Adani Power Limited Fundamental Analysis (NSE: ADANIPOWER.NS)
Adani Power Limited Fundamental Analysis (NSE: ADANIPOWER.NS)
Adani Power Limited (NSE: ADANIPOWER.NS) shows strong financial fundamentals with a PE ratio of 27.56, profit margin of 24.17%, and ROE of 22.86%. The company generates $589.3B in annual revenue with strong year-over-year growth of 11.62%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ADANIPOWER.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakADANIPOWER.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateADANIPOWER.NS shows balanced valuation metrics.
Growth Score
ModerateADANIPOWER.NS shows steady but slowing expansion.
Financial Health Score
ModerateADANIPOWER.NS shows balanced financial health with some risks.
Profitability Score
ExcellentADANIPOWER.NS achieves industry-leading margins.
Key Financial Metrics
Is ADANIPOWER.NS Expensive or Cheap?
P/E Ratio
ADANIPOWER.NS trades at 27.56 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, ADANIPOWER.NS's PEG of 1.17 indicates fair valuation.
Price to Book
The market values Adani Power Limited at 5.92 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.24 times EBITDA. This signals the market has high growth expectations.
How Well Does ADANIPOWER.NS Make Money?
Net Profit Margin
For every $100 in sales, Adani Power Limited keeps $24.17 as profit after all expenses.
Operating Margin
Core operations generate 29.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.86 in profit for every $100 of shareholder equity.
ROA
Adani Power Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Adani Power Limited generates strong operating cash flow of $149.27B, reflecting robust business health.
Free Cash Flow
Adani Power Limited produces free cash flow of $43.28B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.24 in free cash annually.
FCF Yield
ADANIPOWER.NS converts 1.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How ADANIPOWER.NS Stacks Against Its Sector Peers
| Metric | ADANIPOWER.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.56 | 20.05 | Worse (Expensive) |
| ROE | 22.86% | 1031.00% | Weak |
| Net Margin | 24.17% | -566.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 1.74 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 1.71 | Weak Liquidity |
| ROA | 0.00% | 4551310.00% | Weak |
ADANIPOWER.NS outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Adani Power Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
107.62%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
656.13%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
275.56%
Industry Style: Defensive, Dividend, Income
High Growth