⚠ 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.
ADANIGREEN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.6
| Stock Code | ADANIGREEN | Market Cap | 1,53,558 Cr. | Current Price | 932 ₹ | High / Low | 1,179 ₹ |
| Stock P/E | 208 | Book Value | 89.8 ₹ | Dividend Yield | 0.00 % | ROCE | 8.87 % |
| ROE | 9.41 % | Face Value | 10.0 ₹ | DMA 50 | 952 ₹ | DMA 200 | 1,026 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 1.33 % | PAT Qtr | 82.0 Cr. | PAT Prev Qtr | 475 Cr. |
| RSI | 39.5 | MACD | -47.8 | Volume | 41,47,657 | Avg Vol 1Wk | 47,81,579 |
| Low price | 758 ₹ | High price | 1,179 ₹ | PEG Ratio | 1.86 | Debt to equity | 1.18 |
| 52w Index | 41.4 % | Qtr Profit Var | -85.3 % | EPS | 4.11 ₹ | Industry PE | 25.4 |
📊 Core Financials
- Revenue & Profitability: PAT dropped sharply from 475 Cr. to 82 Cr. (–85.3% variance), showing severe earnings volatility.
- Margins: ROE at 9.41% and ROCE at 8.87% are weak, reflecting poor efficiency.
- Debt: Debt-to-equity ratio of 1.18 indicates high leverage, adding financial risk.
- Cash Flow: Profitability is inconsistent, raising concerns about sustainability.
💹 Valuation Indicators
- P/E Ratio: 208 vs. industry average of 25.4 — extremely overvalued.
- P/B Ratio: Current price (₹932) vs. book value (₹89.8) → ~10.4x, premium valuation.
- PEG Ratio: 1.86, suggesting growth is priced at a premium.
- Intrinsic Value: Valuation appears stretched given weak profitability and high debt.
🏢 Business Model & Competitive Advantage
- Adani Green Energy operates in renewable energy, focusing on solar and wind power projects.
- Competitive advantage lies in scale, government contracts, and strategic positioning in India’s renewable energy push.
📈 Technicals & Entry Zone
- DMA 50 (₹952) and DMA 200 (₹1,026) are above current price, showing weakness.
- RSI at 39.5 indicates oversold territory; MACD negative suggests bearish sentiment.
- Entry Zone: Attractive only on dips near ₹850–900 for long-term investors.
- Long-Term Holding: Risky at current valuations; suitable only if earnings stabilize and debt is reduced.
✅ Positive
- Strong positioning in renewable energy sector with government support.
- FII holdings increased (+0.13%) and DII holdings increased (+1.33%), showing institutional confidence.
- Large market capitalization (₹1,53,558 Cr.) ensures stability.
⚠️ Limitation
- Extremely high P/E ratio (208) compared to industry average (25.4).
- Weak ROE (9.41%) and ROCE (8.87%).
- Dividend yield of 0.00% offers no immediate shareholder return.
📉 Company Negative News
- Quarterly profit variance –85.3%, showing severe earnings decline.
- MACD negative (–47.8), indicating bearish momentum.
📈 Company Positive News
- Institutional support increased with both FII and DII holdings rising.
- Strong demand outlook for renewable energy projects in India.
🏭 Industry
- Renewable energy sector benefits from government initiatives and global clean energy push.
- Industry average P/E (25.4) highlights Adani Green’s extreme overvaluation.
🔎 Conclusion
- Adani Green Energy shows strong sector positioning but faces severe earnings volatility and stretched valuations.
- High debt and weak return ratios make current levels risky.
- Recommendation: Avoid fresh entry at current price; accumulate only on dips near ₹850–900. Long-term holding viable only if profitability stabilizes and ROE/ROCE improve.