{"id":21778,"date":"2023-07-24T05:36:04","date_gmt":"2023-07-24T05:36:04","guid":{"rendered":"https:\/\/blog.researchandranking.com\/?p=21778"},"modified":"2023-07-26T10:31:44","modified_gmt":"2023-07-26T10:31:44","slug":"adani-green-share-price-fundamentals","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/adani-green-share-price-fundamentals\/","title":{"rendered":"Adani Green Share Price Analysis: All You Need To Know"},"content":{"rendered":"
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Introduction<\/h2>\n\n\n\n

India has set a very ambitious target of meeting 50% of its energy requirements through renewables and reducing cumulative emissions by one billion tonnes by 2030. However, as of February 2023, renewable energy<\/a> only constituted 12.3% of India\u2019s overall energy mix, opening up massive opportunities for companies operating in the renewable sector.<\/p>\n\n\n\n

This article delves into Adani Green Energy Limited, one of India’s prominent players in the renewable energy sector, examining its potential for future growth. Let’s explore this further.<\/p>\n\n\n\n

<\/a>Overview of Adani Green<\/h3>\n\n\n\n

Adani Green Energy Limited (AGEL) was incorporated in the year 2016 and currently has over 8024 MW operational renewable portfolio. In its initial days, the company began with a 20MW capacity wind power in partnership with Inox Wind. In 2017, AGEL brought all the solar energy portfolio under Adani Enterprise and listed itself on the stock exchanges.<\/p>\n\n\n\n

In the following years, Adani Green made a series of acquisitions to expand its renewable portfolio and become a substantial player in India\u2019s renewable energy story.<\/p>\n\n\n\n

Some notable acquisitions AGEL made are Essel Group\u2019s solar power portfolio in mid-2019, Inox Wind\u2019s 50 MW wind power project at Dayapur, Kutch, and Softbank Group-backed SB Energy Holdings Limited in May 2021. In January 2021, French energy giant Total Energies acquired 20% minority interest in Adani Green for about $2 billion.<\/p>\n\n\n\n

Adani Green Company Analysis<\/h3>\n\n\n\n

Adani Green is India\u2019s leading renewable energy company engaged in developing, owning, and maintaining solar and wind power plants. Currently, the company has 8,024 MW of operational renewable portfolio in India, of which 4,913 MW is solar, 971 MW is wind, and 2140 MW is hybrid operational capacity spread across 12 states.<\/p>\n\n\n\n

The solar portfolio has 24.7% CUF (Capacity Utilization Factor), while the wind energy portfolio has 25.2% CUF. And the hybrid portfolio achieved 35.5% CUF in FY23. Its 2,140 MW wind-solar hybrid power plant in Rajasthan is the world\u2019s largest renewable energy park, entirely executed by Adani Green.<\/p>\n\n\n\n

The company has secured its entire renewable portfolio with long-term power purchase agreements (PPAs) with an average portfolio tariff of \u20b92.98 per unit. 89% of AGEL\u2019s current portfolio has PPAs with sovereign counterparties such as NTPC, SECI, NHPC<\/a>, and State DISCOMs, helping it to have a predictable cash flow.<\/p>\n\n\n\n

In the solar segment, the plant availability averaged above 99% in FY23. While in the wind segment, it was 94.3%.<\/p>\n\n\n\n

<\/a>Projects Under Execution<\/h3>\n\n\n\n

Adani Green has a locked-in portfolio of 12,348 MW, with 1,889 MW nearing completion and 10,449 MW in various stages of development and approvals. In the medium term, the company’s total locked-in growth is 20.4 GW.<\/p>\n\n\n\n

The company plans to have a total installed capacity of 45 GW, around 10% of India\u2019s renewable energy target by 2030. To fuel the growth, the company has identified about 2 lakh acres of land in strategic locations in Rajasthan and Gujarat, predominantly owned by the government.<\/p>\n\n\n\n

Shareholding Pattern<\/h3>\n\n\n\n
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Source: AGEL annual report FY23<\/em><\/figcaption><\/figure>\n\n\n\n

Key Management Personnel<\/h3>\n\n\n\n

Mr. Amit Singh<\/strong> is the Chief Executive Officer and was appointed on 11th May 2023. He is an IIT Delhi graduate with over 22 years of experience in the oilfield, energy transition, and digital transition in the energy sector, working in multiple geographies, including middle-east and Europe. Mr. Singh joined AGEL from Schlumberger, based in London.<\/p>\n\n\n\n

