Adani Energy Solutions Ltd.
ISIN: INE931S01010 • Market Cap: ₹1.88 Lakh Cr
The 5-Pillar Quality Audit for Adani Energy Solutions Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (30.2%), Return on Capital Employed (8.7%), and equity compounding (9.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 2.02 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (22.4%) and 3Y PAT CAGR (39.5%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 64.52 vs PEG of 1.84 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.7%, backed by 21.9% institutional ownership.
Key Fundamental Strengths
Strong Topline Expansion (3Y Sales CAGR: 22.4%)
Revenue has expanded at 22.4% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 39.5%)
Net earnings have compounded at 39.5% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 8.7%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 2.02)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Quantitative Strategy Eligibility
Checking ADANIENSOL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 66/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Power Sector Peer Comparison
Compare ADANIENSOL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Adani Energy Solutions Ltd. (ADANIENSOL)Current | 66/100 | ₹1.88 Lakh Cr | 64.52 | 8.7% | 2.02 | — |
| Adani Power Ltd. (ADANIPOWER) | 70/100 | ₹3.93 Lakh Cr | 27.56 | 15.7% | 0.82 | View |
| NTPC Ltd. (NTPC) | 69/100 | ₹3.25 Lakh Cr | 11.69 | 8.3% | 1.32 | View |
| Power Grid Corporation of India Ltd. (POWERGRID) | 64/100 | ₹2.44 Lakh Cr | 15.36 | 10.6% | 1.47 | View |
| Adani Green Energy Ltd. (ADANIGREEN) | 56/100 | ₹2.12 Lakh Cr | 119.11 | 8.3% | 5.24 | View |
| Tata Power Co. Ltd. (TATAPOWER) | 55/100 | ₹1.21 Lakh Cr | 31.28 | 7.4% | 1.81 | View |
Frequently Asked Questions: Adani Energy Solutions Ltd.
Q:What is the 5-Pillar Fundamental Score for Adani Energy Solutions Ltd. (ADANIENSOL)?
Adani Energy Solutions Ltd. has a RupeeTools Fundamental Score of 66/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (67/100), Financial Health (47/100), Growth (92/100), Valuation (45/100), and Ownership Quality (82/100).
Q:Is ADANIENSOL fundamentally strong for long-term investment?
ADANIENSOL currently holds a moderate quality rating of 66/100. While it operates in the Power sector, investors should monitor its debt health before initiating long-term positions.
Q:Does ADANIENSOL pass the Coffee Can Investing filter?
No. ADANIENSOL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ADANIENSOL compare against other Power peers?
Within India's Power sector, ADANIENSOL trades at a P/E of 64.52 and generates an ROCE of 8.7%. Compare its 5-Pillar score of 66/100 against top sector peers like Adani Power Ltd. (70/100), NTPC Ltd. (69/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.