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Last Updated on: 27 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 539254 | NSE: ADANIENSOL

Adani Energy Solutions Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 10:45 pm

Market Cap 95,184 Cr.
Current Price 792
High / Low 1,348/588
Stock P/E64.1
Book Value 175
Dividend Yield0.00 %
ROCE9.00 %
ROE8.59 %
Face Value 10.0
PEG Ratio7.01

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

View Share Price Target for Adani Energy Solutions Ltd

Competitors of Adani Energy Solutions Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Metallic Coal & Coke Ltd 5.94 Cr. 30.0 32.8/19.9 77.60.00 %0.37 %2.00 % 100
Gensol Engineering Ltd 2,700 Cr. 713 1,377/71133.2 1550.00 %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 1,726 Cr. 172 675/161 2510.00 %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 Average5,580.50 Cr261.43227.02108.740.26%21.46%71.78%9.42

All Competitor Stocks of Adani Energy Solutions Ltd

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:46%
Compounded Profit Growth
10 Years:%
5 Years:13%
3 Years:-5%
TTM:13%
Stock Price CAGR
10 Years:%
5 Years:19%
3 Years:-23%
1 Year:-23%
Return on Equity
10 Years:12%
5 Years:11%
3 Years:11%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:46 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.051,0901,1001,1001,1001,1001,1001,1001,1001,1151,1151,201
Reserves0-71,5721,8474,9576,9437,3997,8198,81310,63411,52619,784
Borrowings09,7018,5858,97510,42820,13724,24627,09529,90234,27037,07039,009
Other Liabilities07084898907814,3796,9667,2197,6507,9138,8279,113
Total Liabilities011,49211,74612,81117,26532,55839,71143,23447,46453,93258,53869,107
Fixed Assets010,57310,0609,8539,29124,41224,92426,98730,27232,64538,92038,186
CWIP0102581,3432,3536942,2125,2555,0606,2003,0034,355
Investments002010503363134425611,3707661,608
Other Assets09091,4071,5105,6217,11712,26210,55011,57213,71615,84924,958
Total Assets011,49211,74612,81117,26532,55839,71143,23447,46453,93258,53869,107

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

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Aug 2024
Promoters74.92%74.92%73.87%73.87%74.19%71.64%68.27%73.22%73.22%73.22%74.95%69.59%
FIIs20.80%20.57%20.01%19.93%19.32%21.04%19.65%17.74%17.49%17.49%15.53%19.23%
DIIs2.92%3.21%3.43%3.59%3.78%3.80%3.82%3.87%3.82%3.80%3.97%5.33%
Public1.36%1.30%2.70%2.61%2.72%3.51%8.26%5.17%5.46%5.49%5.54%5.84%
No. of Shareholders95,73188,9411,25,7331,27,0951,52,4323,22,8514,26,1354,21,0574,76,6264,78,1254,93,6214,54,140

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 BeES316,9720.833.8529,8792024-12-25960.85%
ICICI Prudential Nifty Next 50 Index Fund292,1370.831.229,8792024-12-25877.73%
UTI Nifty Next 50 Index Fund236,5760.825.2629,8792024-12-25691.78%
SBI Nifty Next 50 ETF157,1150.816.7829,8792024-12-25425.84%
UTI Nifty Next 50 Exchange Traded Fund125,6080.813.4129,8792024-12-25320.39%
SBI Nifty Next 50 Index Fund50,3130.85.3729,8792024-12-2568.39%
HDFC NIFTY Next 50 Index Fund34,5050.83.6829,8792024-12-2515.48%
ICICI Prudential Nifty Next 50 ETF33,3760.83.5629,8792024-12-2511.7%
Axis Nifty 100 Index Fund31,2430.283.3429,8792024-12-254.57%
DSP Nifty Next 50 Index Fund29,8790.83.1929,8792024-12-250%

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 of Adani Energy Solutions Ltd as of December 27, 2024 is: 982.85

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 December 27, 2024, Adani Energy Solutions Ltd is Undervalued by 24.10% compared to the current share price 792.00

Intrinsic Value of Adani Energy Solutions Ltd as of December 27, 2024 is: 1,072.74

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 December 27, 2024, Adani Energy Solutions Ltd is Undervalued by 35.45% compared to the current share price 792.00

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 (20,784.83) compared to reserves (6,773.92), 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: 20.61%)
      • 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: 61.73%)
      • 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: 64.1 (Industry average Stock P/E: 131.67)
      • 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

Adani Transmission Ltd. is a Public Limited Listed company incorporated on 09/12/2013 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L40300GJ2013PLC077803 and registration number is 077803. Currently Company is involved in the business activities of Electric power generation using other non conventional sources. Company’s Total Operating Revenue is Rs. 739.81 Cr. and Equity Capital is Rs. 1099.81 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Power - Transmission/EquipmentAdani Corporate House, Shantigram, Nr. Vaishno Devi Circle, Ahmedabad Gujarat 382721jaladhi.shukla@adani.com
http://www.adanitransmission.com
Management
NamePosition Held
Mr. Gautam S AdaniChairman
Mr. Anil SardanaManaging Director
Mr. Rajesh S AdaniDirector
Mr. K JairajIndependent Director
Mrs. Meera ShankarIndependent Director
Dr. Ravindra H DholakiaIndependent Director
Mrs. Lisa Caroline MacCallumIndependent Director

FAQ

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

The latest intrinsic value of Adani Energy Solutions Ltd as on 27 December 2024 is ₹982.85, which is 24.10% higher than the current market price of ₹792.00. The stock has a market capitalization of 95,184 Cr. and recorded a high/low of 1,348/588 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹19,784 Cr and total liabilities of ₹69,107 Cr.

What is the Market Cap of Adani Energy Solutions Ltd?

The Market Cap of Adani Energy Solutions Ltd is 95,184 Cr..

What is the current Stock Price of Adani Energy Solutions Ltd as on 27 December 2024?

The current stock price of Adani Energy Solutions Ltd as on 27 December 2024 is 792.

What is the High / Low of Adani Energy Solutions Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Adani Energy Solutions Ltd stocks is 1,348/588.

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

The Stock P/E of Adani Energy Solutions Ltd is 64.1.

What is the Book Value of Adani Energy Solutions Ltd?

The Book Value of Adani Energy Solutions Ltd is 175.

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