Adanient 2950 CE Recommended abv 90, Sl 76, Trgt 106.
Maharashtra State Electricity Distribution Company (MSEDCL) issued letters of intent for the supply of 6,600 MW of hybrid solar and thermal power. Under the deal, Adani Green (AGEL) will supply 5 GW (5,000 MW) of solar power from Khavda, while Adani Power will supply 1,496 MW (net) of thermal power from the new 1,600 MW Ultra Supercritical capacity.
Analysis
- Return on Assets (ROA): – Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Adani Enterprises has an ROA of 91% which is a bad sign for future performance. (higher values are always desirable)
- Current ratio: – The current ratio measures a company’s ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company can be stable to unexpected bumps in business and economy. Adani Enterprises has a Current ratio of 17.
- Return on equity: – ROE measures the ability of a firm to generate profits from its shareholders’ investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Adani Enterprises has a ROE of 60%. (higher is better)
- Debt to equity ratio: – It is a good metric to check out the capital structure along with its performance. Adani Enterprises has a Debt to Equity ratio of 34 which means that the company has a low proportion of debt in its capital.
- Sales growth: – Adani Enterprises has reported revenue growth of –70% which is poor about its growth and performance.
- Operating Margin: – This will tell you about the operational efficiency of the company. The operating margin of Adani Enterprises for the current financial year is 97%.
- Dividend Yield: – It tells us how much dividend we will receive about the price of the stock. The current year dividend for Adani Enterprises is Rs30 and the yield is 0.04 %.
- Earnings Per Share: – It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Adani Enterprises is Rs10. The higher the EPS, the better it is for investors.
The stock opened with positive momentum, surpassing the previous day’s high of Rs.3002 Hence, recommended ITM Call option for intraday momentum.
