⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
ADANIENSOL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.7
| Stock Code | ADANIENSOL | Market Cap | 1,17,077 Cr. | Current Price | 975 ₹ | High / Low | 1,068 ₹ |
| Stock P/E | 206 | Book Value | 167 ₹ | Dividend Yield | 0.00 % | ROCE | 5.13 % |
| ROE | 3.81 % | Face Value | 10.0 ₹ | DMA 50 | 944 ₹ | DMA 200 | 915 ₹ |
| Chg in FII Hold | 0.41 % | Chg in DII Hold | 0.17 % | PAT Qtr | 114 Cr. | PAT Prev Qtr | 101 Cr. |
| RSI | 43.9 | MACD | -31.6 | Volume | 15,97,540 | Avg Vol 1Wk | 15,83,260 |
| Low price | 639 ₹ | High price | 1,068 ₹ | PEG Ratio | 1.68 | Debt to equity | 0.52 |
| 52w Index | 78.3 % | Qtr Profit Var | -30.3 % | EPS | 4.74 ₹ | Industry PE | 47.3 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 101 Cr. to 114 Cr., but quarterly profit variance is –30.3%, showing inconsistency.
- Margins: ROE at 3.81% and ROCE at 5.13% are weak, reflecting poor efficiency.
- Debt: Debt-to-equity ratio of 0.52 indicates moderate leverage.
- Cash Flow: Profitability is modest, but weak return ratios raise sustainability concerns.
💹 Valuation Indicators
- P/E Ratio: 206 vs. industry average of 47.3 — extremely overvalued.
- P/B Ratio: Current price (₹975) vs. book value (₹167) → ~5.8x, premium valuation.
- PEG Ratio: 1.68, suggesting growth is priced at a premium.
- Intrinsic Value: Valuation appears stretched given weak efficiency metrics.
🏢 Business Model & Competitive Advantage
- Adani Energy Solutions operates in power transmission and distribution, focusing on infrastructure and renewable energy integration.
- Competitive advantage lies in scale, government contracts, and strategic positioning in India’s energy sector.
📈 Technicals & Entry Zone
- DMA 50 (₹944) and DMA 200 (₹915) are below current price, showing mild support.
- RSI at 43.9 indicates neutral-to-oversold momentum; MACD negative suggests bearish sentiment.
- Entry Zone: Attractive only on dips near ₹900–940 for long-term investors.
- Long-Term Holding: Risky at current valuations; suitable only if profitability improves significantly.
✅ Positive
- Moderate debt-to-equity ratio (0.52).
- FII holdings increased (+0.41%), showing foreign investor confidence.
- Strong positioning in India’s energy infrastructure sector.
⚠️ Limitation
- Extremely high P/E ratio (206) compared to industry average (47.3).
- Weak ROE (3.81%) and ROCE (5.13%).
- Dividend yield of 0.00% offers no immediate shareholder return.
📉 Company Negative News
- Quarterly profit variance –30.3%, showing earnings volatility.
- MACD negative (–31.6), indicating bearish momentum.
📈 Company Positive News
- Quarterly PAT improved to 114 Cr., reflecting operational strength despite volatility.
- FII holdings increased (+0.41%), showing foreign investor support.
🏭 Industry
- Power transmission and renewable energy sector benefits from government infrastructure push.
- Industry average P/E (47.3) highlights Adani Energy Solutions’ extreme overvaluation.
🔎 Conclusion
- Adani Energy Solutions shows modest profitability