Check Before You Invest : Adani Energy Solutions Ltd

Snapshot

Q.1 Which industry/sub-sector does Adani Energy Solutions Ltd belong to?

Adani Energy Solutions Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is Adani Energy Solutions Ltd a good quality company?

Adani Energy Solutions Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Adani Energy Solutions Ltd undervalued or overvalued?

Adani Energy Solutions Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Adani Energy Solutions Ltd a good buy now?

Adani Energy Solutions Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd revenue growth is 27.7% for FY-2025, which is above its 5-year CAGR of 17.7%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd Return on capital employed is 5.29% for FY-2025, which is in line with its 5-year historical median of 5.44%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd Return on Asset is 2.75%, which is above its 5-year historical median of 1.33%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd Return on equity is 4.03% for FY-2025, which is above its 5-year historical median of 3.05%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd Cash conversion cycle is 59 days, above its 5-year historical median of -1 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.09	0.06
ROE	4.03	3.05
ROCE	5.29	5.44
Cash Conversion Cycle	59 days	-1 days

Q.6 Gross Profit margin of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.4% for FY-2025, which is above its 5-year median of 24.8%, indicating increasing margins.

Q.7 Operating Profit Margin of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.56% for FY-2025, which is above its 5-year median of -0.3% indicating increasing margins.

Q.8 Net Profit Margin of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd Net Profit Margin is 31.88% for FY-2025, is above with its 5-year median of 24.75%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	32.4	24.8
Operating Profit Margin	2.56	-0.3
Net Profit Margin	31.88	24.75

Q.9 Debt to Equity ratio of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd Debt-to-Equity ratio is 0.40, which is lower with the industry average of 1.63, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Adani Energy Solutions Ltd?

Adani Energy Solutions Ltd Debt to cash flow from operations is -8.27, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Adani Energy Solutions Ltd?

Promoters hold 72.73% of the Adani Energy Solutions Ltd, with 0.54% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Adani Energy Solutions Ltd vs industry peers?

Adani Energy Solutions Ltd revenue CAGR is 17.70%, compared to the industry median CAGR of 17.64%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	27.7	17.6
Gross Profit Growth	-5	21.8
Operating Profit Growth	276.9	11.7
Net Profit Growth	3.9	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.09	0.27
ROE	4.03	16.15
ROCE	5.29	11.23
Cash Conversion Cycle (days)	58.87	68

Valuation & price assessment

Q.1 Stock return of Adani Energy Solutions Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 46.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	46.9%	4.4%	12%	54.9%

Q.3 Valuation ratios of Adani Energy Solutions Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	296.48	203.59	27.19
Price to Book	8.1	10.41	1.80
Price to Sales	50.05	126.97	6.78
EV to EBITDA	122.7	149.44	13.53

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