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Last Updated on: 16 September, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 539254 | NSE: ADANIENSOL

Adani Energy Solutions Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: September 16, 2024, 10:29 pm

Market Cap 1,17,762 Cr.
Current Price 980
High / Low1,348/686
Stock P/E109
Book Value 113
Dividend Yield0.00 %
ROCE9.00 %
ROE8.59 %
Face Value 10.0
PEG Ratio11.92

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

Competitors of Adani Energy Solutions Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Metallic Coal & Coke Ltd 5.94 Cr. 30.032.8/17.1 77.60.00 %0.37 %2.00 % 100
Gensol Engineering Ltd 3,453 Cr. 9111,377/61159.3 86.00.00 %14.3 %20.1 % 10.0
Gagan Polycot India Ltd 0.86 Cr. 0.86/ 4.080.00 %81.2 %81.2 % 10.0
Fusion Micro Finance Ltd 3,102 Cr. 309675/2818.88 2830.00 %14.1 %19.6 % 10.0
Five X Tradecom Ltd 0.99 Cr. 0.48/ 9.350.00 %0.00 %0.00 % 10.0
Industry Average6,751.30 Cr231.81128.0485.400.24%22.48%74.52%9.57

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales2,8302,5412,9122,9753,1323,2513,5523,3583,6643,6744,5634,7075,379
Expenses1,4391,5872,0112,0292,4592,0882,0742,1542,3952,3243,0923,1413,728
Operating Profit1,3909549019456731,1641,4781,2031,2691,3501,4711,5661,651
OPM %49%38%31%32%22%36%42%36%35%37%32%33%31%
Other Income10633542443665319823050210893262204-1,395
Interest614540560650740714697630616641760750811
Depreciation342353363370384398410416419432458468498
Profit before tax540396402362202250600660343370515552-1,053
Tax %20%27%31%35%17%22%20%33%47%23%32%31%13%
Net Profit433289277237168194478440182284348381-1,191
EPS in Rs3.962.482.432.091.671.854.263.491.572.472.913.24-7.39

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales01312,1942,8763,9447,30511,4169,92611,25813,29315,258
Expenses0292678931,1184,5287,1585,9767,0518,7759,965
Operating Profit01011,9271,9832,8262,7784,2583,9504,2064,5185,293
OPM %78%88%69%72%38%37%40%37%34%35%
Other Income0370221113362611,1151,2861,583965
Interest0739579048861,3912,2382,1172,3652,7812,647
Depreciation0375605695798821,1741,3291,4271,6081,724
Profit before tax0-54805321,4728401,1071,6201,7001,7121,887
Tax %-34%23%22%22%33%36%20%27%25%
Net Profit0-73684161,1435597061,2901,2361,2811,254
EPS in Rs0.00-0.063.353.7910.395.086.7411.1310.9511.2610.44
Dividend Payout %0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)5357.14%13.04%174.76%-51.09%26.30%82.72%-4.19%3.64%
Change in YoY Net Profit Growth (%)0.00%-5344.10%161.72%-225.85%77.39%56.42%-86.91%7.83%

Adani Energy Solutions Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:18%
3 Years:19%
TTM:33%
Compounded Profit Growth
10 Years:%
5 Years:13%
3 Years:-5%
TTM:-12%
Stock Price CAGR
10 Years:%
5 Years:34%
3 Years:-19%
1 Year:16%
Return on Equity
10 Years:12%
5 Years:11%
3 Years:11%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital01,0901,1001,1001,1001,1001,1001,1001,1001,1151,115
Reserves0-71,5721,8474,9576,9437,3997,8198,81310,63411,526
Borrowings09,7018,5858,97510,42820,13724,24627,09529,90234,27037,070
Other Liabilities07084898907814,3796,9667,2197,6507,9138,827
Total Liabilities011,49211,74612,81117,26532,55839,71143,23447,46453,93258,538
Fixed Assets010,57310,0609,8539,29124,41224,92426,98730,27232,64538,920
CWIP0102581,3432,3536942,2125,2555,0606,2003,003
Investments002010503363134425611,370766
Other Assets09091,4071,5105,6217,11712,26210,55011,57213,71615,849
Total Assets011,49211,74612,81117,26532,55839,71143,23447,46453,93258,538

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 0-351,5442,1892,1982,5915,4373,7844,0973,7776,038
Cash from Investing Activity 0-1,864-816-1,730-3,192-3,050-5,643-4,009-3,936-4,699-4,943
Cash from Financing Activity 01,902-722-4551,589381,250-745-235923-543
Net Cash Flow0364596-4211,045-969-752551

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow0.0092.00-7.00-7.00-8.00-18.00-20.00-24.00-25.00-30.00

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 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days1,255302424363237353934
Inventory Days
Days Payable
Cash Conversion Cycle1,255302424363237353934
Working Capital Days-1,7681-9-22-9454-5-30119
ROCE %1%13%12%17%10%11%11%10%10%9%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters74.92%74.92%74.92%74.92%74.92%73.87%73.87%74.19%71.64%68.27%73.22%73.22%
FIIs20.30%20.82%21.05%20.80%20.57%20.01%19.93%19.32%21.04%19.65%17.74%17.49%
DIIs2.55%2.53%2.54%2.92%3.21%3.43%3.59%3.78%3.80%3.82%3.87%3.82%
Public2.23%1.73%1.49%1.36%1.30%2.70%2.61%2.72%3.51%8.26%5.17%5.46%
No. of Shareholders75,5271,27,1371,13,37595,73188,9411,25,7331,27,0951,52,4323,22,8514,26,1354,21,0574,76,626

