energy

Adani Green Energy

ADANIGREEN · Nifty 50

1,465.8

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 153.8 (62%ile of 5Y range 60-188). Trading near median.
Sector Positionenergy sector. Flow: outflow. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score70/100 (STRONG). 2 positive flags, 5 concerns.
Historical Context148 similar technical setups. Average outcome: -16.8% decline. 0% positive.
Revenue TrendRevenue growing at 14.3% YoY. Moderate revenue growth — 14.3% YoY

Fundamental

70/100

STRONG

Trust

95/100

Verification

Coverage

89/100

HIGH

Quick Take

Adani Green Energy scores 70/100 on fundamentals (strong). Adani Green Energy: PE above historical average. BROAD EXPANSION regime.

Fundamental Score: 70/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 6.5% broken into three drivers. Each shows how efficiently the company generates returns.

ROE6.5%=
10.0%Net Margin
×
0.1xTurnover
×
7.2xLeverage

ROE of 6.51% is modest leverage-driven and stable. Net margin of 10.0% × asset turnover of 0.09x × leverage of 7.2x. High leverage amplifies returns but increases risk.

What This Means

Net margin of 10.0% means the company keeps ₹10.0 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.09x means the company generates ₹0.09 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 7.2x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

92.1%

Operating

61.0%

Net

10.0%

improving

Gross margin 92.1% → operating margin 61.0% → net margin 10.0%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 7.8x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

STRETCHED

Interest covered only 1.3x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 9.1x is high — monitor leverage.

Free Cash Flow

STRONG

FCF margin negative at -122.8% — spending more than earning. Check capex cycle.

Peer Comparison

Adani Green Energy is compared against 10 peers in the energy sector.

Key Watchpoints

🟢

Breaks above ₹1539 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹1393 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 152.4

Valuation normalization

🟢

Energy sector entering leadership

Sector rotation signal

Detected Patterns

✅ High Earnings Quality: Cash flow covers earnings 7.8x — strong cash conversion

Risk Flags

🔴 2 Critical⚠️ 3 Warning2 Positive7 total flags
🔴Unusual items are 138% of net income
Earnings Quality

One-off items significantly inflating reported profit. Core earnings may be much lower.

🔴Cash covers only 9% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Special charges present in income statement
Earnings Quality

Special charges of ₹282K Cr. May indicate restructuring, impairment, or one-time costs.

⚠️Board risk elevated: 9/10
Governance

Governance structure concerns. Independent director representation may be weak.

⚠️Price/Sales: 19.1x — expensive on revenue basis
Valuation

High revenue multiple. Market pricing in significant growth or margins expansion.

Assets relatively new (9% depreciated)
Balance Sheet

Modern asset base. Lower near-term capex requirements.

High promoter holding: 82%
Governance

Strong insider alignment. Promoters have significant skin in the game.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
153.8HIGH
P/B Ratio
12.7HIGH
ROE
7.6%HIGH
Market Cap
₹24472096.6L CrHIGH
From 52W High
95% of high
Promoter Holding
82.3%MODERATE
Institutional
9.8%
Sector Peers
10