ADANIGREEN - Fundamental Analysis

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

Fundamental Rating: 3.3

Let’s switch on the analysis of Adani Green Energy Ltd. (ADANIGREEN) — India’s renewable powerhouse with promising growth energy and complex financial voltage ⚡.

🧮 Financial Pulse Check

Profitability

ROE: 14.6% and ROCE: 8.70% — decent but not stellar, especially for its lofty valuation.

EPS: ₹10.7 looks modest relative to current market price and valuation.

PAT surge: ₹724 Cr vs ₹301 Cr — good operational growth; Qtr Profit Var: +54.1% indicates forward momentum.

Debt Load

Debt-to-equity: 6.59 — 🚨 very high; reflects aggressive expansion. Watch interest cost and refinancing pressure.

Dividend Yield: 0.00% — growth-oriented, not income-generating.

📊 Valuation Lens

Metric Value Commentary

P/E Ratio 89.5 🚩 Extremely high vs Industry PE: 41.2 — implies speculative growth pricing

P/B Ratio ~13.26 Book Value ₹76.6 — priced at a steep premium

PEG Ratio 1.59 Growth isn’t cheap — mildly overvalued

Intrinsic Value ❌ Below CMP Suggests price is inflated vs fundamentals

🌱 Business Model & Edge

Dominates in utility-scale solar & wind — under India’s green energy mission.

Long-term PPAs provide revenue visibility, but execution risk remains on upcoming capacity.

Group synergies in infrastructure and financing are beneficial, yet the debt levels overshadow the comfort zone.

FII Holding ↓ -0.87% — foreign sentiment cautious; DII Holding ↑ +0.46% — domestic optimism remains steady.

📉 Technical Tuning

RSI: 51.5 — neutral; no strong buy or sell indication.

MACD: 3.88 — slight bullish signal, trend recovery possible.

DMA 50 (₹1,000) crossed, but still below DMA 200 (₹1,113) — recovery underway, needs confirmation.

52W Range ₹758–₹2,092, price at ~50% retracement — potentially forming a base.

🎯 Entry Zone & Strategy

Entry Zone: ₹940–₹985 — sensible for long-term believers seeking to ride India's clean energy wave.

For long-term holders, track

Capacity additions vs targets

Interest coverage ratios

Regulatory & policy alignment (solar tariffs, grid access)

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