Large Cap stock which is a holding company operating across various businesses like resource management, FMCG, Power, airports, data centers, and many more in focus following approval to setup a $10 Billion semiconductor chip manufacturing unit in India.
Price Action
With a market capitalization of Rs. 3,42,570 Crores, the shares of Adani Enterprises Limited were trading at Rs. 3,005 per equity share, down 0.33 percent from its previous day’s close price of Rs. 3,014.85.
What Happened
As per sources the Maharashtra cabinet panel has approved a $10-billion or Rs. 83,947 crores investment proposal by joint venture of Israel’s Tower Semiconductor-Adani Group to set up a semiconductor chip manufacturing unit at Taloja, Panvel
The proposed semiconductor manufacturing plant, located in the Navi Mumbai suburbs in Raigad district, will have an initial capacity of 40,000 wafer starts per month (WSPM) in the first phase, with an ultimate capacity of 80,000 WSPM, along with generation of 5,000 employment opportunities.
Of the total investment, Rs 58,763 Crores will be allocated for the first phase, of the project while the remaining Rs 25,184 Crores will be invested in the second phase
Although the project has received state-level approval, a joint application submitted by Israel’s Tower Semiconductor and the Adani Group is still under review by the India Semiconductor Mission (ISM) and the IT Ministry,
This venture follows a recent announcement by the Union Cabinet approving Kaynes Semicon Pvt Limited’s Rs 3,307 Crores outsourced assembly and testing (OSAT) plant in Gujarat, which will have the capacity to process 6.3 million chips per day.
About the Company
Adani Enterprises Limited is a holding company operating across various businesses like resource management, FMCG, Power, airports, data centers, and many more through its Joint Ventures/subsidiaries/associates.
As of Q1FY25, the promoters of Adani Enterprises Limited have increased their holding in the company from 72.61 percent in Q4FY24 to 74.72 percent in Q1FY25, by purchasing an additional 2.11 percent stake.
Financials & Ratios
Its Revenue from operations grew by 12.49 percent YoY from Rs. 22,644 Crores in Q1FY24 to Rs. 25,472 Crores in Q1FY25, accompanied by profits of Rs. 677 Crores to Rs. 1,772 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 9.73 percent and a return on capital employed (ROCE) of 9.87 percent. It has reported a high debt-to-equity ratio of 1.67.
Written by: Bharath K.S
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