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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 539254 | NSE: ADANIENSOL

Fundamental Analysis of Adani Energy Solutions Ltd

About the Company - Adani Energy Solutions Ltd

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 AdaniExecutive Director
Mr. K JairajNon Exe. & Ind. Director
Mrs. Meera ShankarNon Exe. & Ind. Director
Dr. Ravindra H DholakiaNon Exe. & Ind. Director
Mrs. Lisa Caroline MacCallumNon Exe. & Ind. Director

Basic Stock Data of Adani Energy Solutions Ltd

Last Updated: May 29, 2024, 9:49 pm

Market Cap 1,21,935 Cr.
Current Price 1,093
High / Low1,250/686
Stock P/E105
Book Value 107
Dividend Yield0.00 %
ROCE10.2 %
ROE11.6 %
Face Value 10.0
PEG Ratio11.48

Competitors of Adani Energy Solutions Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Power Grid Corporation of India Ltd 2,96,503 Cr. 319328/17219.0 93.73.47 %13.0 %18.3 % 10.0
Transformers & Rectifiers India Ltd (TRIL) 9,224 Cr. 648769/76.0208 38.90.03 %14.8 %9.33 % 1.00
Jyoti Structures Ltd 2,207 Cr. 26.034.0/6.47109 0.050.00 %0.20 %4.59 % 2.00
KEC International Ltd 20,062 Cr. 780839/52057.8 1590.38 %14.2 %8.82 % 2.00
Voltamp Transformers Ltd 11,400 Cr. 11,26812,500/3,87637.1 1,3380.36 %32.5 %25.0 % 10.0
Industry Average67,879.20 Cr2,608.2086.18325.930.85%14.94%13.21%5.00

Adani Energy Solutions Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,5972,7272,8302,5412,9122,9753,1323,2513,5523,3583,6643,6744,563
Expenses1,5931,8991,4391,5872,0112,0292,4592,0882,0742,1542,3952,3243,092
Operating Profit1,0048271,3909549019456731,1641,4781,2031,2691,3501,471
OPM %39%30%49%38%31%32%22%36%42%36%35%37%32%
Other Income24834910633542443665319823050210893262
Interest455494614540560650740714697630616641760
Depreciation325312342353363370384398410416419432458
Profit before tax472370540396402362202250600660343370515
Tax %2%31%20%27%31%35%17%22%20%33%47%23%32%
Net Profit463257433289277237168194478440182284348
EPS in Rs3.592.173.962.482.432.091.671.854.263.491.572.472.91

Last Updated: May 7, 2024, 11:20 pm

Adani Energy Solutions Ltd Quarterly Chart

Adani Energy Solutions Ltd Profit & Loss

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales01312,1942,8763,9447,30511,4169,92611,25813,29314,247
Expenses0292678931,1184,5287,1585,9767,0518,7758,947
Operating Profit01011,9271,9832,8262,7784,2583,9504,2064,5185,300
OPM %78%88%69%72%38%37%40%37%34%37%
Other Income0370221113362611,1151,2861,583934
Interest0739579048861,3912,2382,1172,3652,7812,584
Depreciation0375605695798821,1741,3291,4271,6081,677
Profit before tax0-54805321,4728401,1071,6201,7001,7121,973
Tax %-34%23%22%22%33%36%20%27%25%
Net Profit0-73684161,1435597061,2901,2361,2811,384
EPS in Rs0.00-0.063.353.7910.395.086.7411.1310.9511.2611.79
Dividend Payout %0%0%0%0%0%0%0%0%0%

Adani Energy Solutions Ltd 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 Growth

Compounded Sales Growth
10 Years:%
5 Years:18%
3 Years:19%
TTM:25%
Compounded Profit Growth
10 Years:%
5 Years:15%
3 Years:-2%
TTM:-9%
Stock Price CAGR
10 Years:%
5 Years:36%
3 Years:-9%
1 Year:30%
Return on Equity
10 Years:12%
5 Years:11%
3 Years:11%
Last Year:9%

Last Updated: May 24, 2024, 9:48 am

Adani Energy Solutions Ltd Balance Sheet

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital01,0901,1001,1001,1001,1001,1001,1001,1001,1151,115
Reserves0-71,5721,8474,9576,9437,3997,8198,81310,54710,782
Borrowings09,7018,5858,97510,42820,13724,24627,09529,90234,27036,031
Other Liabilities07084898907814,3796,9667,2197,6507,9997,802
Total Liabilities011,49211,74612,81117,26532,55839,71143,23447,46453,93255,730
Fixed Assets010,57310,0609,8539,29124,41224,92426,98730,27232,64536,422
CWIP0102581,3432,3536942,2125,2555,0606,2004,134
Investments002010503363134425611,370821
Other Assets09091,4071,5105,6217,11712,26210,55011,57213,71614,353
Total Assets011,49211,74612,81117,26532,55839,71143,23447,46453,93255,730

Adani Energy Solutions Ltd Reserves and Borrowings Chart

Adani Energy Solutions Ltd Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 0-351,5442,1892,1982,5915,4373,7844,0973,777
Cash from Investing Activity 0-1,864-816-1,730-3,192-3,050-5,643-4,009-3,936-4,699
Cash from Financing Activity 01,902-722-4551,589381,250-745-235923
Net Cash Flow0364596-4211,045-969-752

