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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 541450 | NSE: ADANIGREEN

Adani Green Energy Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 1:10 pm

Market Cap 2,49,857 Cr.
Current Price 1,577
High / Low2,174/910
Stock P/E194
Book Value 66.8
Dividend Yield0.00 %
ROCE9.81 %
ROE17.1 %
Face Value 10.0
PEG Ratio3.25

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Adani Green Energy Ltd

Competitors of Adani Green Energy Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
GMR Power & Urban Infra Ltd 7,999 Cr. 112169/36.6 11.10.00 %11.4 %% 5.00
Gita Renewable Energy Ltd 68.7 Cr. 167310/107215 32.80.00 %2.71 %1.91 % 10.0
SJVN Ltd 40,779 Cr. 104170/75.044.1 37.21.73 %4.99 %5.90 % 10.0
Rattanindia Power Ltd 7,475 Cr. 13.921.1/7.90 8.300.00 %8.39 %% 10.0
PTC India Ltd 5,344 Cr. 181255/14810.4 1744.32 %9.64 %9.57 % 10.0
Industry Average72,370.42 Cr292.3873.3094.180.77%8.97%11.23%8.14

All Competitor Stocks of Adani Green Energy Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales9771,2951,4001,4611,6351,5841,9712,5982,1622,2202,3112,5272,835
Expenses2235253574896877181,11833481521645676415
Operating Profit7547701,0439729488668532,2642,0811,6991,6661,8512,420
OPM %77%59%74%67%58%55%43%87%96%77%72%73%85%
Other Income1821157111166100216265178353264199241
Interest5246138136674584986171,3381,3931,1651,2421,2061,440
Depreciation151164260274280298330392451474481497593
Profit before tax26110841142276170122799415413207347628
Tax %16%7%-17%15%21%14%52%38%34%29%33%24%28%
Net Profit21910049121214149103507323371256310629
EPS in Rs1.400.640.310.771.350.940.653.212.032.351.620.952.82

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5021,4802,0582,5493,1245,1337,7929,291
Expenses986375321,0998831,6212,8221,581
Operating Profit4038431,5261,4502,2413,5124,9707,710
OPM %80%57%74%57%72%68%64%83%
Other Income804273-1113915076671,060
Interest3345521,1219951,9532,6172,9115,138
Depreciation3335431,0623944868491,3001,798
Profit before tax-184-210-585-501935531,4261,834
Tax %75%35%19%-22%6%12%32%
Net Profit-47-138-475-681824899731,457
EPS in Rs-0.37-1.00-3.03-0.151.343.136.159.21
Dividend Payout %0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-193.62%-244.20%85.68%367.65%168.68%98.98%
Change in YoY Net Profit Growth (%)0.00%-50.59%329.89%281.96%-198.97%-69.70%

Adani Green Energy Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2017-2018 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:35%
3 Years:43%
TTM:20%
Compounded Profit Growth
10 Years:%
5 Years:36%
3 Years:68%
TTM:-12%
Stock Price CAGR
10 Years:%
5 Years:73%
3 Years:4%
1 Year:58%
Return on Equity
10 Years:%
5 Years:16%
3 Years:19%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:47 am

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital1,2741,5641,5641,5641,5641,5641,5841,5841,584
Reserves-71-2233697936361,0505,7205,9128,992
Borrowings4,3479,86411,14214,86624,20952,83254,22364,85867,430
Other Liabilities6104,5031,5821,2012,2833,5085,38215,73220,252
Total Liabilities6,16015,70914,65818,42428,69258,95466,90988,08698,258
Fixed Assets4,3419,12010,38812,55416,42928,45248,33662,28464,632
CWIP2671,7257431,2084,45219,8995,2916,42714,617
Investments2687774765025741,1491,5152,331
Other Assets1,5254,7773,4494,1867,30910,02912,13317,86016,678
Total Assets6,16015,70914,65818,42428,69258,95466,90988,08698,258