Mr. Vineet S. Jaain<\/strong> is the Managing Director at AGEL and was previously the CEO. He has been associated with the Adani Group for more than 15 years. Under his able leadership and deep technical understanding of the sector, the group executed the world\u2019s largest solar plant of that time at Kamuthi and India\u2019s largest solar module manufacturing facility. Mr. Jaain joined the Adani Group as Joint President of Adani Power in 2006 from Jindal Steel & Power Ltd.<\/p>\n\n\n\n

Mr. Sagar R. Adani<\/strong> is the Executive Director, leading the group\u2019s foray into renewable energy and has been associated with the company since its inception. He holds a degree in Economics from Brown University, USA.<\/p>\n\n\n\n

Mr. Phuntsok Wangyal<\/strong> is the Chief Financial Officer and joined AGEL in September 2022 from Engie India. He has substantial experience in the renewable sector and is skilled in mergers and acquisitions, financial structuring, corporate finance, and valuations. Mr. Wangyal specialized in the finance stream from IIM Bangalore and is an alumnus of St. Joseph\u2019s Academy, Dehradun.<\/p>\n\n\n\n

<\/a>Adani Green Financials<\/h2>\n\n\n\n

<\/a>Revenue<\/h3>\n\n\n\n

In FY23, Adani Green recorded a 54% growth in revenue from power supply to \u20b95,825 crores compared to \u20b93,783 crores. The company reports all its revenue under a single business segment, and the group\u2019s revenue is from domestic sales.<\/p>\n\n\n\n

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EBITDA<\/h3>\n\n\n\n

The company recorded 56.88% growth in EBITDA during FY23 at \u20b95,538 crores, compared to \u20b93,530 crores in FY22.<\/p>\n\n\n\n

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The company consistently records an EBITDA margin of more than 90% in the last three financial years.<\/p>\n\n\n\n

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<\/a> <\/h3>\n\n\n\n

Net Profit<\/h3>\n\n\n\n

In FY23, Adani Green recorded a 99% growth in net profit at \u20b9973 crores, up from \u20b9489 crores in FY22. The company incurs significant expenses toward interest payments, which results in reduced net earnings. During FY23, AGEL expended \u20b92,911 crores on interest payments on loans.<\/p>\n\n\n\n

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<\/a>Adani Green Ratio Analysis<\/h3>\n\n\n\n

Current Ratio<\/strong>: At the end of 31 March 2023, Adani Green reported an 18% decline in the current ratio to 0.68 times from 0.83 times in FY22.<\/p>\n\n\n\n

Debt-to-equity Ratio: <\/strong>Adani Green’s debt-to-equity ratio improved to 1.96 times in FY23 from 5.13 times in FY22. The decline is due to an increase in shareholder\u2019s equity because of equity share issuance.<\/p>\n\n\n\n

Debt service coverage ratio: <\/strong>During the year, the debt service coverage ratio declined to 1.52 times from 1.67 times in FY22.<\/p>\n\n\n\n

Return on Capital Employed (ROCE<\/a>): <\/strong>Adani Green\u2019s ROCE declined to 3.74% in FY23 from 4.34% in FY22.<\/p>\n\n\n\n

Adani Green Share Price History<\/h3>\n\n\n\n

Adani Green shares were listed on BSE<\/a> and NSE<\/a> on 18th June 2018 after its successful IPO, which was oversubscribed by 5.98 times. However, the stock debuted at \u20b930, against its IPO price band of \u20b9100-125.<\/p>\n\n\n\n

Despite losing at debut, Adani Green share price made a remarkable turnaround and has given a CAGR<\/a> return of 99% in the last five years. The company has not paid dividends to shareholders or had any bonus issues after listing.<\/p>\n\n\n\n

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Source: TradingView<\/figcaption><\/figure>\n\n\n\n

Despite the recent crash in Adani Green share price after the Hindenburg saga, it is one of the best-performing stocks in the market. The stock was trading around the \u20b930 level in July 2018 and made an all-time high level of \u20b93,050 on 19th April 2022, 100X in less than five years. <\/p>\n\n\n\n

As of 14th July 2023, Adani Green has a market capitalization of \u20b91,52,891 crores.<\/p>\n\n\n\n

<\/a>Adani Green Future Growth Potential<\/h2>\n\n\n\n

A SWOT analysis to better understand the Adani Green share price future growth potential.<\/p>\n\n\n\n

<\/a>Strengths<\/h3>\n\n\n\n