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Adani Power Ltd Stock Analysis

Large Cap
Evaluated by 4240 users | BSE: 533096 | NSE: ADANIPOWER |
Power Generation/Distribution

Adani Power Limited (APL), a part of the diversified Adani Group, is the largest private thermal power producer in India. The company has a huge power generation capacity comprising thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, and...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Adani Power Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 3.83%1.62%-1.6%9.27%4.32%6.39%-4.04%1.27%2.73%0.81%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,1063,9516,33310,85310,62512,87510,8688,1212,4041,005
Y-o-Y Gr. Rt.-87.6%60.3%71.4%-2.1%21.2%-15.6%-25.3%-70.4%-58.2%
Adjusted EPS (Rs.) 2.43-0.43-72.49-1.220.29-9.19-2.8-0.56-1.61
Y-o-Y Gr. Rt.--117.7%NANA-149%NA-3269%NANANA
Book Value per Share (Rs.) 2927.0318.9326.7326.6327.0712.1224.7323.6718.6
Adjusted Net Profit 529-93.6-1,676714-35297.6-3,545-1,081-215-620
Net Op. Cash Flow (Rs. Cr.) 1,4505411,8203,3862,3931,869659-333-16794.7
Debt to Cash Flow from Ops 11.9649.8215.437.479.9914.4541.36-28.8-116.62151.82
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Adani Power Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -7.9%-37.6%-54.8%-58.2%
Adjusted EPS -195.5%NANANA
Book Value per Share -4.8-6.915.4-21.4
Share Price 2.9% 20.9% 51.8% 204.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 8.72-1.52-31.411.49-4.541.17-51.76-15.21-2.31-7.61
Operating Profit Margin (%) 58.9134.9714.6232.9723.4727.511.6310.930.01-1.19
Net Profit Margin (%) 25.1-2.37-26.476.58-3.310.76-32.61-13.31-8.96-61.67
Debt to Equity 2.744.576.23.293.132.995.8412.142
Working Capital Days 4224483782593483564124941,6792,665
Cash Conversion Cycle -229223-13-15663-5-15-80
Entity Percentage Holding
Promoters 74.97%
Institutions 18.89%
Non-Institutions 6.14%
Pledged *32.0529.3430.2029.3229.3229.9032.4631.6430.0529.21
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Adani Power Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Adani Power Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Adani Power Ltd's performance infers:

Adani Power Ltd earnings have grown by 0%, whereas share price has appreciated 20.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Adani Power Ltd share prices over the last 10 years. Here is what we found out:

Adani Power Ltd share price has appreciated -2.6% annually over the past ten years.

Adani Power Limited (APL), a part of the diversified Adani Group, is the largest private thermal power producer in India. The company has a huge power generation capacity comprising thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh and a solar power project in Gujarat.

The company was the world’s first company to set up a coal-based Supercritical thermal power project

Adani Power Limited (APL), a part of the diversified Adani Group, is the largest private thermal power producer in India. The company has a huge power generation capacity comprising thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh and a solar power project in Gujarat.

The company was the world’s first company to set up a coal-based Supercritical thermal power project registered under the Clean Development Mechanism (CDM) of the Kyoto protocol. Being a new entrant to power generation in 2006, it leveraged the project management skills of the Adani Group to set up its first power plant at Mundra successfully and efficiently.

The power sector in India has undergone a challenging period in the past few years, which put to test the resilience of its business model. By navigating the challenges through prudence, persistence and discipline, it has implemented the best available technologies and practices that can serve as benchmarks for the power industry.

Business area of the company

The company is engaged in the business of generation, accumulation, distribution and supply of power and to generally deal in electricity and to explore, develop, generate, accumulate, supply and distribute or to deal in other forms of energy from any source whatsoever.

Awards and recognitions

FY 2016-17

  • ISO 50001 Certification for Energy management System by TuV, Nord Germany;
  • JUSE 5S Certification for Work Place management System by JUSE, which is first ever in the group;
  • QCFI: Quality Leadership Award (Private Sector) - 2016 given on the recommendations from QCFI representatives and the data of the respective organization, and the contribution of Chief Executives from various Private Sector Organizations practicing Quality Concepts at 30th National Convention on Quality Concepts;
  • 5S case study in Competition at National Conclave on 5S Quality Circle Forum of India.( Highest Level of
    Recognition)

FY 2017-18

  • ISO 9001:2015- Certification for Quality Management System by TuV, Nord Germany
  • ISO 14001:2015- Certification for Environment Management System by TuV, Nord Germany
  • OHSAS 18001:2007- Certification for Occupational Health & Safety Assessment System by TuV, Nord
    Germany
  • Power Awards 2017 - Recognition and appreciation of the contributions by UPCL for meeting almost 12% of total power requirement of Karnataka, by Government of Karnataka
  • IPPAI Power Awards 2017 - The Most Innovative Young Power Professional by IPPAI (Independent Power Producers Association of India) at the 18th Regulators & Policymakers Retreat
  • Finalist - Asia Sustainability Reporting Awards(ASRA) 2017 - Recognition for best sustainability reporting in Asia by CSR Works International with support of British Chamber of Commerce and High Commission of Canada at Singapore.
  • Srishti Environment Award 2018 - Recognition for best Environment Management practices by Srishti Publications

FY 2018-19

  • The company’s wholly owned subsidiary Company namely Adani Power Rajasthan Limited has obtained: Srishti Environment Award 2018 - Recognition for best Environment Management practices.

FY 2019-20

  • Sword of Honour awarded to Adani Power Rajasthan Limited (APRL) by British Safety Council
  • Excellence award during 5S Conclave at Varanasi to two teams from APRL
  • Udupi Power Corporation Limited (UPCL) won Platinum prize at FICCI Safety Systems Excellence Awards
  • Adani Power (Mundra) Limited (APMuL) certified for ISO 45000:2018 (OHSAS) and ISO 50001:2018 (EMS) in December 2019
  • 5-star certificate from Maharashtra Pollution Control Board to Adani Power Maharashtra Limited (APML) for stack emissions for 3rd consecutive year
  • APML, APRL, UPCL certified with ISO45001:2018 (OHS), ISO50001:2018 (Environment Management System)
  • APMuL, APML, APRL and UPCL certified for 5S (Workplace Management System)
  • APML won the IMC Ramakrishna Bajaj National Quality Awards Trust Performance Excellence Trophy 2019

Milestones

2013

  • Adani Power’s Mundra plant sets a record in power generation
  • Adani Power Maharashtra Commissions 3rd Super Critical
  • Adani begins integrated coal MDO operations in India

2014

  • Adani Power commissions Kawai power project
  • Adani Power emerges as India’s largest private power producer
  • Adani Power to acquire Lanco Infratech’s Udupi project for Rs 6000 crore, Installed capacity to rise to 10,440 mw
  • Adani Power to acquire Avantha Power’s Korba West Power Project in Chattisgarh

2015

  • Adani Power completes acquisition of Lanco Infratech’s Udupi Power plant
  • Adani Power emerges as the largest private thermal power player in the country with a generation capacity of 10440 MW

2016

  • Adani unveils the world’s largest solar power plant in Tamil Nadu and dedicates it to the nation

2017

  • A 330 MW unit at Adani Power’s Mundra plant creates a new national record by running continuously for 600 days
  • Adani Group Ensures Energy Security at Competitive Tariff; Refutes Allegation

2019

  • APL completed the acquisition of GMR Chhattisgarh Energy Ltd. (GCEL)
  • APL completed the acquisition of Korba West Power Company Ltd. (KWPCL).
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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