Stock Review: Adani Enterprises

If you look at the last quarter's result, two significant things have started into this company. The entire coal trading activity has started giving them a better amount of realisation because they have gone into from mere trading, mining to logistics. That is important element as far as the margin realisation is concerned. So, the trading portfolio of Adani would probably give them higher margins because of higher shift onto coal. That is one.

They are also holding company to Mundra and Adani Power. In Adani Power, they have got larger capacity already executed and probably '11-12 would see a large jump into this capacity as well.

Along with that Mundra is already attracting higher amount of traffic. So, when you see the consolidated books for Adani, you find larger contribution coming in from port businesses as well. Along with that, the real estate business has kicked off in the last quarter as far as Ahmedabad real estate is concerned.

So, all put together, you find that this company is once again ready to give some good amount of growth into the bottom-line. This is a company, which is not a one-two quarter play, one will have to hold on to this company for at least two years to get the maximum benefit out of the business model that they have built in.