Adani Green Energy Limited
Adani Green Energy Limited Fundamental Analysis
Adani Green Energy Limited (ADANIGREEN.NS) shows moderate financial fundamentals with a PE ratio of 133.12, profit margin of 12.78%, and ROE of 8.99%. The company generates $125.0B in annual revenue with strong year-over-year growth of 22.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -28.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ADANIGREEN.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakADANIGREEN.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakADANIGREEN.NS trades at a premium to fair value.
Growth Score
ExcellentADANIGREEN.NS delivers strong and consistent growth momentum.
Financial Health Score
WeakADANIGREEN.NS carries high financial risk with limited liquidity.
Profitability Score
WeakADANIGREEN.NS struggles to sustain strong margins.
Key Financial Metrics
Is ADANIGREEN.NS Expensive or Cheap?
P/E Ratio
ADANIGREEN.NS trades at 133.12 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ADANIGREEN.NS's PEG of 4.79 indicates potential overvaluation.
Price to Book
The market values Adani Green Energy Limited at 11.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.87 times EBITDA. This is generally considered low.
How Well Does ADANIGREEN.NS Make Money?
Net Profit Margin
For every $100 in sales, Adani Green Energy Limited keeps $12.78 as profit after all expenses.
Operating Margin
Core operations generate 57.21 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.99 in profit for every $100 of shareholder equity.
ROA
Adani Green Energy Limited generates $1.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adani Green Energy Limited generates strong operating cash flow of $42.30B, reflecting robust business health.
Free Cash Flow
Adani Green Energy Limited generates weak or negative free cash flow of $-76.57B, restricting financial flexibility.
FCF Per Share
Each share generates $-46.49 in free cash annually.
FCF Yield
ADANIGREEN.NS converts -3.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
133.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.79
vs 25 benchmark
P/B Ratio
Price to book value ratio
11.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
16.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How ADANIGREEN.NS Stacks Against Its Sector Peers
| Metric | ADANIGREEN.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 133.12 | 20.42 | Worse (Expensive) |
| ROE | 8.99% | 900.00% | Weak |
| Net Margin | 12.78% | 724.00% | Weak |
| Debt/Equity | 5.08 | 1.46 | Weak (High Leverage) |
| Current Ratio | 0.57 | 1.30 | Weak Liquidity |
| ROA | 1.15% | -4801.00% (disorted) | Weak |
ADANIGREEN.NS outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adani Green Energy Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-19.29%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
1238.33%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-22.83%
Industry Style: Defensive, Dividend, Income
Declining