Scanning of Business Environment MGMT102 (PSDA-1)

STOCK EXCHANGE- ADANI INDUSTRIES

Mayank Jain
Bba- Llb
Section B
Enrolment Number: A3221521087
Index

Sno. Topic
1 Introduction
2 Adani Enterprises Ltd
3 History Of Adani Enterprises Ltd
4 Growth Of Adani Industries Ltd
5 Which business sector did they focus on most and
helped them to rise to the top?
6 Which business environment did they focus on most
and helped them to rise to the top?
7 Conclusion
Introduction
What is the business environment?
Sum or collection of all internal and external factors such as employees,
customers’ needs and expectations, supply and demand, management, clients,
suppliers, owners, activities by government, innovation in technology, social
trends, market trends, economic changes, etc. These factors affect the function of
the company and how a company works directly or indirectly. Some of these
factors influence the company’s or business organizations’ environment and
situation. It helps in identifying business opportunities, tapping useful resources,
assists in planning, and improves the overall performance, growth, and
profitability of the business. There are various types of Business Environments
like Micro Environments and Macro environments.
Stock Exchange
The Stock Exchange is an organized second-hand market for the purchase and
sale of corporate securities. In this, regulated market securities are bought and
sold for investment and speculation. The securities traded on a Stock Exchange
consist of shares, debentures, and bonds issued by companies, corporations, and
the Government to the public.
There are two types of stock exchanges in India
BSE (Bombay Stock Exchange)
Bombay Stock Exchange is the oldest stock exchange in India as well as Asia.
It is an integral component of the "$1 trillion" club, having the 11th largest market
capitalization value at $2.2 trillion. BSE stock exchange was founded by
Premchand Roychand in 1875 and is currently managed by Sethurathnam Ravi,
serving as the chairman.
Trading on the BSE share market must be done via a brokerage firm for a
predetermined fee. However, certain preferential investors who make significant
trades on the BSE stock market are granted access to direct investments. BOLT-
Bombay This stock exchange uses an online trading platform to facilitate
effective trading. All transactions in the BSE online market are settled using a
T+2 rolling settlement processing takes two days. SEBI, or the Securities and
Exchange Board of India, is in charge of maintaining rules for this stock
exchange's efficient operation through regulation.
Advantages of BSE:
A company listed under the Bombay Stock Exchange can enjoy several benefits,
such as:
 Legal Supervision
 Timely information display
 Adequate pricing rules
 Hassle-free capital generation
 Collateral guarantee (Groww, Bombay Stock Exchsnge)
NSE (National Stock Exchange)
The National Stock Exchange of India Limited is the biggest financial exchange
in the nation. Since its incorporation in 1992, it has developed into a
sophisticated, automated, electronic system that provides trading facilities to
investors all over the nation. According to a metric of its trading, this exchange
system came in fourth place globally in 2015. The Indian government requested
the establishment of this stock exchange in 1994 to increase transparency in the
nation's capital market. The Pherwani Committee and a group of top financial
institutions established this stock exchange, which included a variety of
shareholdings from both domestic and foreign investors.
Additionally, it was the first stock exchange in the nation to introduce electronic
trading capabilities, which made it easier to unite investors from all over the
nation under one roof. NSE ranked 11th among the largest stock exchanges in
terms of volume as of 2018, with a total market capitalization exceeding US $2.25
trillion.
An electronic limit order book is used for trading on this Indian stock exchange,
and a trading computer executes order matching. This entire process is entirely
driven by orders and is not influenced by specialists or market makers; as a result,
when investors place a market order, it is automatically matched with a limit
order. Therefore, sellers and buyers in this market benefit from maintaining their
anonymity. An order-driven market also provides investors with more
transparency by showing each buy and sell order in the trading system. These
NSE orders are placed through brokers, who frequently offer their clients the
option of trading online. Several institutional investors can also
use this "direct market access" facility direct orders can be entered into the trading
system.
Every day of the week, excluding Saturdays, Sundays, and other holidays
declared by the stock exchange, the NSE market's equities segment is open for
business. The timing of the market is as follows
Pre-opening session –
 Pre-opening session –Order entry opens at 9.00 hours Order entry closes at
9.08 hours
 Regular session – The market opens at 9.15 hours The market closes at
15.30 hours
Advantages of NSE:
NSE offers several benefits of listing with it. Some of them are as follows
 Comprehensive visibility
 Makes for a premier marketplace
 Biggest exchange in the country
 Fast transactions (Groww, National Stock Exchange)
Why does Stock Price change every second?
Stock prices change every day by market forces. By this, we mean that share
prices change because of supply and demand. If more people want to buy a
stock (demand) than sell it (supply), then the price moves up. Conversely, if
more people wanted to sell a stock than buy it, there would be greater supply than
demand, and the price would fall.
High demand for a stock drives the stock price higher, but what causes that high
demand in the first place? It's all about how investors feel:
 Market sentiment toward the stock.
 Market sentiment toward the industry.
 Market sentiment toward the stock market.
 Confidence in the economy.
Adani Enterprises Ltd
The Ahmedabad-based Adani Group is a multinational conglomerate in India.
Gautam Adani established it as a commodity trading company in 1988, with
Adani Enterprises as its flagship. Port management, electric power generation,
transmission, renewable energy, mining, airport operations, natural gas, food
processing, and infrastructure are just a few of the Group's diverse business
ventures. As of 2022, the group operated at 100 locations across 70 countries,
bringing in over US$25 billion in annual revenue, US$2.5 billion in net profit,
and $100 billion in total assets. Adani Group projected revenue to increase from
$45 billion $4 billion in net profit in 2022–2023 to $90 billion and $10 billion in
projected revenue in 2023–2024. Over 100,000 people work for Adani Group
directly and indirectly worldwide.
Adani Group became an Indian conglomerate to cross US$100 billion in market
capitalization. It crossed the market capitalization of US$200 billion in April
2022 becoming the third Indian conglomerate after Tata Group and Reliance
Industries to do so. In November 2022, Adani Group’s market capitalization
reached the top of $280 billion ( INR 24 trillion) and market capital vision of $1
trillion by 2029, surpassing Tata Group.

