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Valuation of Adani to Shoot Up with Australian Coal Proceeding; Wait! Is it for a Long Run?

News

The Australian government on Thursday reissued an environmental permit for construction of one of the world's biggest coal mines to India's Adani Enterprises, after clearing concerns about two rare outback species.
Source: Money Control

SNP Insights

Winning the permit to proceed with the construction of USD 7 Billion coal mines in Australia by Adani Enterprises would surely be benefiting the company in term of valuation of the company. However, six to seven years down the line where CIL is planning to reach its production capacity to 1BT with falling demand as well as price in international market may red the balance sheet of the enterprise by non-recovery of fixed cost.
Source: SNP Infra Research