Shares of Adani Enterprises Ltd edged higher in Friday’s trade as the company announced a significant acquisition by its wholly-owned subsidiary in the road transport sector.
In a filing with the stock exchanges, the Adani group flagship informed that its subsidiary, Adani Road Transport Limited (ARTL), has entered into a Share Purchase Agreement (SPA) to acquire a 100 per cent stake in D P Jain TOT Toll Roads Private Limited (DPJTOT).
According to regulatory disclosure, the acquisition is valued at an enterprise value not exceeding Rs 1,342 crore.
On Friday, shares of Adani Enterprises Ltd rose 0.8 per cent to hit a day’s high of Rs 2,420.10 on the BSE, up from the previous close of Rs 2,400.25. The company’s market capitalisation stood at Rs 2.7 lakh crore. The stock remains around 18 per cent higher than its 52-week low of Rs 2,026.90 and has gained 5 per cent over the past month.
The agreement was officially executed on September 11, between ARTL and the parties D P Jain TOT Toll Roads Private Limited, D P Jain & Co Infrastructure Private Limited, and DPJ-DRA Tollways Private Limited.
The company’s return on equity (ROE) stood at 33.52 per cent. On the valuation front, it commands a price-to-earnings (PE) ratio of 46.68 and a price-to-book (PB) ratio of 15.65
On the technical charts, Adani shares are placed above their 5-, 10-, 20-, 30-, 150- and 200-day simple moving averages (SMAs) but below 50- and 100-day SMAs. With a one-year beta of 1.6, the counter has exhibited high volatility over the past year.
Technical indicators show the Relative Strength Index (RSI) at 58.4, suggesting a mid-range momentum, while the Money Flow Index (MFI) stands at 64.2, also in the mid-range, reflecting balanced buying and selling pressure.