Shares of Adani Enterprises Ltd have not been performing well recently but it has given stellar returns to its long-term investors. Should investors book profit?
Shares of Adani Enterprises Ltd have not been performing well recently but it has given stellar returns to its long-term investors. In the last 20 years, Adani Enterprises’ share price has surged from Rs 9.41 to Rs 2,082.10 levels, ascending around 221 times in this period. This means, in the last 20 years, this multibagger stock has delivered around 22,000 per cent return to its shareholders.
In the last one year, Adani Enterprises‘ share price has ascended from Rs 1,500 to Rs 2,082 levels, logging around a 40 per cent rise in this period. Likewise, in the last 5 years, this multibagger stock has risen from Rs 130 to Rs 2,082 apiece levels, clocking around a 1500 per cent rise in this period. In last 10 years, this multibagger stock has surged from around Rs 222 to Rs 2,082 apiece levels, appreciating to the tune of 850 per cent rise in this period. Similarly, in the last 20 years, this multi-bagger Adani stock has shot up from Rs 9.41 apiece levels to Rs 2,082.10 levels, logging near 22,000 per cent rise in these two decades time.
So, if an investor had invested Rs 1 lakh in this multibagger stock 10 years ago, its Rs 1 lakh would have turned to Rs 9.50 lakh today. Similarly, if an investor had invested Rs 1 lakh in Adani Enterprises shares 20 years ago, its Rs 1 lakh would have turned to Rs 2.21 crore today.
The stock of Adani Enterprises Ltd. quoted a 52-week high price of Rs 2,420.0 and 52-week low prices of Rs 1,333.3, respectively.
From lows of Rs 121 in March 2020, the stock has given a sharp upside rally to make an all-time high of Rs 1,908 in January 2022. Volumes were quite high during this period. Currently, after moving in the range of mere 300 points for the past 2 months, with relatively higher volume, the price has now breached the range on the higher side and from here we can see the stock making a new high.
The company reported consolidated sales of Rs 25,141.56 crore for the quarter ended 31-Mar-2022, up 32.58 per cent from the previous quarter’s Rs 18,963.4 crore and up 83.66 per cent from the year-ago quarter’s Rs 13,688.95 crore. Net profit after tax for the latest quarter stood at Rs 304.32 crore, up 30.08 per cent from the same quarter a year ago.
Should you Invest?
Last month, IIFL had given a sell call on Adani Enterprises with a target price of Rs 2,000. It had said that the stock has given a bearish flag breakdown.
Ravi Singh-vice president and head of research-ShareIndia, said: “Adani Enterprises will give value buying opportunity around Rs 2,080 – 2,050 levels for the target of 2,250 in the near term, stop loss of Rs 1,950. Investors may wait for the levels for fresh entry and existing investors may average their positions at lower levels.”
Ravi Singhal-vice chairman GCL Securities, said: “Sell Adani enterprises on rise that is Rs 2,144. Stop Loss Rs 2188 and target price Rs 2000.
Adani Enterprises Ltd., incorporated in the year 1993, is a Large Cap company (having a market cap of Rs 236453.33 Crore) operating in the diversified sector.