ABREL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 1.5

Let’s unpack Aditya Birla Renewables Ltd. (ABREL) — a clean energy aspirant caught in a sharp downcycle, struggling to convert promise into performance.

⚙️ Core Financials Snapshot

Profitability & Returns

ROE: -2.36%, ROCE: -0.16% — negative, indicating inefficient capital deployment and eroded shareholder value.

EPS: -₹17.4 — steep losses suggest major operational or scale-related challenges.

Qtr PAT: -₹44.5 Cr (worse than previous -₹16.8 Cr) — concerning spike in losses.

Qtr Profit Var: -1,096% — dramatic deterioration reflecting instability in revenue or cost structures.

Leverage Position

Debt-to-Equity: 1.30 — moderately high; debt reliance could be risky if cash flows remain weak.

Dividend Yield: 0.10% — negligible, reinvestment mode likely but lacks return potential for income-focused investors.

📊 Valuation Overview

Metric Value Implication

P/E Ratio ❌ N/A Inapplicable due to negative earnings

P/B Ratio ~5.65 Suggests overvaluation relative to book assets

PEG Ratio ❌ N/A Not meaningful without positive earnings

Intrinsic Value Below CMP Lacks earnings support to justify current pricing

🌞 Business Model & Strategic Landscape

Focused on solar and wind energy — part of India’s energy transition.

Operates in a sector with strong structural tailwinds, but execution lags.

Burn rate and scalability remain issues — a common challenge in infra-heavy renewables.

Institutional Sentiment

FII Hold ↓ -0.17%

DII Hold ↑ +0.88% — cautious optimism from domestic players, possibly banking on long-term revival.

📉 Technical Indicators

RSI: 24.2 — deeply oversold, stock likely nearing support zone.

MACD: -85.2 — strong bearish momentum.

Trading below both DMA 50 & DMA 200, confirming sustained weakness.

52W Range: ₹1,638–₹3,142, CMP near 52W low — signals potential bottoming but caution required.

📍 Entry Zone & Investment Outlook

Suggested Entry Zone: ₹1,800–₹1,930 — near recent lows, suitable only for speculative entries.

Holding Strategy

Not recommended for conservative investors.

Viable only if one believes in India’s renewable energy policy tailwinds and ABREL’s execution turnaround.

Key flags: Watch for debt restructuring, revenue stability, and project pipeline clarity.

If you're eyeing the renewables space seriously, a comparison with names like Tata Power Renewable, ReNew Power, or JSW Energy might help triangulate better opportunities ⚡📊. Want me to set that up?

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