ABREL - Investment Analysis

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

Investment Rating: 1.4

📊 Fundamental Analysis Summary

Aditya Birla Renewables Ltd (ABREL) is currently a high-risk and weak candidate for long-term investment. Despite operating in the promising renewable energy sector, its financial metrics reflect deep losses, poor capital efficiency, and declining investor sentiment.

Metric Value Interpretation

Market Cap ₹21,808 Cr Mid-cap — moderate stability

Stock P/E Not available Negative EPS — company is loss-making

PEG Ratio Not available No valuation basis due to lack of earnings

ROE / ROCE -2.36% / -0.16% Negative returns — poor capital efficiency

Dividend Yield 0.10% Negligible — not suitable for income investors

Debt-to-Equity 1.30 High leverage — risk in capital-intensive sector

EPS ₹-17.4 Deep losses — unsustainable in long term

Book Value ₹344 Price-to-book ~5.6× — expensive given negative earnings

PAT Growth (QoQ) -1,096% Massive deterioration — red flag

RSI / MACD 24.2 / -85.2 RSI extremely oversold; MACD strongly negative — bearish sentiment

FII/DII Holding Change -0.17% / +0.88% Mild DII interest; FII cautious

52W Price Range ₹1,638 – ₹3,142 Near 52-week low — technical support possible

📉 Valuation & Entry Price Zone

With no earnings and negative ROE/ROCE, valuation metrics are unreliable. However, technical indicators suggest oversold conditions.

Ideal Entry Zone: ₹1,650 – ₹1,750

Only suitable for speculative investors betting on sectoral tailwinds and turnaround.

Wait for signs of PAT stabilization and debt reduction before entering.

🧭 If You Already Hold the Stock

Holding Strategy

Time Horizon: Short-term (3–6 months) unless financials improve.

Exit Strategy: Consider exiting if price rebounds to ₹2,200–₹2,400 without PAT recovery or ROCE improvement.

Monitor: Debt levels, PAT trend, and institutional activity.

Key Triggers to Watch

PAT turning positive or narrowing losses

ROCE improving to at least 5%

Debt-to-equity falling below 1.0

🧠 Final Thoughts

ABREL is not a viable long-term investment at this stage. It may appeal to high-risk investors who believe in the renewable energy story and expect a turnaround, but the current financials and sentiment are unfavorable.

Would you like to explore more stable renewable energy players like Tata Power Renewable or ReNew Energy Global that offer better financial visibility and growth metrics?

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