ADANIENSOL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 2.8

📊 Adani Energy Solutions shows weak fundamentals with very high P/E (190 vs industry 52), low ROCE (5.13%) and ROE (3.81%), and declining quarterly profits. Technically, the stock is trading above both 50 DMA (964 ₹) and 200 DMA (903 ₹), with RSI at 48.0 indicating neutral momentum and MACD positive. Institutional activity is mixed, with FII holdings decreasing but DII holdings increasing. This makes ADANIENSOL a risky candidate for swing trading, suitable only for short-term opportunities with strict stop-loss discipline.

💡 Optimal Entry Price: Around 960–970 ₹ (near 50 DMA support).

🚪 Exit Strategy: If already holding, consider exiting near 1,030–1,050 ₹ resistance or if price falls below 950 ₹ support.

✅ Positive

• 📈 Price trading above 50 DMA (964 ₹) and 200 DMA (903 ₹), confirming short-term strength.
• 💵 DII holdings increased (+3.08%), showing domestic institutional support.
• 📊 EPS of 5.15 ₹ remains positive despite weak profitability.
• 📈 Strong 52-week performance (83.1%) highlights investor demand.

⚠️ Limitation

• 📉 Extremely high P/E (190) compared to industry average (52), suggesting severe overvaluation.
• 📉 ROCE (5.13%) and ROE (3.81%) are weak, showing poor efficiency.
• 📉 Dividend yield of 0.00% offers no income return.
• 📉 PEG ratio of 1.55 indicates growth is expensive relative to earnings.

🚨 Company Negative News

• 📉 Quarterly profit declined sharply (156 Cr. → 101 Cr.), showing earnings slowdown (-43.6%).
• 📉 FII holdings decreased (-2.79%), reflecting reduced foreign investor confidence.

🌟 Company Positive News

• 📈 DII inflows (+3.08%) add support to stock momentum.
• 📊 EPS remains positive despite profit decline, providing valuation support.
• 📈 Strong 52-week performance shows resilience in investor interest.

🏭 Industry

• 📊 Industry PE is 52.0, far lower than ADANIENSOL’s 190, indicating severe overvaluation.
• 📈 Power and energy sector outlook remains positive, supported by infrastructure growth and renewable energy demand.

📝 Conclusion

⚖️ Adani Energy Solutions is technically stable but fundamentally weak, making it a risky swing trade candidate. Entry near 960–970 ₹ offers a short-term opportunity, with exit near 1,030–1,050 ₹. Strict risk management is essential given stretched valuation, weak profitability, and declining foreign investor confidence.

I can also prepare a peer comparison of Adani Energy Solutions with Tata Power and NTPC to highlight relative swing trade opportunities. Would you like me to do that?