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Check Before You Invest : Adani Green Energy Ltd

BSE: 541450 NSE: ADANIGREEN ISIN: INE364U01010
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

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 34.5% , indicating slower growth.
Q.2 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.3 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.4 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 Historic Median
Gross Profit Margin 41 36.8
Operating Profit Margin 79.28 71.73
Net Profit Margin 17.85 12.51
Q.5 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.6 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 historical median of 26.23%, indicating the business is making similar use of its shareholders capital.
Q.7 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 below its estimated weighted average cost of capital(WACC) 11.25%, indicating value preservation.
Q.8 Cash conversion cycle of Adani Green Energy Ltd?
Adani Green Energy Ltd Cash conversion cycle is 25 days, below its historical median of 67 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 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.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 1.61 , 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, indicating the business is not able to service its debt comfortably.

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 26.03% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 11,212 45,895.2
Gross Profit 4,596.9 17,833.9
Operating Profit 8,877 23,369.5
Net Profit 2,001 9,665.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.11 0.31
ROE 26.23 20.12
ROCE 9.75 11.42
Cash Conversion Cycle (days) 24.9 72

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 -0.51% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - -0.5% 4.9% 21.4%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 120.37 464.40 32.46
Price to Book 9.2 87.88 1.75
Price to Sales 14.52 54.90 6.05
EV to EBITDA 23.35 79.36 12.85

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