ADANIGREEN - Fundamental Analysis: Financial Health & Valuation

📊 Financial Overview: Adani Green Energy (ADANIGREEN) shows moderate financial strength. It has a ROE of 9.41% and ROCE of 8.87%, which are below ideal levels for capital efficiency. The debt-to-equity ratio of 1.18 reflects a leveraged structure typical of infrastructure-heavy businesses. EPS stands at ₹7.18, and the quarterly PAT surged 309% to ₹475 Cr, indicating strong earnings momentum. The stock trades above both DMA 50 and DMA 200, suggesting bullish technical sentiment.

💰 Valuation Metrics: The stock trades at a P/E of 152, significantly above the industry average of 30.9, indicating overvaluation. The P/B ratio is ~12.5 (₹1,137 / ₹91.2), and the PEG ratio of 1.36 suggests that growth does not fully justify the premium. Dividend yield is 0%, reflecting reinvestment into expansion.

🏢 Business Model & Competitive Edge: ADANIGREEN is a leading renewable energy player focused on solar and wind power generation. It benefits from long-term PPAs, scale in capacity, and strategic alignment with India’s clean energy goals. The company’s aggressive expansion and operational efficiency offer long-term potential, though debt levels and valuation remain concerns.

📉 Entry Zone: A more attractive entry zone lies between ₹950–₹1,000, closer to the 200 DMA and below recent highs, offering better valuation comfort.

📈 Long-Term Holding Guidance: Suitable for long-term investors with high risk tolerance seeking exposure to India’s renewable energy transition. Accumulate on dips and monitor debt levels, regulatory changes, and execution timelines.