Analytical Prediction for Adani Energy Solutions (2024-2029)
1. Historical Performance and Growth Trends
- 1-Year Return: 32.75%
- 5-Year Return: 344.99%
- CAGR: 13.73%
Given the strong historical performance, we can extrapolate these growth rates to estimate future performance, while also considering potential market conditions and company-specific factors.
2. Financial Metrics
- PE Ratio: 98.19
- PB Ratio: 8.17
- Dividend Yield: 0.00%
- EPS (TTM): ₹10.20
The high PE and PB ratios suggest that the stock is currently overvalued, indicating high investor expectations for future growth. The absence of a dividend yield shows that the company is likely reinvesting profits for growth.
3. Market Cap and Sector Position
- Market Cap: ₹1,11,677 Cr
- Sectoral Market Cap Rank: 7
Adani Energy Solutions holds a significant position in the power sector, which suggests strong market confidence and potential for sustained growth.
4. Corporate Actions and Developments
- Recent Acquisitions: Acquired 100% equity of Fatehgarh-Bhadla Transmission Limited.
- Revenue Growth: Significant growth in revenue, reaching ₹17218.31 Cr in 2024.
These actions indicate aggressive expansion and a focus on strengthening the company’s infrastructure and market presence.
5. Cash Flow Analysis
| Particulars | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Net Cash from Operating Activities | -209.49 | -15.28 | 2.84 | -22.00 | -17.35 |
| Net Cash Used In Investing Activities | -2000.95 | -1665.02 | 239.69 | 190.69 | 1971.08 |
| Net Cash Used In Financing Activities | 2210.16 | 1680.79 | -248.40 | -961.45 | -1184.17 |
The company is heavily investing in growth, which is a positive sign for long-term prospects despite short-term negative cash flows.
Adani Energy Solutions Shares Price Target Financial Performance (2024-2029)
Adani Energy Solutions Shares Price Target: Revenue and Earnings
Assuming a conservative annual growth rate of 10% (lower than the historical CAGR of 13.73% to account for potential market fluctuations):
- 2024: ₹17218.31 Cr
- 2025: ₹18,940.14 Cr
- 2026: ₹20,834.15 Cr
- 2027: ₹22,917.57 Cr
- 2028: ₹25,209.33 Cr
- 2029: ₹27,730.26 Cr
Adani Energy Solutions Shares Price Target: Share Price
Assuming the PE ratio adjusts to a more sustainable level around 70 (considering market correction and reduced overvaluation):
- 2024: PE of 98.19 and EPS of ₹10.20 -> Share Price: ₹1,001.00
- 2029: Estimated EPS growth by 10% annually -> EPS: ₹16.49
Projected Share Price in 2029 = EPS * PE = ₹16.49 * 70 = ₹1,154.30
Key Factors Influencing the Prediction Of Adani Energy Solutions Shares Price Target
- Market Dynamics: Changes in the power sector, government policies, and economic conditions.
- Company Strategy: Continued aggressive expansion, innovation, and efficient management.
- Global Energy Trends: Shift towards renewable energy and sustainable practices.
- Regulatory Environment: Impact of regulations on energy production and distribution.
Risk Factors Of Adani Energy Solutions Shares Price Target
- Market Volatility: The stock’s high beta (1.62) indicates susceptibility to market fluctuations.
- Regulatory Risks: Potential changes in government policies affecting the power sector.
- Operational Risks: Execution of expansion plans and integration of new acquisitions.
Conclusion
Adani Energy Solutions is poised for continued growth over the next 5 years, driven by its strong market position, strategic investments, and historical performance. However, investors should remain cautious of the high valuation and market volatility. Monitoring sector trends and company developments will be crucial for making informed investment decisions.
Overview of Adani Energy Solutions Shares Price Target
Intraday Fact Check:
- Over the past 9 years, only 3.79% of trading sessions experienced intraday declines exceeding 5%.
Key Metrics: Adani Energy Solutions Shares Price Target
| Metric | Value |
|---|---|
| PE Ratio (x) | 98.19 |
| EPS – TTM (₹) | 10.20 |
| Market Cap (₹ Cr.) | 1,11,677 |
| Sectoral Market Cap Rank | 7 |
| PB Ratio (x) | 8.17 |
| Dividend Yield (%) | 0.00 |
| Face Value (₹) | 10.00 |
| Beta | 1.62 |
| VWAP (₹) | 1,004.48 |
| 52W High/Low (₹) | 1,250.00 / 686.00 |
Adani Energy Solutions Share Price Update
Recent Performance: Adani Energy Solutions Shares Price Target
| Timeframe | Change |
|---|---|
| 1 Day | -0.23% |
| 1 Week | -2.42% |
| 1 Month | -1.66% |
| 3 Months | -5.94% |
| 1 Year | 32.75% |
| 3 Years | 0.05% |
| 5 Years | 344.99% |
FAQs about Adani Energy Solutions Share:
| Question | Answer |
|---|---|
| What is Adani Energy Solutions share price and what are the returns? | The share price was ₹1,001.00 as of 11 Jul, 2024. It decreased by 0.23% from the previous share price of ₹1,003.45. Over the last month, the share price declined by 1.66%. |
| What is the PE & PB ratio of Adani Energy Solutions? | The PE ratio is 98.4, and the PB ratio is 8.17. |
| What has been the highest price of Adani Energy Solutions share in the last 52 weeks? | The 52-week high is ₹1,250.00, and the 52-week low is ₹686.00. |
