Adani Green Energy Ltd.
ISIN: INE364U01010 • Market Cap: ₹2.12 Lakh Cr
The 5-Pillar Quality Audit for Adani Green Energy Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (86.4%), Return on Capital Employed (8.3%), and equity compounding (8.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 5.24 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (13.7%) and 3Y PAT CAGR (17.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 119.11 vs PEG of 3.61 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 62.4%, backed by 16.7% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Large Cap)
Established player in the Power sector with an overall fundamental quality score of 56/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 8.3%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Elevated Financial Gearing (D/E: 5.24)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Priced for Perfection (P/E: 119.11)
A steep valuation multiple of 119.11 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking ADANIGREEN 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 56/100 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 ADANIGREEN directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Adani Green Energy Ltd. (ADANIGREEN)Current | 56/100 | ₹2.12 Lakh Cr | 119.11 | 8.3% | 5.24 | — |
| 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 Energy Solutions Ltd. (ADANIENSOL) | 66/100 | ₹1.88 Lakh Cr | 64.52 | 8.7% | 2.02 | View |
| Tata Power Co. Ltd. (TATAPOWER) | 55/100 | ₹1.21 Lakh Cr | 31.28 | 7.4% | 1.81 | View |
Frequently Asked Questions: Adani Green Energy Ltd.
Q:What is the 5-Pillar Fundamental Score for Adani Green Energy Ltd. (ADANIGREEN)?
Adani Green Energy Ltd. has a RupeeTools Fundamental Score of 56/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (67/100), Financial Health (39/100), Growth (70/100), Valuation (25/100), and Ownership Quality (78/100).
Q:Is ADANIGREEN fundamentally strong for long-term investment?
ADANIGREEN currently holds a moderate quality rating of 56/100. While it operates in the Power sector, investors should monitor its debt health before initiating long-term positions.
Q:Does ADANIGREEN pass the Coffee Can Investing filter?
No. ADANIGREEN does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does ADANIGREEN compare against other Power peers?
Within India's Power sector, ADANIGREEN trades at a P/E of 119.11 and generates an ROCE of 8.3%. Compare its 5-Pillar score of 56/100 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.