Adani Green Energy Ltd’s fundamental analysis highlights essential financial metrics, including a total market capitalization of ₹1,66,957 crore, a debt-to-equity ratio of 6.38, and a return on equity (ROE) of 14.7%. These numbers offer valuable insight into the company’s financial stability and overall market valuation.
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Overview of the Renewable Energy Sector
The renewable energy sector is rapidly growing, driven by the need for sustainable energy sources. It includes solar, wind, hydroelectric, and geothermal power, offering cleaner alternatives to fossil fuels, which help reduce carbon emissions and promote environmental responsibility.
Governments and businesses are increasingly investing in renewable energy technologies, offering incentives and subsidies to accelerate the shift towards cleaner energy solutions. As demand for green energy rises, the sector continues to evolve, creating job opportunities and contributing to global efforts to combat climate change.
Financial Analysis of Adani Green Energy
| FY 24 | FY 23 | FY 22 | FY 21 | |
| Sales | 9,220 | 7,792 | 5,133 | 3,124 |
| Expenses | 1,923 | 2,861 | 1,623 | 889 |
| Operating Profit | 7,297 | 4,931 | 3,510 | 2,235 |
| OPM % | 69.76 | 57.12 | 62.94 | 62.1 |
| Other Income | 994 | 647 | 508 | 391 |
| EBITDA | 8,537 | 5,772 | 3,954 | 2,710 |
| Interest | 5,006 | 2,911 | 2,617 | 1,953 |
| Depreciation | 1,903 | 1,300 | 849 | 486 |
| Profit Before Tax | 1,382 | 1,367 | 552 | 187 |
| Tax % | 29.74 | 33.14 | 11.59 | 5.88 |
| Net Profit | 1,260 | 973 | 489 | 182 |
| EPS | 6.94 | 6.15 | 3.13 | 1.34 |
| Dividend Payout % | 0 | 0 | 0 | 0 |
* Consolidated Figures in Rs. Crores
Adani Green Energy Company Metrics
Adani Green Energy Ltd’s financial metrics highlight significant growth: In FY24, sales surged to ₹9,220 crore, up from ₹7,792 crore in FY23 and ₹5,133 crore in FY22. Operating profit reached ₹7,297 crore, underscoring strong operational performance and expanding margins.
Sales Growth: Sales rose by 18.33% to ₹9,220 crore in FY24, compared to ₹7,792 crore in FY23. FY23 had shown an impressive 51.81% increase from ₹5,133 crore in FY22, reflecting consistent expansion in energy capacity and demand.
Expense Trends: Expenses decreased to ₹1,923 crore in FY24, a 32.78% drop from ₹2,861 crore in FY23. FY23 expenses grew by 76.22% from ₹1,623 crore in FY22, indicating improved cost management in the latest fiscal year.
Operating Profit & Margins: Operating profit climbed to ₹7,297 crore in FY24, a substantial 47.94% increase over ₹4,931 crore in FY23. OPM improved to 69.76% in FY24 from 57.12% in FY23, showcasing higher efficiency and robust profitability.
Profitability Indicators: Net profit grew to ₹1,260 crore in FY24, a 29.51% rise from ₹973 crore in FY23. FY22 net profit was ₹489 crore. Earnings per share (EPS) increased to ₹6.94 in FY24 from ₹6.15 in FY23, reflecting enhanced shareholder returns.
Taxation & Dividend: The tax rate was reduced slightly to 29.74% in FY24 from 33.14% in FY23. FY22 had a lower tax rate of 11.59%. Dividend payout remained at 0% across FY24, FY23, and FY22, aligning with the company’s reinvestment strategy.
Key Financial Metrics: EBITDA increased to ₹8,537 crore in FY24, up from ₹5,772 crore in FY23 and ₹3,954 crore in FY22. Interest expenses surged to ₹5,006 crore in FY24, while depreciation rose to ₹1,903 crore, reflecting the continued expansion of renewable energy assets.
Adani Green Energy Stock Performance
Adani Green Energy has demonstrated strong stock performance with a 34.0% return over the past year. Over the last three years, it achieved a 7.02% return, while the five-year return stands at 44.6%, reflecting robust long-term growth in the renewable energy sector.
| Duration | Return |
| 1 year | 34.0 % |
| 3 years | 7.02 % |
| 5 years | 44.6 % |
Adani Green Energy Shareholding Pattern
The shareholding pattern of Adani Green Energy reveals a dominant promoter stake of 56.37% in March 2024, a slight decrease from previous years. FIIs hold 18.15%, while public shareholding remains at 23.93%. The number of shareholders has grown, reaching 6,68,586 in March 2024.
| Metrics | Mar 2022 | Mar 2023 | Mar 2024 | Sep 2024 |
| Promoters | 61.27% | 57.26% | 56.37% | 60.93% |
| FIIs | 16.53% | 17.13% | 18.15% | 15.16% |
| DIIs | 0.79% | 1.45% | 1.55% | 1.45% |
| Public | 21.41% | 24.16% | 23.93% | 22.45% |
| No. of Shareholders | 2,28,469 | 7,46,294 | 6,68,586 | 6,28,425 |
Adani Green Energy Partnerships and Acquisitions
Adani Green Energy has formed strategic partnerships with global energy giants, focusing on scaling up renewable energy production. These collaborations involve joint ventures to build large-scale solar and wind farms across India, leveraging advanced technology and financial strength for rapid expansion.
The company’s acquisition strategy targets key assets in renewable energy. In 2022, Adani Green Energy acquired a significant portfolio of solar and wind assets, reinforcing its position as a major player in the sector. This strategic move enhances its renewable capacity and drives further market penetration.