Adani Energy Solutions Ltd Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days1,2553024243632373539
Inventory Days
Days Payable
Cash Conversion Cycle1,2553024243632373539
Working Capital Days-1,7681-9-22-9454-5-301
ROCE %1%13%12%17%10%11%11%10%10%

Adani Energy Solutions Ltd Financial Efficiency Indicators Chart

Adani Energy Solutions Ltd 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

Adani Energy Solutions Ltd Shareholding Pattern Chart

No. of Adani Energy Solutions Ltd Shareholders

Adani Energy Solutions Ltd Mutual Fund Holdings

Adani Energy Solutions Ltd ROCE Trend

Adani Energy Solutions Ltd EPS Trend

Adani Energy Solutions Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)11.108.909.022.942.30
Diluted EPS (Rs.)11.105.069.022.942.30
Cash EPS (Rs.)25.8924.2123.8117.1013.11
Book Value[Excl.RevalReserv]/Share (Rs.)114.3972.2965.4057.1242.14
Book Value[Incl.RevalReserv]/Share (Rs.)114.3972.2965.4057.1242.14
Revenue From Operations / Share (Rs.)119.16102.3690.25103.8066.42
PBDIT / Share (Rs.)45.4143.7340.7643.2127.44
PBIT / Share (Rs.)31.0030.7628.6832.5319.42
PBT / Share (Rs.)15.3515.4614.7310.067.64
Net Profit / Share (Rs.)11.4811.2411.736.425.08
NP After MI And SOA / Share (Rs.)11.2610.9511.136.745.08
PBDIT Margin (%)38.1042.7245.1641.6241.30
PBIT Margin (%)26.0130.0531.7731.3429.23
PBT Margin (%)12.8715.1016.319.6911.50
Net Profit Margin (%)9.6310.9712.996.187.65
NP After MI And SOA Margin (%)9.4510.7012.336.497.65
Return on Networth / Equity (%)10.7717.5620.1014.2112.06
Return on Capital Employeed (%)7.378.148.6310.578.22
Return On Assets (%)2.322.532.831.861.71
Long Term Debt / Equity (X)2.694.053.914.273.52
Total Debt / Equity (X)2.934.354.234.513.87
Asset Turnover Ratio (%)0.020.020.020.030.05
Current Ratio (X)1.270.950.741.480.73
Quick Ratio (X)1.250.900.711.380.68
Interest Coverage Ratio (X)1.822.032.122.122.17
Interest Coverage Ratio (Post Tax) (X)1.091.251.331.421.33
Enterprise Value (Cr.)144907.00290323.62125490.1943049.6641200.19
EV / Net Operating Revenue (X)10.9025.7912.643.775.64
EV / EBITDA (X)28.6160.3627.999.0613.65
MarketCap / Net Operating Revenue (X)8.3723.1810.061.823.28
Price / BV (X)9.5438.0516.413.985.17
Price / Net Operating Revenue (X)8.3723.1810.061.823.28
EarningsYield0.010.000.010.030.02

Adani Energy Solutions Ltd Profitability Ratios (%)

Adani Energy Solutions Ltd Liquidity Ratios

Adani Energy Solutions Ltd Liquidity Ratios (%)

Adani Energy Solutions Ltd Interest Coverage Ratios (X)

Adani Energy Solutions Ltd Valuation Ratios

Fair Value

Fair Value: ₹1,329.33

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: 21.62% compared to the current price ₹1093

Intrinsic Value: ₹1,450.91

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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 32.75% compared to the current price ₹1093

Last 5 Year EPS CAGR: 9.15%

*Investments are subject to market risks

Strength and Weakness of Adani Energy Solutions Ltd

StrengthWeakness
  1. The stock has a low average Working Capital Days of -10.50, 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 9.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 25.80, which may not be favorable.
  3. The company has higher borrowings (19,033.64) compared to reserves (5,515.64), which may suggest financial risk.

Should I Buy Adani Energy Solutions Ltd Share Now?

  • 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: 9.63%
      • 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: 7.37% (Industry Average ROCE: 14.94%)
      • 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%: 10.77% (Industry Average ROE: 13.21%)
      • 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): 1.09
      • 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: 1.25
      • 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: 105 (Industry average Stock P/E: 86.18)
      • 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:

FAQ

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

The latest fair value of Adani Energy Solutions Ltd is ₹1329.33.

What is the Market Cap of Adani Energy Solutions Ltd?

The Market Cap of Adani Energy Solutions Ltd is 1,21,935 Cr..

What is the current Stock Price of Adani Energy Solutions Ltd as on 30 May 2024?

The current stock price of Adani Energy Solutions Ltd as on 30 May 2024 is ₹1,093.

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 1,250/686.

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

The Stock P/E of Adani Energy Solutions Ltd is 105.

What is the Book Value of Adani Energy Solutions Ltd?

The Book Value of Adani Energy Solutions Ltd is 107.

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 10.2 %.

What is the ROE of Adani Energy Solutions Ltd?

The ROE of Adani Energy Solutions Ltd is 11.6 %.

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