Adani Wilmar, Adani Enterprises, Adani Total, Adani Ports shares: Which stock to buy at current price?

Shares of Adani Group are again buzzing on Dalal Street due to their March quarter results this week. Where Adani Green Energy on May 1 reported 319 per cent growth in net profit for the quarter ended March 2023, Adani Total Gas posted on May 2 posted 20.74 per cent YoY growth in the bottom line during the quarter under review. Adani Wilmar and Adani Enterprises will report their financial results on May 3 and May 4, respectively. Is it the right time to buy any of the group stocks?

While sharing the pecking order, Vinit Bolinjkar, Head of Research, Ventura Securities said that he likes Adani Ports the most due to deep value in the counter. Shares of the company plunged 74.40 per cent to Rs 944.70 on a year-to-date basis till April 28. Bolinjkar further likes Adani Total Gas then Adani Wilmar, Adani Enterprises and lastly Adani Transmission.

Commenting on Adani Wilmar, the market watcher said that the company is a joint venture between Adani and Wilmar. It is not impacted by any fund squeeze as compared with other ventures. “This stock can outperform from here going ahead. It is in a sweet spot in the Indian market with the largest production capacity,” Bolinjkar said. Shares of Adani Wilmar have cracked 33 per cent YTD.

Being in the agriculture space and connected with Wilmar—which has a global commodity presence—provides the company with unparalleled farm-to-fork market intelligence.

Other Adani group stocks are in the infrastructure space. Bolinjkar advised investors to zero in on management commentary in Q4 results together with guidance and how well they manage their finance as they witnessed funding squeeze and  

 In an interaction with Sakshi Batra of Business Today TV, the market analyst further added that he sees up to 20 per cent upside in Adani Enterprises. Shares of the company have eroded 50 per cent of investors’ wealth during January-April 2023. He believes that Adani Enterprises will have a fair value of about Rs 2,200-2,300. “Minus the hydrogen business of Adani Enterprise, the entire portfolio is about Rs 3,000 per share on a SOTP basis. We have arrived at the present valuation after considering a 25 per cent discount,” he said.

 However, he thinks that Adani Enterprises needs growth capital for the next leg of growth. That will come after clearance from the Supreme Court-appointed committee. “Supreme Court-appointed SIT has asked for six months of extension so there is going to be a time lag going ahead. We may see further consolidation of the debt profile of the company which may bolster the health of the company,” he said.

For Adani Ports, Bolinjkar has set a target of Rs 1,500-1,600 by FY2025. Shares of the company declined nearly 17 per cent to Rs 681.20 on April 28, 2023 from Rs 817.90 on December 30 last year.  

 “Adani Ports may see a lot of growth going ahead as most of the capex has already been done. They have around Rs 20,000 crore of capex. The stock still may double in the next three years if you pull the capex down a bit,” he said adding Adani Total Gas is also undervalued at current valuation and the stock may also hit Rs 1,400-1,500 going ahead.  

Shares of Adani Total Gas have cracked 74.40 per cent YTD. Bolinjkar is also extremely optimistic about Adani Transmission. He believes that the transmission business is very intrinsic to India's ambition of doubling its power generation capacity. The story will play out once the growth capital will come back.  

He further advised investors not to consider Adani Green until the company get growth capital. His views came at a time when the benchmark equity index BSE Sensex and NSE Nifty are just 3 per cent and 4 per cent, respectively, away from their respective all-time high levels.  

Bolinjkar said, “It seems the market has discounted all the negatives. US Market is experiencing strong resilience despite recessionary pressure. Russia has currently the upper hand in the war with Ukraine. We are on the verge of the final rate hike. Thereafter, we may see a sharp fall in inflation. We could expect up to 10 per cent upside in S&P and Dow Jones. Indian market may significantly outperform going ahead.”  

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