Adani Green Energy has also entered into agreements for infrastructure development, including collaboration with international companies to deploy green hydrogen technology. These partnerships are critical for the company’s commitment to decarbonization, offering diversified growth opportunities in clean energy.
Adani Green Energy Peer comparison
Adani Green Energy, with a market cap of ₹1,66,957 Cr, has a high P/E ratio of 129.51, indicating investor optimism. In comparison, competitors like NTPC, Tata Power, and Adani Power have lower P/E and return figures, reflecting varying growth prospects and stability in the renewable sector.
| Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | ROCE % | 6mth return % | 1Yr return % | Div Yld % |
| NTPC | 335 | 324838.32 | 14.72 | 13.62 | 10.47 | -9.56 | 7.67 | 2.31 |
| Power Grid Corpn | 309.4 | 287760.68 | 18.32 | 19 | 13.21 | -6.47 | 30.44 | 3.64 |
| Adani Power | 506.75 | 195450.38 | 15.41 | 57.06 | 32.25 | -28.69 | -3.5 | 0 |
| Adani Green | 1054 | 166957.02 | 129.51 | 14.74 | 9.65 | -40.59 | -34 | 0 |
| Tata Power Co. | 399 | 127494.05 | 33.58 | 11.28 | 11.13 | -7.8 | 20.13 | 0.5 |
| JSW Energy | 625.8 | 109375.35 | 56.04 | 8.4 | 8.59 | -14.33 | 52.99 | 0.32 |
Future of Adani Green Energy
Adani Green Energy aims to solidify its position as a renewable energy leader by expanding its capacity, especially in solar and wind power. With India’s increasing focus on clean energy, the company is poised to benefit from government policies promoting green power development.
Leveraging its robust infrastructure and expanding international presence, Adani Green Energy is well-positioned to capture growth in emerging renewable markets. The company plans to diversify its portfolio and tap into sectors like hydrogen and battery storage, adding to its long-term growth prospects.
Despite recent volatility, Adani Green Energy’s commitment to sustainability and its growing project pipeline suggests strong future performance. As the global push for renewable energy intensifies, Adani Green Energy stands to benefit significantly from rising energy demand and green initiatives.
How To Invest In Adani Green Energy Share?
To invest in Adani Green Energy shares, begin by opening a Demat and trading account with a trusted stockbroker such as Alice Blue. This account allows you to securely buy and hold shares electronically.
- Research the Stock: Analyze Adani Green Energy’s financials, market trends, and growth prospects to understand its potential risks and rewards before investing.
- Choose a Reliable Stockbroker: Select a trusted broker like Alice Blue for its user-friendly platform and competitive fees, then register to access the stock market.
- Fund Your Trading Account: Deposit funds into your trading account, ensuring enough balance to cover share purchases and additional fees.
- Place a Buy Order: Search for Adani Green Energy on your broker’s platform and place a buy order with a specified quantity and price (market or limit order).
- Monitor Your Investment: Track your investment’s performance regularly and stay updated on news or developments that could impact your decision to hold or sell.
- Brokerage Tariffs: Please note that Alice Blue’s updated brokerage tariff is now Rs. 20 per order, which will apply to all trades.
Adani Green Energy – FAQs
Adani Green Energy has a market cap of ₹1,66,957 crore, positioning it as one of the key players in India’s renewable energy sector. This market capitalization reflects its strong market presence and growth potential in the clean energy space.
Adani Green Energy is a significant competitor in India’s renewable energy sector, particularly in solar and wind power. While it isn’t the sole leader, its expansive portfolio and rapid growth position it as a top player in the industry.
Adani Green Energy acquired SB Energy India in 2021 for $3.5 billion, adding 5 GW renewable capacity. It also acquired three SPVs from Inox Green Energy, contributing 150 MW of operational wind power projects to its portfolio.
Adani Green Energy focuses on developing and operating renewable energy projects, including solar, wind, and hybrid power plants. The company aims to provide sustainable energy solutions and support India’s commitment to reducing carbon emissions and reliance on fossil fuels.
Adani Green Energy is part of the Adani Group, a multinational conglomerate led by billionaire Gautam Adani. The company plays a key role in the group’s vision to lead India’s transition to renewable and sustainable energy sources.
The main shareholders of Adani Green Energy include the Adani Group (Promoters holding 56.37%), FIIs with 18.15%, and public shareholders with around 23.93%. The number of shareholders has grown significantly over the years.
Adani Green Energy operates in the renewable energy sector, focusing on solar, wind, and hybrid power generation. The company is part of the global shift towards clean, sustainable energy to combat climate change and reduce carbon emissions.
Adani Green Energy has experienced strong growth in its order book, driven by increased demand for clean energy projects and government initiatives. The company’s large-scale projects and continued capacity expansion further strengthen its order book prospects.
To invest in Adani Green Energy shares, open a Demat and trading account with a reliable broker like Alice Blue. Fund your account, research the stock, and place a buy order through the broker’s platform. Regularly monitor your investment to track performance and make informed decisions based on market trends.
With a stock P/E of 130, Adani Green Energy may be seen as trading at a premium. Investors should compare this ratio with industry peers, assess its future earnings growth, and consider the high growth potential of the renewable energy sector.
The future of Adani Green Energy is promising, with the company expanding its renewable energy portfolio, including solar, wind, and green hydrogen projects. Its strategic focus on clean energy and large-scale investments in infrastructure will drive continued growth and market leadership.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
