Risk factor
High price volatility
Profitability factor
Solid dividends
About
Operating throughout Indonesia, PT Adaro Energy Indonesia Tbk and its subsidiaries serve as a multifaceted energy conglomerate. Their operations encompass coal, electricity generation, utilities, and critical infrastructure development. The company structures its business across several core divisions: Coal Mining and Trading, Mining Services, Logistics, and other related activities. Adaro Energy's comprehensive service offerings include coal extraction and commercialization, contract mining, quarrying, vessel loading, various mining support services, transportation solutions, coal handling and river barging, terminal management, seaport operations, agricultural endeavors, power plant development, general trading, warehousing and logistics support, and water and mud treatment. Additionally, the company is involved in the construction, repair, and installation of industrial machinery, as well as the manufacturing, maintenance, and refurbishment of marine transport equipment. A key initiative also focuses on transforming mine water into potable water. The company exports its products to international markets, with significant destinations including China, Malaysia, Japan, India, and Korea. Established in 2004, the firm, headquartered in Jakarta, Indonesia, was formerly known as PT Adaro Energy before officially changing its name to PT Adaro Energy Indonesia Tbk in March 2022.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBIT
Target Price
The average target price of ADRO.JK is 2994 and suggests 17.9% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to i