homemarket NewsAdani Enterprises Share Price: Here's what excited Cantor Fitzgerald about the company
Adani Enterprises Share Price: Here's what excited Cantor Fitzgerald about the company
Since the flagship company went public in 1994, Adani Enterprises has incubated and listed six other independent businesses, which have a combined market capitalisation of over $10 billion.
Cantor Fitzgerald, the US-based brokerage, liked Adani Enterprises as it is a flagship company and it gives exposure to multiple businesses, its Director of Equity Research and author of the report Brett Knoblauch told CNBC-TV18 in an exclusive interaction.
"What excited me about Adani Enterprises was just the collection of businesses that they have," Knoblauch said. He also spoke about why he chose to invest in the flagship company, which is involved in incubating and demerging businesses instead of standalone entities.
"We like it because it gives you a lot of diversification, to be honest. With investing in one fund (stock) you get exposure to several businesses, several innovative businesses that you otherwise wouldn't have buying one of the other businesses which are standalone play on one specific sector," according to Knoblauch, who also added that the leadership has proven the fact of growing at above market rates.
Cantor Fitzgerald initiated coverage on Adani Enterprises on Monday, January 29, with an "overweight" rating and a price target of ₹4,368, implying a potential upside of 50% from Thursday's closing levels.
Knoblauch also said that Adani Enterprises has a history of identifying growth opportunities and has been identifying growth businesses in India.
Since the flagship company went public in 1994, Adani Enterprises has incubated and listed six other independent businesses, which have a combined market capitalisation of over $10 billion.
"Here you are getting airports, roads, renewable energy, or fossil fuels with what they do with mining in commodity trading. So it's quite a diversified play on India," Knoblauch said.
He also expects the company's Airports business to demerge over the next five years and unlock value for shareholders. You can read more on that here.
(Edited by : Hormaz Fatakia)
First Published: Jan 30, 2024 8:56 AM IST
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