⚠ 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 | 1,46,680 Cr. | Current Price | 891 ₹ | High / Low | 1,179 ₹ |
| Stock P/E | 199 | Book Value | 89.8 ₹ | Dividend Yield | 0.00 % | ROCE | 8.87 % |
| ROE | 9.41 % | Face Value | 10.0 ₹ | DMA 50 | 928 ₹ | DMA 200 | 1,000 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | 1.33 % | PAT Qtr | 82.0 Cr. | PAT Prev Qtr | 475 Cr. |
| RSI | 46.4 | MACD | -22.0 | Volume | 25,65,619 | Avg Vol 1Wk | 43,65,314 |
| Low price | 765 ₹ | High price | 1,179 ₹ | PEG Ratio | 1.78 | Debt to equity | 1.18 |
| 52w Index | 30.4 % | Qtr Profit Var | -85.3 % | EPS | 4.11 ₹ | Industry PE | 30.0 |
📊 Core Financials
- Profitability: PAT dropped sharply from ₹475 Cr. to ₹82 Cr. (Qtr Profit Var: -85.3%)
- Margins: ROE at 9.41% and ROCE at 8.87% indicate weak efficiency
- Debt: Debt-to-equity ratio at 1.18 shows moderate leverage
- Cash Flow: EPS at ₹4.11 is very low relative to market cap
💰 Valuation Indicators
- P/E Ratio: 199 vs Industry PE of 30.0 → extremely overvalued
- P/B Ratio: Current Price ₹891 vs Book Value ₹89.8 → ~9.9x book
- PEG Ratio: 1.78 → growth priced at a premium
- Intrinsic Value: Valuation far exceeds fundamentals
🏢 Business Model & Health
- Market Cap: ₹1,46,680 Cr. reflects large presence in renewable energy
- Dividend Yield: 0.00% indicates reinvestment focus
- Competitive Advantage: Positioned in solar and renewable energy, a sector with strong demand drivers
- Overall Health: Weak profitability and stretched valuations despite sector potential
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive only near ₹700–800 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
- DII holding increased (+1.33%)
- FII holding increased (+0.13%)
⚠️ Limitation
- Extremely high P/E ratio (199)
- Weak ROE (9.41%) and ROCE (8.87%)
- EPS at ₹4.11 is very low
📉 Company Negative News
- Quarterly profit variation shows steep decline (-85.3%)
- Stock trading below DMA levels (50DMA ₹928, 200DMA ₹1,000)
📈 Company Positive News
- Institutional interest rising with FII and DII increases
- Strong positioning in renewable energy sector
🏭 Industry
- Industry PE: 30.0, far below ADANIGREEN’s PE
- Renewable energy sector benefits from government push and global demand
🔎 Conclusion
ADANIGREEN 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 ₹700–800, if profitability strengthens.