Buy Adani Enterprises: Edelweiss
Edelweiss research has maintained buy rating on Adani Enterprises, in their December 10, 2007 report. “Adani Enterprises (AEL) is leveraging its track record and experience as a 5-star trading house to embark on an ambitious asset-backed diversification and expansion plan that will exploit emerging opportunities in the infrastructure space in India. It is investing in power generation and coal mining where AEL has significant trading experience and market share. Our sum-of-the-parts (SOTP) value of AEL comes to Rs 1,048/share (including Rs 210/ share for existing trading business). The SOTP factors in large discounts to cover for execution risks on new businesses; however, given AEL’s history and promoter track record of execution at the Mundra port, there are upside risks to this value. We initiate coverage with a ‘buy’ recommendation,” says Edelweiss report.