History Of Adani Enterprises Ltd

Adani Enterprises Ltd has been established for a very long time it has been a long
journey of ups and low for Adani Enterprises Ltd here’s a brief history of Adani
Enterprises Ltd from 2015-2022
2015
- Adani signs MoU with Australia's Woodside Energy for Energy
Cooperation
2016
- Adani Wilmar and Ruchi Soya propose to join hands to create one of
India’s leading FMCG companies
2017
-Adani Enterprises acquires Adani Infrastructure Pvt Ltd.
-'Adani reaches royalties agreement with State Government'.
- 'Adani Project Gets Green Light.
-Adani Australia project hits protest wave.
-Adani Group eyes global expansion with new container port in
Malaysia.
2018
-Adani Defence & Aerospace and Elbit Systems inaugurate India’s first
private UAV manufacturing facility.
2019
-Adani Enterprises incorporates JV with Sainik Mining and Allied
Services Company for carrying out mining activities in
Chhattisgarh.
-Adani partners with US-based Digital Realty to build data
infrastructure.
2020
-Adani Enterprises commenced commercial operations at Lucknow
International Airport.
2021
-Adani Enterprises bags India’s largest expressway project.
-Adani Enterprises wins Rs.1838cr highway project from NHAI in
Kerala.
And Below is the Share Chart of the Adani Enterprise Ltd From 2015-2022
(moneycontrol, 2022)
Growth Of Adani Industries Ltd
Particularly, Adani Enterprises, the group's flagship company, has experienced
an outstanding rally.
Let's examine the rally's motivations and how the business assisted Gautam Adani
in becoming the third-richest person in the world.
1) Membership in the Nifty 50 index
Adani Enterprises shareholders experienced a wave of joy earlier this month
when it was revealed that the business would be added to the prestigious Nifty 50
index. The Nifty 50 is a grouping of the top 50 stocks listed on the NSE. The 50
fatty Indian stocks are listed here. Adani Enterprises has accomplished much by
ranking among India's top 50 companies. This could be one reason why the stock
has continued its uptrend in recent days
2) Stellar financial performance
For the quarter that ended 30 June 2022, the company's total income was Rs 408.4
bn which is 64% higher if compared sequentially. In the March 2022 quarter, it
had a total income of Rs 248.6 bn.
If compared on a year-on-year (YoY) basis, it's the total income has increased by
a whopping 225%.
Net profit for the quarter ended 30 June 2022 stood at Rs 6.3 bn. This is 35%
higher compared to March 2022's net profit of Rs 4.7 bn, and 67% higher when
compared on a YoY basis.
The stellar performance was on account of its integrated resources (IRM) and
airport business reporting strong numbers after full consolidation.
3) Domino Effect
The Adani group is well known for expanding into a variety of industries. Adani
Group has covered most of the high-growth industries, including sports, cement,
power, and green hydrogen.
Adani Enterprises, the group's flagship business, serves as the locomotive of the
train that stops at different sectors. The Adani group's incubator, Adani
Enterprises, assists it in entering a variety of businesses.
Therefore, the success of the Adani group is indirectly dependent upon the gains
of other group companies. Adani Enterprises would prosper as a result of a
domino effect when other companies in the group prospered.
This is what Gautam Adani said when Adani Enterprises reported its Q1 results:
“Adani Enterprises' high growth lays the foundation for us to accelerate the
continued development of new businesses like data centers, airport ecosystems,
