Edelweiss Securities has maintained 'Buy' on Adani  Enterprises  (AEL) with target price of Rs 669 as against the current market price of Rs 722 in its report.

Commenting on the investment rationale, the broking firm said, "AEL's  Q4FY15  adjusted  consolidated  PAT  of  Rs 2.1 billion came  in  lower  than  our  Rs 2.3 billion  estimate.  The  miss  predominantly  was due  to  higher  losses  at  Adani  Power,  even  though  the  10%  coal trading rading volume dip was offset by improved margins.

Management is hopeful that the  group  restructuring  exercise  will  simplify  the   corporate  structure  and enhance  shareholders’  value.  AEL  is  confident  of  long‐term  growth opportunities  in  the  form  of  Mine  Development  Operator  (MDO), pursuant to opening up of domestic coal mining.

A  demerged  AEL  will  largely  be  an  energy  resource  company.  In  the  near  term,  post completion  of  coal  mine  auctions,  we  are  optimistic  on  the  domestic  coal  MDO opportunity  where  the  company  enjoys  an  early‐mover  advantage.  Following  revision in  its  subsidiaries'  valuations,  we  revise  our  SOTP‐based  target  price  to   Rs 669 (excluding  Rs 153  option  value  for  coal  mining  business)  from  Rs 642  earlier.  At  CMP, the stock is trading at 9.9x FY16E and 8.9x FY17E EV/EBITDA. We maintain 'BUY/SP'."

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