Check Before You Invest : Adani Green Energy Ltd

Snapshot

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

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

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

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

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

Adani Green Energy Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

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

Adani Green Energy 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 Green Energy Ltd?

Adani Green Energy Ltd revenue growth is 21.6% for FY-2025, which is below its 5-year CAGR of 34.48%, indicating slower growth.

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

Adani Green Energy Ltd Return on capital employed is 9.75% for FY-2025, which is in line with its 5-year historical median of 9.75%. 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 Green Energy Ltd?

Adani Green Energy Ltd Return on Asset is 2.01%, which is above its 5-year historical median of 1.55%, indicating improved asset utilization efficiency.

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

Adani Green Energy Ltd Return on equity is 26.23% for FY-2025, which is in line with its 5-year historical median of 26.23%, indicating the business is making similar use of its shareholders capital.

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

Adani Green Energy Ltd Cash conversion cycle is 25 days, below its 5-year historical median of 67 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.11	0.12
ROE	26.23	26.23
ROCE	9.75	9.75
Cash Conversion Cycle	25 days	67 days

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

Adani Green Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 41% for FY-2025, which is above its 5-year median of 36.8%, indicating increasing margins.

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

Adani Green Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 79.28% for FY-2025, which is above its 5-year median of 71.73% indicating increasing margins.

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

Adani Green Energy Ltd Net Profit Margin is 17.85% for FY-2025, is above with its 5-year median of 12.51%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	41	36.8
Operating Profit Margin	79.28	71.73
Net Profit Margin	17.85	12.51

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

Adani Green Energy Ltd Debt-to-Equity ratio is 9.49, which is above with the industry average of 1.63, indicating higher debt levels in the industry.

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

Adani Green Energy Ltd Debt to cash flow from operations is 9.5, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 62.43% of the Adani Green Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Adani Green Energy Ltd revenue CAGR is 34.48%, 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	21.6	17.6
Gross Profit Growth	30.1	21.8
Operating Profit Growth	21.3	11.7
Net Profit Growth	58.8	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.11	0.27
ROE	26.23	16.15
ROCE	9.75	11.23
Cash Conversion Cycle (days)	24.9	68

Valuation & price assessment

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

Over the last 5 year(s), the stock has delivered a CAGR of 3.91% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	3.9%	12.3%	44.2%

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

The current P/E is lower 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	132.69	212.25	27.19
Price to Book	11.36	24.19	1.80
Price to Sales	17.78	19.11	6.78
EV to EBITDA	27.18	30.16	13.53

Check more companies

1. Adani Power

2. NTPC

3. Power Grid Corp

4. Adani Green Energy

5. Adani Energy Solut.

6. Tata Power

Check trending companies

1. Samvardhana Motherson International Ltd.

2. Jindal Saw Ltd.

3. Union Bank Of India

4. Lloyds Metals & Energy Ltd.

5. Astral Ltd.