ADANIGREEN - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.2

📊 Adani Green shows mixed signals for swing trading. Fundamentals are weak with very high P/E (139 vs industry 26.7), modest ROCE (8.87%) and ROE (9.41%), and low EPS (7.13 ₹). However, quarterly PAT surged significantly (+309%), and the stock trades close to both 50 DMA (1,033 ₹) and 200 DMA (1,057 ₹). Technical indicators are soft — RSI at 44.7 suggests weak momentum and MACD is negative. This makes ADANIGREEN a cautious candidate for swing trading, with potential rebound opportunities near support levels.

💡 Optimal Entry Price: Around 1,000–1,020 ₹ (near short-term support).

🚪 Exit Strategy: If already holding, consider exiting near 1,150–1,170 ₹ resistance or if price falls below 980 ₹ support.

✅ Positive

• 📈 Quarterly PAT growth (+309%) highlights strong operational improvement (69 Cr. → 475 Cr.).
• 💵 Strong trading liquidity with volume ~12.5 lakh shares.
• 📊 DII holdings increased slightly (+0.12%), showing domestic institutional support.
• 📈 52-week performance (62.6%) reflects investor demand.

⚠️ Limitation

• 📉 Extremely high P/E (139) compared to industry average (26.7), suggesting severe overvaluation.
• 📉 ROCE (8.87%) and ROE (9.41%) are modest, showing weak efficiency.
• 📉 EPS of 7.13 ₹ is low relative to price.
• 📉 Dividend yield of 0.00% offers no income return.
• 📉 Debt-to-equity ratio of 1.18 is relatively high.

🚨 Company Negative News

• 📉 FII holdings decreased (-0.29%), reflecting reduced foreign investor confidence.
• 📉 MACD negative (-7.43) and RSI weak (44.7), limiting short-term upside potential.

🌟 Company Positive News

• 📈 PAT growth quarter-on-quarter highlights strong earnings recovery.
• 📊 DII inflows (+0.12%) add support to stock momentum.
• 📈 Strong 52-week performance shows resilience in investor interest.

🏭 Industry

• 📊 Industry PE is 26.7, far lower than Adani Green’s 139, indicating severe overvaluation.
• 📈 Renewable energy sector outlook remains positive, supported by government initiatives and demand growth.

📝 Conclusion

⚖️ Adani Green is technically weak but supported by strong quarterly profit growth, making it a cautious swing trade candidate. Entry near 1,000–1,020 ₹ offers a favorable risk-reward setup, with exit near 1,150–1,170 ₹. Strict risk management is essential given stretched valuation, modest fundamentals, and weak technical indicators.

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