| What is the CAGR of Adani Energy Solutions? | The CAGR is 13.73. |
| Who are the peers for Adani Energy Solutions in the Power sector? | A significant peer is Power Grid Corporation of India Ltd. |
| What is the market cap of Adani Energy Solutions? | The market cap is ₹1,11,678 Cr, ranking 7th in the sector. |
| What are the key metrics to analyze Adani Energy Solutions Share Price? | The PE is 98.20, and the Price to Book Ratio is 8.17. |
| What are the Adani Energy Solutions quarterly results? | For the year ending 31 Mar 2024, total revenue was ₹17,218.31 Cr, and earnings were ₹1,137.28 Cr on a consolidated basis. For the last quarter ending 31 Mar 2024, income was ₹4,855.18 Cr and profit was ₹361.44 Cr. |
| Who are the key owners of Adani Energy Solutions stock? | Promoter holding has increased from 73.22% in Sep 2023 to 74.94% in Jun 2024. Domestic Institutional Investors holding has risen from 3.87% in Sep 2023 to 3.97% in Jun 2024. Foreign Institutional Investors holding has dropped from 17.74% in Sep 2023 to 15.53% in Jun 2024. Other investors’ holding has grown from 5.17% in Sep 2023 to 5.56% in Jun 2024. |
| What are the returns for Adani Energy Solutions share? | 1 Week: -2.42%, 1 Month: -1.66%, 3 Months: -5.94%, 6 Months: -13.68% |
Corporate Actions: Adani Energy Solutions Shares Price Target
| Ex-Date | Type | Description | Record Date |
|---|---|---|---|
| 30-Apr-2024 | BC | Outcome of Board Meeting and submission of Audited Financial Results for Q4 and year ending 31 Mar 2024 | 25-Jun-2024 |
| 26-Jun-2024 | BC | Details of Voting Results of the 11th Annual General Meeting | 25-Jun-2024 |
| 29-May-2024 | BC | Annual General Meeting | 18-Jun-2024 |
| 22-May-2024 | BC | Proposal of raising funds | 27-May-2024 |
| 30-Apr-2024 | BC | Non Convertible Debenture Payment of Interest | 13-May-2024 |
Adani Energy Solutions Shares Price Target: Peer Comparison
| Scrip Name | Price | Daily Change | M.Cap (Cr) | 1 Year Returns % | P/E (TTM) | PB Ratio |
|---|---|---|---|---|---|---|
| Adani Energy Solutions Ltd | 1,001.60 | -1.65 | 111,911.80 | 33.79 | 188.34 | 10.25 |
| CESC Ltd | 181.91 | -4.15 | 24,663.56 | 147.58 | 31.86 | 2.50 |
| BF Utilities Ltd | 840.50 | -0.95 | 3,168.90 | 119.61 | 313.90 | 21.37 |
| Orient Green Power Company Ltd | 21.78 | +0.08 | 2,128.17 | 112.33 | 0.00 | 2.22 |
| Gujarat Industries Power Co Ltd | 249.05 | +8.98 | 3,631.06 | 111.33 | 18.30 | 1.10 |
| Karma Energy Ltd | 79.64 | +1.69 | 90.19 | 85.60 | 50.05 | 2.33 |
Cash Flow Analysis: Adani Energy Solutions Shares Price Target
| Particulars | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Cash and Cash Equivalents (Start) | 2.64 | 2.15 | 8.02 | 800.78 | 31.22 |
| Net Cash from Operating Activities | -209.49 | -15.28 | 2.84 | -22.00 | -17.35 |
| Net Cash Used In Investing Activities | -2000.95 | -1665.02 | 239.69 | 190.69 | 1971.08 |
| Net Cash Used In Financing Activities | 2210.16 | 1680.79 | -248.40 | -961.45 | -1184.17 |
| Net Increase/Decrease in Cash | -0.28 | 0.49 | -5.87 | -792.76 | 769.56 |
| Cash and Cash Equivalents (End) | 2.36 | 2.64 | 2.15 | 8.02 | 800.78 |
Historical Overview and Corporate Developments
Adani Energy Solutions Ltd operates within the Electrical Utilities sector and had a market capitalization of ₹1,32,367.63 crore as of May 12, 2021. Incorporated on December 9, 2013, it reported combined revenue of ₹11,415.96 crore as of March 2021.
Recent Developments:
- March 15, 2018: Acquired 100% equity of Fatehgarh-Bhadla Transmission Limited.
- March 2021: Net sales were ₹2,726.61 crore, marking a 14.44% decrease from the previous year, while net profit stood at ₹256 crores, showing a 255% increase.
Shareholder Composition Of Adani Energy Solutions Shares Price Target
| Shareholder Type | Sep 2023 | Jun 2024 |
|---|---|---|
| Promoters | 73.22% | 74.94% |
| Domestic Institutional Investors (DIIs) | 3.87% | 3.97% |
| Foreign Institutional Investors (FIIs) | 17.74% | 15.53% |
| Other Investors | 5.17% | 5.56% |
Summary of Adani Energy Solutions Share Price Target
- Current Price: ₹1,001.00 (as of 11 Jul, 2024)
- Analyst Price Target: ₹1,200.00 (12-month forecast)
Key Takeaways Of Adani Energy Solutions Shares Price Target
- Volatility: The share price has exhibited notable volatility, reaching a high of ₹1,250.00 and a low of ₹686.00 over the past 52 weeks.
- Performance: With an impressive return of 33.79% over the last year, this share is a strong performer in the power sector.
- Investment Consideration: While the high PE and PB ratios may suggest overvaluation, the solid returns and robust corporate actions position this stock as an attractive investment opportunity.
Begin your investment journey with Adani Energy Solutions by creating your demat account via this link. For further insights and trading education, visit GRM IIT at https://grmiit.com.
Disclaimer
All investments are subject to market risks. Past performance does not guarantee future results. It is advisable to conduct thorough research or consult with a financial advisor before making investment decisions.
