Adani Green Energy Analysis

dividend

Pros

Cons

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

health

Pros

Cons

• Adani Green Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
• Adani Green Energy has less than a year of cash runway if free cash flow continues to grow at historical rates of 19.5% each year.
• Adani Green Energy has less than a year of cash runway based on current free cash flow.
• Debt is not well covered by operating cash flow (13.6%, less than 20% of total debt).
• Debt is not covered by short term assets, assets are 0.2x debt.
• Adani Green Energy's long term commitments exceed its cash and other short term assets.
• Adani Green Energy is making a loss, therefore interest payments are not well covered by earnings.
• Adani Green Energy's level of debt (627.1%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• Jayant's remuneration is lower than average for companies of similar size in India.

Cons

• The average tenure for the Adani Green Energy board of directors is less than 3 years, this suggests a new board.
• Jayant's compensation has increased whilst company is loss making.

misc

Pros

Cons

• Adani Green Energy is not covered by any analysts.
• Adani Green Energy has significant price volatility in the past 3 months.

past

Pros

Cons

• Unable to compare Adani Green Energy's 1-year earnings growth to the 5-year average as it is not currently profitable.
• Adani Green Energy does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
• Adani Green Energy used its assets less efficiently than the IN Renewable Energy industry average last year based on Return on Assets.
• It is difficult to establish if Adani Green Energy improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
• It is difficult to establish if Adani Green Energy has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
• Unable to compare Adani Green Energy's 1-year growth to the IN Renewable Energy industry average as it is not currently profitable.

value

Pros

• 541450 outperformed the Renewable Energy industry which returned -4.4% over the past year.
• 541450 outperformed the Market in India which returned -14.5% over the past year.
• BSE:541450 is up 57.9% outperforming the Renewable Energy industry which returned 13% over the past month.
• BSE:541450 is up 57.9% outperforming the market in India which returned 8% over the past month.

Cons

• Adani Green Energy is overvalued based on assets compared to the IN Renewable Energy industry average.
• Adani Green Energy is loss making, we can't compare its value to the IN Renewable Energy industry average.
• Adani Green Energy is loss making, we can't compare the value of its earnings to the India market.