Adani Enterprises would be replacing Shree Cements with its entry in Nifty 50 index. Today it has a market cap of Rs 4.1 lakh crore.
Aiming to establish diverse new businesses, Adani enterprises is all set to make entry in the Nifty 50 index from September 30. The flagship entity of Adani Group and an incubator would be replacing Shree Cements with its entry in the index.
After Adani Ports & SEZ, this will be the second Adani Group entity that will be a part of Nifty. Seven companies from the group already feature among the 50 biggest companies in India.
Despite Adani Enterprises drawing not much attention among Adani Group of companies, the returns it has delivered are good in numbers. Data of the last three years says, delivering around 2,400 percent returns made Adani Enterprises today the 11th biggest listed company in India with a market cap of Rs 4.1 lakh crore. During same period, Nifty 50 in total delivered meagre 46 percent returns.
Apart from Adani Enterprises’ unreasonable valuations, investors and analysts still continued to praise its business, says market experts. In media reports the company is termed as “the goose that lays golden eggs”.
The chairman and founder of Adani Group, Gautam Adani during his recent speech said that Adani Group foresee an investment of 100 billion dollars over coming decade keeping green energy space as priority.
Majorly it will come through Adani Enterprises via its subsidiary Adani New Industries Limited. The firm will be handling its venture into renewable energy, green hydrogen and downstream products like ammonia, urea and methanol.
Along with that, managing airports, data centres, building roads and defence equipment are some projects that Adani Enterprises covers. Analysts say, these businesses are on the verge of gaining momentum and should be value accretive in the short to medium term.
Also, Adani Enterprises will be seen in the Nifty 50 Shariah index. Whereas on the other hand, Adani Total Gas is being included in the Nifty100 Alpha 30 index and Adani Wilmar in Nifty500 Shariah index.
Ever since its entry on March 27, 2020 until its exit, Shree Cement could deliver 21 percent returns only. However, it should be noted that during this period the Indian economy was not performing well due to the pandemic, which negatively impacted many other stocks too.