently trading below their listing prices. Notably, Adani Wilmar’s stocks have surpassed the performance of 121 Asian IPOs valued at over $100 million in 2022.
The company remains significantly overvalued, with its trailing twelve months P/E ratios averaging 115x compared to the sector’s 62x P/E. Adani Wilmar has a market capitalization exceeding Rs. 93,000, with EPS and P/B ratios at 6.2x and 12.6x respectively. The 52-week high and low share prices for Adani Wilmar are Rs. 878 and Rs. 227. Over the past month, Adani Wilmar’s share price has increased by more than 8% to Rs. 718. Year-to-date, AWL shares have risen by over 160%, classifying it as a multi-bagger stock. This surge in prices is attributed to the increase in commodity prices, resulting in a margin advantage for Adani Wilmar on its unsold inventory.
Outlook
Adani Wilmar has successfully upheld its profit margins amidst challenges such as the Russia-Ukraine conflict, volatile edible oil prices, and inflation worries. The company is anticipated to expand its market presence through increased rural market penetration and the introduction of high-margin packaged goods. Positive demand prospects are also expected due to the festive season and heightened rural demand during the monsoon. Moreover, AWL benefits from significant competitive advantages, including its capacity to implement a price-ladder strategy supported by synergies across its business divisions and access to Wilmar’s market insights, which bodes well for the expansion of its FMCG operations. Consider checking Adani Wilmar’s stock price on Angel One before making any investment decisions.
Read Also: Adani Wilmar Share Price Target 2024, 2025, 2026 To 2030
Adani Power (APL)
Overview
Adani Power, India’s largest private thermal power producer, has a total power generation capacity of over 16,850 MW, with 1,600 MW currently under construction and scheduled for completion by 2028. The company’s thermal plants are located in Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh, and it also possesses a 40 MW solar power project in Gujarat. Adani Power was publicly listed on stock exchanges in 2009.
Financial Performance
Adani Power has experienced continuous revenue growth over the last 5 years. With a 12.56% revenue growth rate, APL has surpassed its 3-year CAGR of 6.26%. Despite this, the company only started generating profits from FY 21. In FY22, APL achieved an ROE of 89.48%, exceeding its 5-year average ROE of 18.4%.
The most recent quarterly results for June 2022 revealed a 17-fold increase in consolidated net profit to Rs 4,780 crores compared to the previous year. Additionally, revenue in Q1FY23 saw a surge of over 100% year-on-year. This rise in revenue can be attributed to the escalation in PPA tariffs resulting from higher imported coal prices and increased usage of alternative coal, as well as the reinstatement of the 1,234 MW bid-2 PPA with Gujarat discoms.
Price Performance
The Adani Power stock price has shown consistent growth over the past year, yielding impressive returns of 288%. Following an agreement to supply power to Bangladesh starting December 2022, the stock price surged and saw a 6% increase over two consecutive trading sessions. Year-to-date, APL shares have risen significantly by over 286% to reach Rs. 385 in 2022. This translates to a substantial increase from an investment of Rs. 1 lakh at the beginning of the year to almost Rs. 4 lakhs. The stock’s 52-week price range is between Rs. 91.05 and Rs. 432.5. The recent peak was driven by Adani Power’s acquisition of DB Power, facilitating its expansion in Chhattisgarh. Adani Power’s stock has gained nearly 500% over the past three years. While slightly overvalued, the company’s trailing twelve months price-to-earnings ratio stands at an average of 15.8x compared to the sector’s 14.8x. With a market capitalization exceeding Rs. 1.48 lakh crores, Adani Power’s earnings per share and price-to-book ratio are at 24x and 27x, respectively.
Outlook
Adani Power’s underlying aspects remain positive due to the anticipated increase in power demand driven by population growth. The adoption of remote work and hybrid schedules has additionally boosted power requirements. Moreover, amidst the global surge in energy costs, the government is considering expanding thermal power production alongside renewable energy initiatives, which is advantageous for APL. However, the primary worry regarding Adani Power’s performance is its escalating debt load. It is advisable to monitor Adani Power’s stock price on Angel One before making any investment decisions.
Read More: Adani Power Share Price Target 2024, 2025, 2027, 2030 – 2035 Our Informations
Adani Ports (APSEZ)
Overview
Established in 1998, Adani Ports and Special Economic Zone (APSEZ) is India’s leading commercial port operator, overseeing 13 domestic ports situated across various states. APSEZ currently manages almost a quarter of the country’s cargo movement and aims to boost its market share to 33% by FY25. The company has been publicly listed on Indian exchanges since 2007. Adani Ports’ operations are diversified into Ports, Logistics, and SEZ. Through its subsidiary Adani Logistics, APSEZ manages three logistics parks in Haryana, Punjab, and Rajasthan, handling 500,000 TEUs. Recently, the subsidiary acquired ICD “Tumb” (Vapi) from Navkar Corporation for Rs. 835 crores.
Financial Performance
Adani Ports has demonstrated consistent growth over the last 5 years, primarily due to its strategic partnerships with MSC and CMA CGM, TotalEnergies, and IOCL in the container segment. As a result, the company’s cargo volume has increased by 13% CAGR sequentially, marking a 4x growth in comparison to All India’s CAGR of 3% in FY22. Furthermore, Adani Ports’ revenue growth of 24.58% in FY22 has surpassed its 3-year CAGR of 13.61%. However, APSEZ’s Net Debt/EBITDA ratio of 3.4x in FY22 has raised concerns regarding financial stability in times of economic downturns.
APSEZ has reported impressive performance in the first quarter of FY23, with record-breaking quarterly cargo volumes of 91 MMT, marking an 8% year-on-year growth. Additionally, its logistics segment experienced a significant 56% increase in EBITDA compared to the previous year, leading to Adani Ports achieving its highest quarterly EBITDA to date.
Price Performance
Adani Ports’ shares reached a record high of Rs 958.8 in Tuesday’s trading, pushing its market capitalization to Rs. 2 lakh crores. The stock has risen by 8% in the last week and 20% in the previous month due to positive business prospects reflected in its strong Q1FY23 earnings. Over the past 3 years, Adani Ports’ stock price has surged by more than 153% and has grown by nearly 30% year-to-date. With a remarkable increase of 177% in two years, Adani Ports is viewed as a high-return investment. Despite trading at a higher TTM P/E multiple of around 44x compared to the sector’s 30x average, investors remain optimistic about the stock, especially due to APSEZ’s recent acquisitions.
Outlook
APSEZ is poised to sustain its growth momentum by launching two new terminals within the next 6 months. Following the acquisitions of Haifa Port and Ocean Sparkle, Adani Ports is expected to further enhance its performance. However, a potential downside risk lies in global protectionism impacting trade volumes and potentially affecting APSEZ’s performance. For those considering investing in Adani Ports, it is recommended to review the share price on Angel One before making a decision.
Read More: Adani Ports Share Price Target 2024, 2025, 2026 To 2030 Images More Details
Adani Wilmar vs Adani Power vs Adani Port
The stock prices of all Adani Group companies have risen significantly this year, with certain stocks experiencing greater increases. Clearly, the momentum and anticipated future profit growth are propelling these Adani stocks. Despite appearing as promising investments due to the positive outlook, there is a possibility that they are currently overpriced.
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Company
|
CMP (Rs.)
|
YTD performance (%)
|
3-Year Performance (%)
|
|
Adani Wilmar
|
708.70
|
163.80
|
NA
|
|
Adani Power
|
384.55
|
285.71
|
495.28
|
|
Adani Ports
|
947.85
|
29.79
|
153.30
|
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