Business Diversification Alert: After Birla, Adani Group Company Is Entering Into Cable Manufacturing
The stock is down by 25 per cent in 1 year and given multibagger returns of over 1,600 per cent in 5 years.
Adani Enterprises Limited has announced the incorporation of a joint venture company, Praneetha Ecocables Limited (PEL), through its wholly-owned subsidiary, Kutch Copper Limited (KCL). The joint venture, formed with Praneetha Ventures Private Limited, will see KCL holding a 50 per cent equity share in PEL. The newly formed entity will focus on the manufacturing, marketing, distribution, buying, and selling of metal products, cables, and wires.
As of now, PEL has an authorized and paid-up share capital of Rs. 10,00,000, divided into 100,000 equity shares of Rs. 10 each. The business operations of PEL are yet to commence, and hence, it currently reports no turnover. This strategic move marks an expansion into the metal products and cables sector, potentially broadening Adani Enterprises' market reach and business diversification.
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Adani Enterprises Ltd, the flagship company of the Adani Group, serves as an incubator for new businesses. Incorporated in 1993, it has diversified interests across mining, integrated resources management, infrastructure, solar manufacturing, and more. The company generates significant revenue from its Integrated Resource Management (IRM) and Mining Services segments. Adani Solar, a part of AEL, is the largest integrated solar manufacturer in India. Additionally, AEL is involved in road development, data centers, and airport operations. The company has a substantial capital expenditure plan, with a focus on airports, new industries, and road segments. Despite high debt levels, AEL continues to expand its business operations, aiming for growth across various sectors.
Adani Enterprises Limited has a market capitalization of over Rs 2.6 lakh crore. The stock is down by 25 per cent in 1 year and given multibagger returns of over 1,600 per cent in 5 years. It currently has a Price-Earnings (PE) Ratio of 70.
Disclaimer: The article is for informational purposes only and not investment advice.