Adani Green Energy Limited (AGEL) stock opened its trading hour today at Rs 965 and currently trades at Rs 956. The scrip is up nearly 2 percent in comparison to the previous closing price of Rs 941.15.
Seeing the graphical presentation of stock movements in the past month, exhibits a volatile shift from upside movements in March, downside during April’s first week and again showing upside this week.
The recent upside is witnessed after the company, on Friday, provided an operational update for FY22-23. The main highlights constituted the total operational capacity and sales of energy by the company. The total operational capacity increased by 49% on a YoY basis to 8,086 MW, being the largest in India. Sales of Energy, during the same period, increased by 58% to 14,880 million units in FY22-23 vs 9,426 million units in FY21-22.
Adani Green Energy Limited is an India-based company that has engaged in renewable power generation and ancillary activities. It develops, operates, as well as maintains utility-scale grid-connected solar power, wind power, hybrid projects, etc. Power projects of the company are located in states such as Gujarat, Punjab, Rajasthan, Maharashtra, Uttar Pradesh, etc.
A quick glance at the financials leads us to observe a contrasting movement as far as the revenues and net profits are concerned. The revenues, on one hand, shifted from Rs 1,586 crores in Q2 to Rs 1,973 crores in Q3. On the other hand, the net profit figures of the company moved down from Rs 146 crores in Q2 and took a deep fall to Rs 60 crores during Q3.
The return on equity (ROE) numbers, transitioned to positive ratios in the past couple of years, reported growth from 22.41 percent in FY20-21 to 47.68 percent in FY21-22. Return on capital employed (ROCE) numbers, on a contrasting note, went down from 10.72 percent in FY20-21 to 7.84 percent in FY21-22.
In addition to the above, the net profit margin, on a YoY basis, has increased from 5.83 percent in FY20-21 to 9.53 percent in FY21-22.
One alarming aspect to note is the consistently increasing debt-to-equity ratio of the company with the most recent movement from 29.28 during FY20-21 to 45.05 in FY21-22.
As per the latest Q4 data, promoters hold a 57.26 percent stake in the company. FIIs, on the other hand, have shown faith and increased their stake from 15.14 percent during Q3 to 17.13 percent in Q4.
Written by Amit Madnani
