Mehabe score: 5 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Adani Green Energy is a holding company of several subsidiaries carrying business of renewable power generation within the Group. The Company is primarily involved in renewable power generation and other ancillary activities.Site:ADANIGREENMain Symbol:ADANIGREEN
Stock trades at 1206.0, above its 50dma 1083.7. It also trades above its 200dma 1012.62. The stock remains bullish on techicals
The 52 week high is at 1394.00 and the 52week low is at 660.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– Promoter holding has increased by 2.67% over last quarter.
Weakness
– Stock is trading at 219.09 times its book value
– has low interest coverage ratio.
-Tax rate seems low
– has a low return on equity of -8.07% for last 3 years.
-Promoter holding has decreased over last 3 years: -26.44%
Competition
– The industry trades at a mean P/E of 41.6x. Adani Green trades at the industry’s max P/E of 590.54x. ADANIGREEN trades at a P/E of 591.0x
– Industry’s mean G-Factor is 3.3 while the mean Piotski score is 9.0. ADANIGREEN has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 14.9%. The max 1- month return was given by Tata Power Co.: a return of 60.12 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 977.0 cr compared to Rs 778.0 cr for period ended Jun 2020, a rise of 25.6%
Operating Profits reported at Rs 754.0 cr for period ended Jun 2021 vis-vis 580.0 for period ended Jun 2020 .
Operating Margins expanded 262.5 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 1.4 compared to Rs 0.67 for previous quarter ended Mar 2021 and Rs 0.29 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 3324.0 cr for period ended TTM vis-vis sales of Rs 3124.0 cr for the period ended Mar 2021, a growth of 6.0%. The 3 year sales cagr stood at 17.3%.
Operating margins expanded to 75.0% for period ended TTM vis-vis 72.0% for period ended Mar 2021, expansion of 300.0 bps.
Net Profit reported at Rs 387.0 cr for period ended TTM vis-vis sales of Rs 210.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 26.0% compared to -8.0% over the last 3 Years. – The stock has given a return of 55% on a 1 Year basis vis-vis a return of 217% over the last 3 Years. – The compounded sales growth on a TTM bassis is 25% vis-vis a compounded sales growth of 28% over the last 3 Years. – The compounded profit growth on a TTM basis is 69% vis-vis a compounded profit growth of 54% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has fallen for the period ended Sep 2021. The Sep 2021 fii holding stood at 17.83% vis-vis 20.32% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 21.71% vis-vis 21.91% for Jun 2021
Conclusion
– Promoter holding has increased by 2.67% over last quarter. – Stock is trading at 219.09 times its book value
– has low interest coverage ratio.
-Tax rate seems low
– has a low return on equity of -8.07% for last 3 years.
-Promoter holding has decreased over last 3 years: -26.44%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 1083.7 and is trading at 1206.0, thus bullish price action wise.
