ABREL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.6
| Stock Code | ABREL | Market Cap | 16,600 Cr. | Current Price | 1,486 ₹ | High / Low | 2,538 ₹ |
| Stock P/E | 111 | Book Value | 401 ₹ | Dividend Yield | 0.13 % | ROCE | 4.25 % |
| ROE | 3.84 % | Face Value | 10.0 ₹ | DMA 50 | 1,345 ₹ | DMA 200 | 1,584 ₹ |
| Chg in FII Hold | 0.08 % | Chg in DII Hold | -0.50 % | PAT Qtr | 31.4 Cr. | PAT Prev Qtr | 24.0 Cr. |
| RSI | 65.2 | MACD | 71.2 | Volume | 2,54,235 | Avg Vol 1Wk | 2,50,628 |
| Low price | 1,080 ₹ | High price | 2,538 ₹ | PEG Ratio | -16.8 | Debt to equity | 0.89 |
| 52w Index | 27.9 % | Qtr Profit Var | 25.1 % | EPS | 8.04 ₹ | Industry PE | 27.0 |
📈 Positive
- Market capitalization of ₹16,600 Cr. provides scale in renewable energy.
- EPS of ₹8.04 supports earnings visibility.
- Quarterly PAT improved (₹31.4 Cr. vs ₹24.0 Cr.), showing growth (+25.1%).
- FII holdings increased slightly (+0.08%), reflecting marginal foreign confidence.
- Stock trading above DMA 50 (₹1,345), confirming short-term strength.
- MACD positive (71.2), reinforcing bullish momentum.
⚠️ Limitation
- Very high P/E of 111 vs industry average of 27.0, indicating severe overvaluation.
- Weak ROCE (4.25%) and ROE (3.84%) highlight poor efficiency.
- Negative PEG ratio (-16.8) signals unsustainable valuation relative to growth.
- Dividend yield of 0.13% offers negligible income support.
- RSI at 65.2 indicates nearing overbought territory.
- Debt-to-equity ratio of 0.89 adds leverage risk.
- Price trading below DMA 200 (₹1,584), showing weak long-term trend.
🚨 Company Negative News
- DII holdings declined (-0.50%), showing reduced domestic institutional support.
- Valuation concerns due to stretched multiples.
- Volume only marginally above weekly average, suggesting weaker participation.
🌟 Company Positive News
- Quarterly profit growth (+25.1%) boosts sentiment.
- FII holdings increased slightly, showing marginal foreign confidence.
- Stock trading at 27.9% of 52-week range, showing recovery potential.
🏭 Industry
- Industry P/E of 27.0 highlights ABREL’s extreme valuation premium.
- Renewable energy sector outlook remains positive, supported by policy initiatives and demand growth.
- Sector requires consistent profitability to justify high valuations.
📝 Conclusion
ABREL is momentum-driven but fundamentally weak, with stretched valuations, low efficiency, and negligible dividend support.
🔑 **Entry Zone:** ₹1,350–₹1,380, closer to DMA support and valuation comfort.
📌 **Long-term Holding Guidance:** Suitable only for short-to-medium term; long-term suitability is weak unless ROE/ROCE improve significantly. Risk remains high due to stretched valuations and overbought RSI; maintain strict stop-loss around ₹1,320.
This positions ABREL as a tactical trading candidate rather than a strong long-term investment. Would you like me to extend this into a peer benchmarking overlay (ABREL vs Adani Green and Tata Power) to highlight relative valuation and efficiency gaps?