road and water infrastructure, defense and aerospace, and digital technology
services.
Through our partnership with TotalEnergies in ANIL, we have also begun our
journey to become the world's largest player in green hydrogen.”
Currently, it is benefiting from the decline in coal prices. In the previous month,
the cost of coal decreased by 9.3%. On the margin of the Adani group's power
and distribution division, this will be a relief. Adani Enterprises' profit margins
will ultimately benefit.
Similar to this, numerous other Adani group businesses are currently profitable,
benefiting the share price of Adani Enterprises.
4) Insider trading
The promoter's ownership demonstrates his or her confidence in the business.
Therefore, if promoters are purchasing company stock, they either believe the
shares are undervalued or that a significant event is about to occur.
Consequently, investors have more faith in a company when promoters buy
shares in it. The promoters of Adani Enterprises purchased 500,000 shares of that
company on September 13, 2022, for a total of Rs 1.8 billion.
Shares of Adani Transmission are up 121% so far in 2022. On a YoY basis, the
share price has rallied 166%. The stock is up 25% in the last month alone due to
aggressive buying by investors across the board. Today, it reached a new 52-week
high of Rs 3,873.
The rally in Adani group stocks is massive and it looks like there is nothing that
would stop the growth of this behemoth conglomerate. However, one should be
very careful. Adani group is loaded with heavy debt. Even one default by any
company will send all the group companies tumbling down on the bourses.
(EQUITYMASTER, 2022)
PESTEL Analysis of Adani Group
PESTEL Analysis is a strategic management tool that Adani Enterprises’ strategy
makers can use to make better decisions. PESTEL stands for – Political, Social,
Economic, Technological, Environmental, and Legal factors that impact the
macro environment of the company in which it operates.
The PESTLE analysis for Adani Group is presented below in a table followed by
the detailed analysis report.

Political
 Adani Group's close ties with the ruling party at the Centre attract investors

Economical
 Amendment in Electricity Act to offer growth opportunities in the
distribution
 India's GDP is forecasted to decline post-pandemic
 Severe coal shortage in India due to supply shock and rainfall in coal-
bearing areas

Social
 Number of airline passengers plummeted by 25% after the rapid Omicron
spread

Technological
 Increasing demand for data storage and developments in data center
technologies
 Research and development in the mining industry may reduce financial risk
and help identify reusable waste deposits
Environmental
 Government of India issues Environment (Protection) Amendment Rules-
The Environment (Protection) Fourth Amendment Rules, 2021 were
announced by the Ministry of Environment, Forest, and Climate Change.
The date of these regulations' enforcement is July 1, 2022. The amendment
introduces new requirements for effluent discharge and modifies the
Environment (Protection) Rules, 1986. All disposal methods shall be
subject to the established standards. Depending on the caliber of the
recipient system, the Central Pollution Control Board (CPCB) or State
Pollution Control Boards / Pollution Control Committees (SPCBs) can
specify stricter standards in cases of direct disposal In the event of marine
disposal via an appropriate marine outfall, these standards shall not be
applicable.

