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Adani Energy Solutions Ltd

NSE: ADANIENSOL BSE: 539254

1015.45

(-1.96%)

Thu, 19 Feb 2026, 05:16 pm

Adani Energy Solutions Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be thoroughly covered by earnings (10.4x coverage).
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Cons

  • Unable to evaluate Adani Transmission's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Adani Transmission's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

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Pros

  • Adani Transmission's earnings are expected to grow significantly at over 20% yearly.
  • Adani Transmission's earnings growth is expected to exceed the India market average.
  • Adani Transmission's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Adani Transmission's earnings are expected to exceed the low risk growth rate next year.
  • Adani Transmission's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Adani Transmission's net income is expected to increase by more than 50% in 2 years time.
  • Performance (ROE) is expected to be above the current IN Electric Utilities industry average.
  • An improvement in Adani Transmission's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Adani Transmission is expected to decrease over the next 2 years.
  • Adani Transmission is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Adani Transmission's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Adani Transmission's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
  • Adani Transmission's revenue growth is positive but not above the India market average.

health

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Pros

  • Adani Transmission is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Adani Transmission is profitable, therefore cash runway is not a concern.
  • Adani Transmission is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (22.4%, greater than 20% of total debt).
  • The level of debt compared to net worth has been reduced over the past 5 years (885.9% vs 253.6% today).
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Cons

  • Debt is not covered by short term assets, assets are 0.3x debt.
  • Adani Transmission's long term commitments exceed its cash and other short term assets.
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
  • Adani Transmission's level of debt (253.6%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Adani Transmission board of directors is about average.
  • Anil's remuneration is about average for companies of similar size in India.
  • Anil's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Adani Transmission management team is about average.
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Cons

    past

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    Pros

    • Adani Transmission's 1-year earnings growth exceeds its 5-year average (41.2% vs 11.7%)
    • Adani Transmission's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
    • Adani Transmission's earnings growth has exceeded the IN Electric Utilities industry average in the past year (41.2% vs 16.2%).
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    Cons

    • Adani Transmission used its assets less efficiently than the IN Electric Utilities industry average last year based on Return on Assets.
    • Adani Transmission's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Adani Transmission has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • 539254 outperformed the Electric Utilities industry which returned -13.9% over the past year.
    • 539254 outperformed the Market in India which returned -14.5% over the past year.
    • BSE:539254 is up 8.4% outperforming the Electric Utilities industry which returned 5.5% over the past month.
    • BSE:539254 is up 8.4% along with the India market (8%) over the past month.
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    Cons

    • Adani Transmission's share price is below the future cash flow value, but not at a moderate discount (< 20%).
    • Adani Transmission's share price is below the future cash flow value, but not at a substantial discount (< 40%).
    • Adani Transmission is overvalued based on assets compared to the IN Electric Utilities industry average.
    • Adani Transmission is poor value based on expected growth next year.
    • Adani Transmission is overvalued based on earnings compared to the IN Electric Utilities industry average.
    • Adani Transmission is overvalued based on earnings compared to the India market.

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