Adani Enterprises stock rises even as Q2 net profit halves, revenue declines

In the last six months, Adani Enterprises share price has risen 20 percent.

Adani Enterprises shares rose on November 3 even after the Adani group flagship reported a 51 percent on-year decline in net profit at Rs 227.8 crore in the September quarter due to decreasing coal prices. Its revenue from operations came in at Rs 22, 517 crore, falling 41 percent from the year-ago period.

Adani Enterprises shares were trading 2.5 percent higher at Rs 2,271.80 on the National Stock Exchange (NSE).

According to analysts, Adani Enterprises has made significant progress in its strong incubation pipeline during the first half of FY24. "The company's result showcases the emergence of key incubating businesses, including green hydrogen integrated manufacturing ecosystem, airports and roads, which collectively contributed 48 percent of the overall EBITDA," said Shreyansh Shah, research analyst, StoxBox.

“We are fundamentally reshaping the essence of incubation scale and velocity,” Adani Group Chairman Gautam Adani said. “Adani Enterprises covers sectors that span energy, utility, transport, D2C, and primary industries. With many ventures now market-ready and thriving, our H1 FY23-24 results have been boosted by the core infra incubating businesses, thereby being a strong testament to our incubating ventures."

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Following the earnings announcement, shares of Adani Enterprises fell around 3 percent from the day's high to close lower at Rs 2,214 on the National Stock Exchange (NSE).

The stock has fallen around 42 percent this year. It plunged significantly after January 24, 2023, when US-based short seller Hindenburg Research accused the Gautam Adani-led conglomerate of alleged financial misinterpretation and stock manipulation. The Adani group, however, has denied any wrongdoing.

Over the past six months, the share price has recovered 20 percent. The stock has delivered a of over 1,000 percent in the last five years.

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