ADANIENSOL - Fundamental Analysis

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

Fundamental Rating: 3.1

Let’s light up the fundamentals of Adani Energy Solutions Ltd. (ADANIENSOL) — a key player in India’s transmission and distribution sector, navigating a mix of high potential and valuation pressure.

🔍 Core Financials Breakdown

Profitability

ROE: 12.8% and ROCE: 10.2% — moderate, not standout.

EPS: ₹20.0 — acceptable but does not fully justify current valuations.

PAT dipped from ₹647 Cr to ₹512 Cr, although Qtr Profit Var: +317%, likely from prior low base.

Debt Position

Debt-to-equity: 1.83 — fairly high. Common in infra-focused utilities but worth monitoring.

Dividend Yield: 0.00% — retains earnings for reinvestment, but no passive income for shareholders.

💰 Valuation Signals

Metric Value Implication

P/E Ratio 41.4 Fully valued, matching Industry PE

P/B Ratio ~4.5 With Book Value ₹184 — suggests premium for intangible assets

PEG Ratio 1.82 ⚠️ Overvalued based on earnings growth

Intrinsic Value ❌ Below CMP Signals caution before entry

🔌 Business Model & Edge

Operates in power transmission and distribution — backbone of infrastructure growth.

Enjoys near-monopoly presence in several geographies; strategic Adani group synergy in energy and logistics.

DII Holding ↑ +0.56% — domestic confidence; FII Holding ↓ -1.73% — foreign caution likely due to debt concerns.

📉 Technical Landscape

RSI: 34.9 — close to oversold zone, potential for short-term bounce.

MACD: -10.8 — bearish crossover, trend weakness persists.

Price below DMA 50 & 200 — short-term sentiment remains cautious.

52W Range ₹588–₹1,348, current price is in lower third — support zone territory.

🎯 Entry Zone & Holding View

Entry Zone: ₹740–₹790 — if seeking exposure post-correction, may reward contrarian bets.

Long-term outlook hinges on

Policy tailwinds in infrastructure and grid expansion

Execution on capex and operational efficiencies

Managing high leverage and restoring foreign investor trust

Ready to compare it with NTPC or Power Grid for a full-spectrum energy portfolio? I can run a peer matrix to find the right blend of growth, dividend, and balance sheet strength ⚡📊.

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