ADANIGREEN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.5
| Stock Code | ADANIGREEN | Market Cap | 2,02,133 Cr. | Current Price | 1,227 ₹ | High / Low | 1,272 ₹ |
| Stock P/E | 251 | Book Value | 90.4 ₹ | Dividend Yield | 0.00 % | ROCE | 5.94 % |
| ROE | 6.98 % | Face Value | 10.0 ₹ | DMA 50 | 1,029 ₹ | DMA 200 | 1,011 ₹ |
| Chg in FII Hold | -0.32 % | Chg in DII Hold | 0.25 % | PAT Qtr | 178 Cr. | PAT Prev Qtr | 82.0 Cr. |
| RSI | 76.2 | MACD | 86.7 | Volume | 33,52,380 | Avg Vol 1Wk | 47,20,873 |
| Low price | 765 ₹ | High price | 1,272 ₹ | PEG Ratio | 3.48 | Debt to equity | 1.51 |
| 52w Index | 91.2 % | Qtr Profit Var | 58.1 % | EPS | 3.67 ₹ | Industry PE | 31.0 |
📈 Positive
- Large market capitalization of ₹2,02,133 Cr. ensures scale and liquidity in renewable energy.
- PAT improved (₹178 Cr. vs ₹82 Cr.), showing strong quarterly growth (+58.1%).
- DII holdings increased (+0.25%), reflecting domestic institutional support.
- Stock trading above DMA 50 (₹1,029) and DMA 200 (₹1,011), confirming bullish trend.
- MACD positive (86.7), reinforcing momentum.
⚠️ Limitation
- Extremely high P/E of 251 vs industry average of 31.0, indicating severe overvaluation.
- Weak ROCE (5.94%) and ROE (6.98%) highlight poor efficiency.
- PEG ratio of 3.48 shows growth priced expensively.
- EPS of ₹3.67 is very low relative to price.
- Dividend yield of 0.00% offers no income support.
- Debt-to-equity ratio of 1.51 reflects high leverage.
- RSI at 76.2 indicates overbought conditions.
🚨 Company Negative News
- FII holdings declined (-0.32%), showing reduced foreign investor confidence.
- Valuation multiples remain stretched compared to peers.
- Volume below 1-week average, suggesting weakening participation.
🌟 Company Positive News
- PAT growth (+58.1%) shows strong earnings momentum.
- Stock trading at 91% of 52-week range, showing strong price action.
- Sectoral support from renewable energy demand and government initiatives.
🏭 Industry
- Industry P/E of 31.0 highlights ADANIGREEN’s extreme valuation premium.
- Renewable energy sector outlook remains positive, supported by policy push and demand growth.
- Sector requires consistent profitability to justify high valuations.
📝 Conclusion
ADANIGREEN is momentum-driven but fundamentally weak, with valuations far above industry norms and efficiency metrics lagging.
🔑 **Entry Zone:** ₹1,050–₹1,100, closer to valuation comfort and DMA support levels.
📌 **Long-term Holding Guidance:** Short-to-medium term only; long-term suitability is weak unless ROE/ROCE improve significantly. Risk remains high due to stretched valuations, weak efficiency, high leverage, and overbought RSI; maintain strict stop-loss around ₹1,020.
This frames ADANIGREEN as a momentum-heavy but fundamentally fragile candidate. Would you like me to extend this into a peer benchmarking overlay (ADANIGREEN vs Tata Power Renewables, NTPC Green, and Adani Energy Solutions) to highlight relative valuation and efficiency gaps?