Legal
 DRI pleas to CESAT to hear the cases against Adani Group firms on a
case-to-case basis
 Australian Court orders Adani Group to pay $106 million to four coal
companies (swotandpestle, 2022)
Which business sector did they focus on most and
helped them to rise to the top?
Mr. Adani's focus on sectors that are central to the Indian government's economic
growth ambitions put him in a strong position to see a continued rise in his
fortunes, analysts say. Mr] Adani has made many smart moves to expand in many
critical sectors and has been a beneficiary of government contracts in many
industries where the government wants India to become self-reliant,” said Sonam
Srivastava, founder at Wright Research, an investment advisory based in
Mumbai.

Mr. Adani, 60, chairman of conglomerate Adani Group, is worth $143 billion,
making him the third-richest person in the world, according to the Bloomberg
Billionaires Index, beaten only by Elon Musk ($262bn) and Jeff Bezos ($157bn).
This represents a remarkable increase in the industrialist's wealth compared with
only two years ago when his fortune stood at $8.9bn. It comes during a period of
enormous volatility, which eroded the wealth of many.

A first-generation entrepreneur from Ahmedabad in the western Indian state of

Gujarat, Mr. Adani started his group in 1988 as a commodity trading business.
He then expanded into energy, utilities, and infrastructure, with a focus on coal
and ports.

In recent years, he has continued to expand these businesses and moved into
sectors including airports, media, health care, and digital services. These come
with risks, and analysts while also presenting major growth opportunities.
(NBusiness, 2022)
Which business environment did they focus on most
and helped them to rise to the top?
According to market watchers, a favorable business environment worked for
Adani’s group of firms, which are 100 percent India-centric. Amid the ongoing
momentum, shares of Adani Total Gas jumped 1,618 percent in the past two
years. It was followed by Adani Transmission (up 1,438 percent) and Adani
Enterprises (up 1,197 percent).

Other Adani Group firms, including Adani Power, Adani Green Energy, and
Adani Ports and Special Economic Zone also rallied 953 percent, 246 percent,
and 167 per cent during the same period. Adani Wilmar, which was listed on
bourses in February 2022, is also up over 100 percent from the issue price of Rs
230.
Kranthi Bathini, Equity Strategist, WealthMills Securities said, “Macroeconomic
environment for the businesses in which Adani group of firms are quite positive
in the country. In addition to this, the group is also coming up with expansion
plans, and the ways they are leveraging the business are helping them to emerge
as the largest business model.”
On the other hand, the sky-high valuations of the Adani Group of firms are one
of the major concerns among investors. Price-to-earnings (P/E) of Adani Total
Gas was hovering around 786.86 on September 15. The ratio for other group firms
such as Adani Enterprises and Adani Wilmar were at 471.29 times and 117.49
times. (OberoiRahul, 2022)
Conclusion
Stock exchange function Providing Liquidity and Marketability to Existing
Securities, Safety of Transactions, and Helps in Raising New Capital The
economy is very dependent on stock exchanges. It facilitates the growth of
businesses, helps to raise capital for investment, and makes profit sharing
possible. It helps develop small investor investment opportunities and raise
money for government-funded development projects. It serves as an economic
barometer. As you can see from the above research Adani enterprise has greatly
benefited by selling their shares
Bibliography
 EQUITYMASTER. (2022). Why Adani Enterprises Share Price is Rising.
www.equitymaster.com.

 Groww. (n.d.). Bombay Stock Exchsnge. https://groww.in/.

 Groww. (n.d.). National Stock Exchange. https://groww.in/.

 moneycontrol. (2022). Adani Enterprises Ltd. https://www.moneycontrol.com/.

 NBusiness. (2022). How India's Gautam Adani became the world's third-richest person.
thenationalnews.

 Oberoi, R. (2022). Gautam Adani-led Adani Group pips Tata Group to become most valuable
in terms of market value. https://www.businesstoday.in/.

 swotandpestle. (2022). Adani Group swot & Pestel Analysis.

https://www.swotandpestle.com/.