diversified
Adani Enterprises
ADANIENT · Nifty 50
₹2,951.9
Price 2026-06-17
At a Glance
Fundamental
45/100
WEAK
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Adani Enterprises scores 45/100 on fundamentals (weak). Adani Enterprises: PE below historical average. BROAD EXPANSION regime.
Fundamental Score: 45/100 · WEAK · 1 signals detected
DuPont Analysis
ROE 7.6% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 7.59% is modest margin-driven and stable. Net margin of 7.8% × asset turnover of 0.3x × leverage of 3.2x.
What This Means
Net margin of 7.8% means the company keeps ₹7.8 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.30x means the company generates ₹0.30 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 3.2x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
38.5%
Operating
18.1%
Net
7.8%
Gross margin 38.5% → operating margin 18.1% → net margin 7.8%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.4x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
ADEQUATEInterest covered only 2.8x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 7.5x is high — monitor leverage.
Free Cash Flow
MODERATEFCF margin negative at -39.1% — spending more than earning. Check capex cycle.
Key Watchpoints
Breaks above ₹3099 (+5%)
Trend reversal confirmation
Breaks below ₹2804 (-5%)
Further downside risk
PE reverts to 5Y median of 39.7
Valuation normalization
Diversified sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
One-off items significantly inflating reported profit. Core earnings may be much lower.
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only 0.4x net income. Profit not converting to cash — aggressive accounting possible.
Special charges of ₹9053K Cr. May indicate restructuring, impairment, or one-time costs.
Working capital is consuming significant cash. Operational efficiency declining.
Potential accounting concerns. Cross-check with earnings quality flags.
Governance structure concerns. Independent director representation may be weak.
Modern asset base. Lower near-term capex requirements.
Collection cycle changing. Collection improving — positive for cash flow.
Strong insider alignment. Promoters have significant skin in the game.
🔴 3 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes