Adani Enterprise, owned by India’s one of the richest men, Gautam Adani, has seen an upside of 90% in its stocks in a year. More and more people are interested in and buying stocks in the company. Big institutional firms like Goldman Sachs and Jefferies are all giving a buy signal, but what is the reason behind it?
What Is The Reason?
Adani Enterprise has recently started a new venture solemnly focusing on making copper products. This is a big deal for the company since they are new to the market with no prior experience in the industry. They are focused on making copper cathodes, which is a necessity for various industries.
A well-known and respected company named Jefferies has predicted that Adani Enterprise’s stock can see an upside of 17% because of their new business in the copper industry.
- There’s a steep growing demand for copper in India, especially after the entry of EVs and renewable energy and the mass promotion of it by the government.
- Adani’s copper cathode manufacturing facility is in a good location and can be more efficient than their competitors because of the geographical advantage they have. They can make copper products cheaper and maybe even better than others.
- Adani Enterprises has no plans to stop producing only cathodes; they will be diversifying and investing in other products like rods and acids from copper. They’re not putting all the eggs in the same basket and are diversifying their risk.
- This copper project is a big deal for Adani Enterprises. It’s one of the largest in the world, which shows they can handle big projects well.
Adani enterprises have also been thinking of getting into many new emerging businesses like green hydrogen and data centers. This shows they’re good at planning and doing big projects, which investors like.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies and not TheStockMarketLive. We advise investors to check with certified experts before making any investment decisions. TheStockMarketLive. We advise investors to check with a certified expert before making any investment decisions.