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 BeES316,9720.833.8529,8792024-09-15960.85%
ICICI Prudential Nifty Next 50 Index Fund292,1370.831.229,8792024-09-15877.73%
UTI Nifty Next 50 Index Fund236,5760.825.2629,8792024-09-15691.78%
SBI Nifty Next 50 ETF157,1150.816.7829,8792024-09-15425.84%
UTI Nifty Next 50 Exchange Traded Fund125,6080.813.4129,8792024-09-15320.39%
SBI Nifty Next 50 Index Fund50,3130.85.3729,8792024-09-1568.39%
HDFC NIFTY Next 50 Index Fund34,5050.83.6829,8792024-09-1515.48%
ICICI Prudential Nifty Next 50 ETF33,3760.83.5629,8792024-09-1511.7%
Axis Nifty 100 Index Fund31,2430.283.3429,8792024-09-154.57%
DSP Nifty Next 50 Index Fund29,8790.83.1929,8792024-09-150%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)10.2011.108.909.022.94
Diluted EPS (Rs.)10.2011.105.069.022.94
Cash EPS (Rs.)26.6425.8924.2123.8117.10
Book Value[Excl.RevalReserv]/Share (Rs.)122.84114.3972.2965.4057.12
Book Value[Incl.RevalReserv]/Share (Rs.)122.84114.3972.2965.4057.12
Revenue From Operations / Share (Rs.)148.88119.16102.3690.25103.80
PBDIT / Share (Rs.)60.8045.4143.7340.7643.21
PBIT / Share (Rs.)44.8831.0030.7628.6832.53
PBT / Share (Rs.)15.9515.3515.4614.7310.06
Net Profit / Share (Rs.)10.7211.4811.2411.736.42
NP After MI And SOA / Share (Rs.)10.2011.2610.9511.136.74
PBDIT Margin (%)40.8338.1042.7245.1641.62
PBIT Margin (%)30.1426.0130.0531.7731.34
PBT Margin (%)10.7112.8715.1016.319.69
Net Profit Margin (%)7.199.6310.9712.996.18
NP After MI And SOA Margin (%)6.849.4510.7012.336.49
Return on Networth / Equity (%)8.9910.7717.5620.1014.21
Return on Capital Employeed (%)9.907.378.148.6310.57
Return On Assets (%)1.942.322.532.831.86
Long Term Debt / Equity (X)2.652.694.053.914.27
Total Debt / Equity (X)2.932.934.354.234.51
Asset Turnover Ratio (%)0.290.260.020.020.03
Current Ratio (X)1.201.270.950.741.48
Quick Ratio (X)1.171.250.900.711.38
Interest Coverage Ratio (X)2.451.822.032.122.12
Interest Coverage Ratio (Post Tax) (X)1.601.091.251.331.42
Enterprise Value (Cr.)150269.27144907.00290323.62125490.1943049.66
EV / Net Operating Revenue (X)9.0510.9025.7912.643.77
EV / EBITDA (X)22.1628.6160.3627.999.06
MarketCap / Net Operating Revenue (X)6.898.3723.1810.061.82
Price / BV (X)9.059.5438.0516.413.98
Price / Net Operating Revenue (X)6.898.3723.1810.061.82
EarningsYield0.010.010.000.010.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹1,079.19

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.

Undervalued: 10.12% compared to the current price ₹980.00

Intrinsic Value: 1,177.89

Calculation basis:

  • Fair 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.

Undervalued: 20.19% compared to the current price ₹980.00

Last 5 Year EPS CAGR: 9.15%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -7.82, which is a positive sign.
  2. The company has shown consistent growth in sales (18.55 cr) and profit (168.45 cr) over the years.
  1. The stock has a low average ROCE of 9.45%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 26.55, which may not be favorable.
  3. The company has higher borrowings (19,128.09) compared to reserves (5,591.18), which may suggest financial risk.

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 Energy Solutions Ltd:
    1. Net Profit Margin: 7.19%
      • 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: 9.9% (Industry Average ROCE: 22.48%)
      • 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%: 8.99% (Industry Average ROE: 74.52%)
      • 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): 1.6
      • 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: 1.17
      • 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: 109 (Industry average Stock P/E: 128.04)
      • 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: 2.93
      • 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

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Industry not foundAddress not foundContact not found
Management Data not Available

FAQ

What is the latest fair value of Adani Energy Solutions Ltd?

The latest fair value of Adani Energy Solutions Ltd is ₹1079.19.

What is the Market Cap of Adani Energy Solutions Ltd?

The Market Cap of Adani Energy Solutions Ltd is 1,17,762 Cr..

What is the current Stock Price of Adani Energy Solutions Ltd as on 16 September 2024?

The current stock price of Adani Energy Solutions Ltd as on 16 September 2024 is ₹980.

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

In FY 2024, the High / Low of Adani Energy Solutions Ltd stocks is 1,348/686.

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

The Stock P/E of Adani Energy Solutions Ltd is 109.

What is the Book Value of Adani Energy Solutions Ltd?

The Book Value of Adani Energy Solutions Ltd is 113.

What is the Dividend Yield of Adani Energy Solutions Ltd?

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

What is the ROCE of Adani Energy Solutions Ltd?

The ROCE of Adani Energy Solutions Ltd is 9.00 %.

What is the ROE of Adani Energy Solutions Ltd?

The ROE of Adani Energy Solutions Ltd is 8.59 %.

What is the Face Value of Adani Energy Solutions Ltd?

The Face Value of Adani Energy Solutions 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 Energy Solutions 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