INSUBCONTINENT EXCLUSIVE:
Mumbai: Adani Enterprises, one of the best performers on Dalal Street in 2017, is no longer popular with institutional investors
Brokerage CLSA said it has dropped coverage of Adani Enterprises due to lack of investor interest amid demerger of various businesses and
project hurdles.
The demerger of better parts of the business and resistance to the coal operations in Australia have led to low interest in
Furthermore, it also plans to demerge the city gas distribution business
coal operations in Australia from an anti-coal lobby has caused an indefinite delay in getting the project off the ground.
On the earnings
front, the company has reported a decline in consolidated profit after tax in four out of the last five financial years
In the financial year ended March 2018, the company reported a 36 per cent decline in profit after tax from the previous financial year to
Sales in the financial year 2017-18 rose 2 per cent to Rs 37,381.6 crore.
The stock has fallen 33 per cent so far in calendar year 2018
compared to a gain of 4.7 per cent in the benchmark Sensex during the same period
The stock ended up 4.5 per cent at Rs 110.70 on Friday.
In 2017, the stock had gained 117.6 per cent compared to a gain of 28 per cent in
Baliga said one should stay away from the stock for the time being.
