ADANIENSOL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.5

Here’s a detailed analysis of Adani Energy Solutions Ltd (ADANIENSOL)

🧾 Core Financials

Profitability & Growth

Quarterly PAT dropped from ₹198 Cr to ₹156 Cr, but YoY profit variation is up 104%, indicating volatile yet high growth.

EPS: ₹5.81 — modest, especially for a company with a ₹1L Cr market cap.

ROE: 3.81% and ROCE: 5.13% — weak return metrics, suggesting inefficient capital deployment.

Debt & Liquidity

Debt-to-equity: 0.40 — moderate leverage, manageable but needs monitoring.

Dividend Yield: 0.00% — reinvestment-focused, typical for infrastructure growth plays.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 144 42.0 Extremely overvalued

P/B Ratio ~5.1 ~3.5 Premium to book value

PEG Ratio 1.18 ~1 Fairly valued on growth basis

Intrinsic Value ~₹650–₹700 — Overpriced vs fundamentals

The valuation is stretched, with P/E far exceeding industry norms. PEG suggests growth expectations are priced in, but not supported by ROE/ROCE.

🏢 Business Model & Competitive Edge

Core Operations: Power transmission and distribution infrastructure.

Strengths

Strategic role in India’s energy transition and grid modernization.

Backed by Adani Group’s scale and execution capabilities.

Risks

Weak profitability and low return ratios.

FII outflows (-1.73%) may reflect valuation concerns or governance caution.

📉 Technical & Entry Zone

Current Price: ₹838

DMA 50/200: ₹816 / ₹851 — trading near key averages.

RSI: 62.3 — slightly overbought.

MACD: 6.37 — bullish momentum.

Suggested Entry Zone: ₹700–₹750 range, ideally near ₹650 support or intrinsic value.

🕰️ Long-Term Holding Guidance

Hold only if already invested, but monitor earnings quality and return metrics.

Avoid fresh entry unless valuation cools and ROE/ROCE improve.

Ideal for long-term only if

Profitability improves and ROE >10%.

Valuation normalizes below P/E 60 and PEG < 1.

Would you like a peer comparison with Power Grid Corp or Tata Power, or a breakdown of Adani’s transmission pipeline?

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