⚠ 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 | 1,24,518 Cr. | Current Price | 1,037 ₹ | High / Low | 1,068 ₹ |
| Stock P/E | 219 | Book Value | 167 ₹ | Dividend Yield | 0.00 % | ROCE | 5.13 % |
| ROE | 3.81 % | Face Value | 10.0 ₹ | DMA 50 | 987 ₹ | DMA 200 | 939 ₹ |
| Chg in FII Hold | 0.41 % | Chg in DII Hold | 0.17 % | PAT Qtr | 114 Cr. | PAT Prev Qtr | 101 Cr. |
| RSI | 58.3 | MACD | 6.81 | Volume | 17,54,439 | Avg Vol 1Wk | 17,12,191 |
| Low price | 745 ₹ | High price | 1,068 ₹ | PEG Ratio | 1.78 | Debt to equity | 0.52 |
| 52w Index | 90.4 % | Qtr Profit Var | -30.3 % | EPS | 4.74 ₹ | Industry PE | 55.4 |
📊 Core Financials
- Profitability: PAT rose from ₹101 Cr. to ₹114 Cr., but Qtr Profit Var shows -30.3% decline YoY
- Margins: ROE at 3.81% and ROCE at 5.13% indicate weak efficiency
- Debt: Debt-to-equity ratio at 0.52 shows moderate leverage
- Cash Flow: EPS at ₹4.74 is very low relative to market cap
💰 Valuation Indicators
- P/E Ratio: 219 vs Industry PE of 55.4 → extremely overvalued
- P/B Ratio: Current Price ₹1,037 vs Book Value ₹167 → ~6.2x book
- PEG Ratio: 1.78 → growth priced at a premium
- Intrinsic Value: Current valuation far exceeds fundamentals
🏢 Business Model & Health
- Market Cap: ₹1,24,518 Cr. reflects large presence in renewable energy
- Dividend Yield: 0.00% indicates reinvestment focus
- Competitive Advantage: Positioned in solar and renewable energy, a growing sector
- Overall Health: Weak profitability and stretched valuations despite sector potential
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near ₹750–850 if fundamentals improve
- Long-Term Holding: Risky at current valuations; suitable only if earnings scale up significantly
✅ Positive
- Presence in renewable energy sector with long-term demand potential
- Sequential PAT growth from ₹101 Cr. to ₹114 Cr.
- FII holding increased (+0.41%) and DII holding increased (+0.17%)
⚠️ Limitation
- Extremely high P/E ratio (219)
- Weak ROE (3.81%) and ROCE (5.13%)
- EPS at ₹4.74 is very low
📉 Company Negative News
- Quarterly profit variation shows decline (-30.3%)
- Valuations far above industry peers
📈 Company Positive News
- Sequential PAT improved to ₹114 Cr.
- Institutional interest rising with FII and DII increases
🏭 Industry
- Industry PE: 55.4, far below ADANIENSOL’s PE
- Renewable energy sector has strong long-term demand drivers
🔎 Conclusion
ADANIENSOL operates in a promising renewable energy sector but currently suffers from weak profitability and extremely stretched valuations.
While institutional interest and sector growth are positives, the stock is risky for long-term holding unless earnings improve significantly.
Entry should be considered only at lower levels closer to intrinsic value, ideally around ₹750–850, if profitability strengthens.