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +286491,6251,9651,6013,1277,2657,713
Cash from Investing Activity +-1,511-4,428-2,666-3,743-9,137-18,730-3,857-21,060
Cash from Financing Activity +1,5593,9421,0452,1617,08315,986-2,97313,953
Net Cash Flow761623383-453383435606

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow399.00834.00-10.00-13.00-22.00-49.00-50.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days24520913410617512910453
Inventory Days383
Days Payable455
Cash Conversion Cycle2452096310617512910453
Working Capital Days244-345-51-307910227-7
ROCE %4%4%8%10%8%8%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters60.14%61.27%61.27%60.50%60.75%60.75%57.26%56.27%56.26%56.37%56.37%57.51%
FIIs17.83%16.59%16.53%15.91%15.25%15.14%17.13%18.25%18.16%18.03%18.15%16.91%
DIIs0.32%0.62%0.79%0.98%1.26%1.40%1.45%1.47%1.49%1.50%1.55%1.46%
Public21.71%21.51%21.41%22.61%22.74%22.70%24.16%24.00%24.09%24.10%23.93%24.11%
No. of Shareholders2,21,0251,89,6122,28,4693,71,7643,85,2973,93,1677,46,2946,92,3406,76,2716,93,0646,68,5867,42,579

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India ETF Nifty Next 50 Junior BeES383,4221.5264.01280,0002024-11-1236.94%
ICICI Prudential Nifty Next 50 Index Fund353,3851.5259280,0002024-11-1226.21%
UTI Nifty Next 50 Index Fund286,1751.5247.78280,0002024-11-122.21%
Quant Flexi Cap Fund280,0001.3246.74280,0002024-11-120%
SBI Nifty Next 50 ETF190,0541.5231.73280,0002024-11-12-32.12%
Quant Focused Fund165,0004.227.55280,0002024-11-12-41.07%
UTI Nifty Next 50 Exchange Traded Fund151,9431.5225.37280,0002024-11-12-45.73%
Quant Large Cap Fund90,0002.8115.03280,0002024-11-12-67.86%
SBI Nifty Next 50 Index Fund60,8631.5210.16280,0002024-11-12-78.26%
HDFC NIFTY Next 50 Index Fund41,7361.526.97280,0002024-11-12-85.09%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)6.215.412.410.68-0.74
Diluted EPS (Rs.)6.205.412.410.68-0.74
Cash EPS (Rs.)18.1413.988.554.232.13
Book Value[Excl.RevalReserv]/Share (Rs.)101.1637.417.615.034.59
Book Value[Incl.RevalReserv]/Share (Rs.)101.1637.417.615.034.59
Revenue From Operations / Share (Rs.)58.2149.1932.8219.9716.30
PBDIT / Share (Rs.)53.9036.4425.2817.339.79
PBIT / Share (Rs.)41.8828.2319.8514.227.26
PBT / Share (Rs.)8.728.633.531.20-0.31
Net Profit / Share (Rs.)6.135.773.121.13-0.39
NP After MI And SOA / Share (Rs.)6.946.153.131.34-0.14
PBDIT Margin (%)92.5974.0777.0386.7460.05
PBIT Margin (%)71.9557.3960.4971.1944.58
PBT Margin (%)14.9817.5410.755.98-1.95
Net Profit Margin (%)10.5311.729.505.63-2.40
NP After MI And SOA Margin (%)11.9312.509.526.72-0.91
Return on Networth / Equity (%)13.0716.5641.0924.39-3.04
Return on Capital Employeed (%)10.747.596.579.757.37
Return On Assets (%)1.241.440.820.73-0.12
Long Term Debt / Equity (X)4.828.2735.9022.9316.99
Total Debt / Equity (X)7.508.9943.8627.2218.45
Asset Turnover Ratio (%)0.110.170.370.150.11
Current Ratio (X)0.510.920.510.670.85
Quick Ratio (X)0.500.910.510.660.82
Interest Coverage Ratio (X)1.711.981.511.391.54
Interest Coverage Ratio (Post Tax) (X)1.241.381.161.131.13
Enterprise Value (Cr.)352407.68190594.04349850.76195058.5237370.06
EV / Net Operating Revenue (X)38.2224.4668.1662.4414.66
EV / EBITDA (X)41.2833.0288.4871.9824.41
MarketCap / Net Operating Revenue (X)31.5117.9358.3055.299.43
Price / BV (X)34.5423.76251.50200.6031.49
Price / Net Operating Revenue (X)31.5117.9358.3055.299.43
EarningsYield0.000.010.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Adani Green Energy Ltd as of November 14, 2024 is: 2,260.34

