Why is Adani Energy Solutions Ltd ?
1
High Debt company with Weak Long Term Fundamental Strength
- High Debt Company with a Debt to Equity ratio (avg) at 2.34 times
- The company has been able to generate a Return on Capital Employed (avg) of 8.65% signifying low profitability per unit of total capital (equity and debt)
2
Negative results in Sep 25
- OPERATING CF(Y) Lowest at Rs -955.19 Cr
- PAT(Latest six months) At Rs 1,046.45 cr has Grown at -22.89%
- INVENTORY TURNOVER RATIO(HY) Lowest at 36.05 times
3
With ROCE of 11.3, it has a Very Expensive valuation with a 2.5 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 17.93%, its profits have risen by 10.4% ; the PEG ratio of the company is 5
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Adani Energy Sol for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Adani Energy Sol
18.32%
0.49
36.28%
Sensex
4.66%
0.39
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
19.38%
EBIT Growth (5y)
18.39%
EBIT to Interest (avg)
1.50
Debt to EBITDA (avg)
6.52
Net Debt to Equity (avg)
1.68
Sales to Capital Employed (avg)
0.31
Tax Ratio
17.09%
Dividend Payout Ratio
0
Pledged Shares
0.79%
Institutional Holding
23.02%
ROCE (avg)
8.57%
ROE (avg)
10.54%
Valuation Key Factors 
Factor
Value
P/E Ratio
52
Industry P/E
21
Price to Book Value
4.99
EV to EBIT
22.02
EV to EBITDA
17.37
EV to Capital Employed
2.49
EV to Sales
6.09
PEG Ratio
4.99
Dividend Yield
NA
ROCE (Latest)
11.31%
ROE (Latest)
9.64%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
4What is working for the Company
NET SALES(9M)
At Rs 19,789.69 cr has Grown at 21.64%
PBT LESS OI(Q)
At Rs 574.35 cr has Grown at 37.36%
-12What is not working for the Company
OPERATING CF(Y)
Lowest at Rs -955.19 Cr
PAT(Latest six months)
At Rs 1,046.45 cr has Grown at -22.89%
INVENTORY TURNOVER RATIO(HY)
Lowest at 36.05 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.16 times
Loading Valuation Snapshot...
Here's what is working for Adani Energy Sol
Net Sales - Nine Monthly
At Rs 19,789.69 cr has Grown at 21.64%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 574.35 cr has Grown at 37.36%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Adani Energy Sol
Profit After Tax (PAT) - Quarterly
At Rs 533.97 cr has Fallen at -20.9%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Cash Flow - Annually
Lowest at Rs -955.19 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Inventory Turnover Ratio- Half Yearly
Lowest at 36.05 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 4.16 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






