Adani Green Analysis

ADANI
GREEN
ANALYSIS
Presented By : Nitesh Somani
Roll no: 2410040
PGP-1
1
MACRO AND SECTOR OUTLOOK -
ECONOMIC ENVIRONMENT
Global Economic Environment:
The global economy is experiencing moderate growth with an emphasis on sustainable development.
The push for decarbonization and climate change mitigation is driving investment in renewable energy.
Global GDP growth is projected at around 3% for the next few years, with developing economies growing faster.
Indian Economic Environment:

India is one of the fastest-growing major economies with a GDP growth rate of around 6-7%.
The Indian government is committed to achieving its renewable energy targets, aiming for 450 GW by 2030.
Policies like the National Solar Mission and incentives for renewable energy projects are boosting sector
growth.
2
MACRO AND SECTOR OUTLOOK -
SECTOR ANALYSIS
Renewable Energy Sector:
The renewable energy sector is expanding rapidly, driven by technological advancements and policy support.
Solar and wind energy are the predominant sources, with significant investments in infrastructure.
The sector is expected to grow at a CAGR of 8-10% over the next decade.
Key Trends:
Increasing adoption of solar and wind energy.
Technological innovations such as energy storage and smart grids.
Growing private and public investments.
Opportunities and Challenges:

Opportunities include government incentives, declining costs of technology, and rising energy demand.
Challenges encompass regulatory hurdles, grid integration issues, and financing constraints.
3
COMPANY FUNDAMENTALS - OVERVIEW
Adani Green Energy Ltd:
Adani Green Energy Ltd (AGEL) is one of India's largest renewable energy
companies.
It focuses on developing, owning, and operating utility-scale solar and wind
projects.
As of the latest financial year, AGEL has a portfolio of 14 GW of renewable
energy projects, with 5.4 GW operational and 8.6 GW under development.
Key Financial Metrics:

Revenue: INR 10,460 Cr. (latest fiscal year)
EBITDA: INR 8537 Cr.
Net Profit: INR 971 Cr.
Market Capitalization: INR 275000 Cr.
4
COMPANY FUNDAMENTALS -
GROWTH POTENTIAL
Growth Drivers: Major Projects and Initiatives:
Strategic investments in expanding renewable energy Expansion of solar power capacity across various Indian
capacity. states.
Long-term power purchase agreements (PPAs) ensure Initiatives to enter new markets and diversify the energy
stable revenue. portfolio.
Strong backing from the Adani Group provides financial Investments in technological advancements and
stability and strategic advantages. innovation.
Future Projections:
Projected revenue growth of 33% over the next five years.
Expansion into international markets and collaboration with
global energy players.
5
COMPETITIVE STRATEGY - COMPETITIVE
LANDSCAPE
Industry Position:
Adani Green holds a significant market share in India's renewable energy sector.
Competitors include Tata Power Renewable Energy, ReNew Power, and Azure Power.
Comparison with Competitors:
Adani Green has the largest portfolio of renewable energy projects under development.
Strong financial performance and strategic initiatives place it ahead of many competitors.
6
COMPETITIVE STRATEGY - STRATEGIC INITIATIVES
Key Strategies:
Expansion: Rapid expansion of solar and wind energy capacity to meet growing demand.
Innovation: Investment in cutting-edge technologies like energy storage and smart grids.
Sustainability: Commitment to environmental sustainability and achieving carbon neutrality.
SWOT Analysis: SWOT Analysis:

Strengths: Strong financial backing, extensive Opportunities: Government incentives, growing
project portfolio, strategic partnerships. energy demand, international expansion.
Weaknesses: High capital expenditure, regulatory Threats: Regulatory changes, competitive
dependencies. pressure, market volatility.
8
BALANCE SHEET ANALYSIS
Balance Sheet Highlights:
Assets: Total assets of INR 88,538 Cr., including significant investments in renewable energy projects.
Liabilities: Total liabilities of INR 40,503 Cr., primarily long-term debt for project financing.
Equity: Shareholder equity of INR 8,410 Cr., reflecting strong financial health.
Key Ratios:
Debt-to-Equity Ratio: 4.50:1
Current Ratio: 0.52:1
Return on Equity (ROE): 9.87%
Analysis:
The robust asset base with significant long-term investments can be a positive sign, but this needs to be balanced against the
high debt levels.
The company is highly leveraged with a debt-to-equity ratio of 4.50:1, indicating a significant reliance on debt financing, which can
pose financial risks.
The current ratio of 0.52:1 suggests potential liquidity issues, as the company may not have sufficient current assets to cover its
short-term liabilities.
The strong ROE of 9.87% reflects efficient management of shareholder funds and indicates that the company is generating good
returns on equity.
THANK YOU

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ADANI

Indian Economic Environment:

Opportunities and Challenges:

Key Financial Metrics:

SWOT Analysis: SWOT Analysis:

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