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, Adani Green Energy Ltd is Undervalued by 43.33% compared to the current share price 1,577.00

Intrinsic Value of Adani Green Energy Ltd as of November 14, 2024 is: 3,607.83

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, Adani Green Energy Ltd is Undervalued by 128.78% compared to the current share price 1,577.00

Last 5 Year EPS CAGR: 59.61%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 2.38, which is a positive sign.
  1. The stock has a low average ROCE of 6.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 135.50, which may not be favorable.
  3. The company has higher borrowings (33,752.33) compared to reserves (2,575.33), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (66.38) and profit (-35.13).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Adani Green Energy Ltd:
    1. Net Profit Margin: 10.53%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 10.74% (Industry Average ROCE: 8.97%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.07% (Industry Average ROE: 11.23%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.24
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.5
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 194 (Industry average Stock P/E: 73.3)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 7.5
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Adani Green Energy Ltd. is a Public Limited Listed company incorporated on 23/01/2015 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L40106GJ2015PLC082007 and registration number is 082007. Currently Company is involved in the business activities of Electric power generation using solar energy. Company’s Total Operating Revenue is Rs. 10672.00 Cr. and Equity Capital is Rs. 1564.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Power - Generation/DistributionAdani Corporate House, Ahmedabad Gujarat 382421investor.agel@adani.com
http://www.adanigreenenergy.com
Management
NamePosition Held
Mr. Gautam S AdaniChairman
Mr. Vneet S JaainManaging Director
Mr. Sagar R AdaniExecutive Director
Mr. Sangkaran RatnamNon Exe. & Nominee Director
Mr. Dinesh Hasmukhrai KanabarInd. Non-Executive Director
Mr. Raminder Singh GujralInd. Non-Executive Director
Mr. Romesh SobtiInd. Non-Executive Director
Mrs. Neera SaggiInd. Non-Executive Director
Dr. Anup ShahInd. Non-Executive Director
Mr. Rajesh S AdaniDirector

FAQ

What is the latest intrinsic value of Adani Green Energy Ltd?

The latest intrinsic value of Adani Green Energy Ltd as on 14 November 2024 is ₹2260.34, which is 43.33% higher than the current market price of ₹1,577.00.

What is the Market Cap of Adani Green Energy Ltd?

The Market Cap of Adani Green Energy Ltd is 2,49,857 Cr..

What is the current Stock Price of Adani Green Energy Ltd as on 14 November 2024?

The current stock price of Adani Green Energy Ltd as on 14 November 2024 is ₹1,577.

What is the High / Low of Adani Green Energy Ltd stocks in FY 2024?

In FY 2024, the High / Low of Adani Green Energy Ltd stocks is 2,174/910.

What is the Stock P/E of Adani Green Energy Ltd?

The Stock P/E of Adani Green Energy Ltd is 194.

What is the Book Value of Adani Green Energy Ltd?

The Book Value of Adani Green Energy Ltd is 66.8.

What is the Dividend Yield of Adani Green Energy Ltd?

The Dividend Yield of Adani Green Energy Ltd is 0.00 %.

What is the ROCE of Adani Green Energy Ltd?

The ROCE of Adani Green Energy Ltd is 9.81 %.

What is the ROE of Adani Green Energy Ltd?

The ROE of Adani Green Energy Ltd is 17.1 %.

What is the Face Value of Adani Green Energy Ltd?

The Face Value of Adani Green Energy Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Adani Green Energy Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE