Adani Green Energy Limited (AGEL) is a big name in India’s renewable energy sector. The energy company started in 2015 and has been growing fast.
Adani Green Energy generates 75% of its revenues from power generation and 25% from traded goods like solar and wind energy equipment.
But earlier the equation was not similar. In FY18, only 1% of its money came from power supply. But in FY22, that jumped to a whopping 75%. That’s a huge shift.
Traded goods, on the other hand, dropped from 94% in FY18 to 25% in FY22, showcasing its commitment to the core business of power generation.
Currently, AGEL has 5,410 MW of operational projects and an impressive 15,024 MW under construction. Adani Green is planning to invest USD 20 billion in renewable energy development over the next decade.
Now, let’s discuss Adani Green Energy’s share price target by 2025 and 2030.
Adani Green Share Price Target 2025 and 2030
#1. Adani Green Share Price Target 2025
Adani Green’s share price is trading around Rs 1,000-1,100, which is about 50% lower than last year’s price.
The primary reason for this dip was a Hindenburg report, a US-based short seller who framed serious allegations on the Adani group of funds manipulation through shell companies.
However, experts believe in the stock’s potential, with a projected price of around Rs 1,200 by 2025. This forecast stems from the expected growth in renewable energy and the company’s expansion plans.
#2. Adani Green Share Price Target 2030
Looking even further into the future, experts predict that AGEL’s share price could reach Rs 1,500 by 2030. While the exact path is uncertain, this prediction considers the expected growth in India’s renewable energy sector.
Fundamental Analysis of Adani Green Energy
#1. Revenue Growth
Over the past few years, Adani Green has been on a revenue growth spree. From Rs 1,480 million in March 2019, it surged to Rs 5,133 million by March 2023. That’s an impressive 245% increase in just four years.
|Financial Year||Revenue (in crores Rs.)|
While the company made more money, it also had higher costs like operating expenses, depreciation, and finance costs.
However, the company’s total revenue from its operations in the first quarter of FY24 increased by 33%. It went up to Rs. 2,176 crore from Rs. 1,635 crore compared to the same time last year, which is a positive sign.
AGEL also earned Rs 228 crore from other sources during the June quarter. This means, they are also earning more income from other places besides their main business.
#2. Profit Growth
Adani Green’s operating profit has increased by 34.2% year-on-year, and net profit for the year grew by a whopping 99.0% year-on-year from FY22 to FY23.
|Financial Year||Net Profit (in crores Rs.)|
AGEL made a profit of Rs 323 crore in the quarter ending June 2023. This is a 51% increase compared to the Rs 214 crore profit they made in the same period last year. So, they’re doing better in terms of profit. Let’s discuss other important ratios for better understanding.
Return on Equity (ROE)
ROE measures a firm’s ability to generate profits from shareholders’ capital. The ROE of Adani Green went down from 41.1% to 16.5% from FY22 to FY23 because of the Hindenberg episode.
Though the ROE of Adani Green is still higher than the Industry average of 9.5%, but you don’t forget AGEL has a very high Debt to Equity ratio of 7.42%.
Whenever you check ROE, also check the debt of that company because higher debt leads to more interest payments and low profitability eventually.
Return on Capital Employed (ROCE)
ROCE measures a firm’s ability to generate profits from total capital employed. In this case, the ROCE improved from 7.0% during FY22 to 8.7% during FY23, indicating positive signs for the company’s capital utilization.
#3. Peers Comparison
AGEL’s major competitors, like NHPC, have given a 42% return, and Tata Power’s share price has given a 21% return in the last one year.
However, the ROE of NHPC (10.84) and Tata Power (12.62) is lower as compared to Adani Green Energy (22.83). Adani Green is lagging behind its counterpart, Adani Power in terms of return on equity at 44.
Experts say that if Adani manages to clear its image in the retail investors, it would help AGEL stock to rise in the future.
#4. Other Important Ratios
Earnings per Share (EPS) at Rs 6.8 is relatively low. This number tells us how much profit the company is making for each share of its stock. A low EPS gives a red flag to investors.
When you check EPS also check the P/E ratio because then you can analyze how much money you have to pay to earn the EPS amount on a per-share basis. We’ll discuss that in the next point.
Price to Earnings (P/E) Ratio – At the current price of Rs 1018, the P/E ratio is 132 times its trailing twelve months earnings.
The P/E ratio is like the price tag on an item you want to buy. For AGEL, the P/E ratio is 132. This means that investors are willing to pay 132 times the company’s earnings for one share of its stock.
A high P/E ratio can indicate that investors have high expectations for the company’s future growth.
However, it’s also a sign that the stock may be relatively expensive. Essentially, this implies that if you were to invest in AGEL, you’d be paying a price equivalent to 132 times the company’s earnings just to earn Rs 6.8 in return.
This comparison underscores the premium you’d be paying for each unit of profit generated by the company.
Price to Book Value (P/BV) Ratio – stands at 22.1 times. In simple words, the stock is trading at 22.1 times its book value. Book value is the difference between its assets and liabilities.
A high P/BV ratio could mean the stock is costly, while a low ratio might suggest it’s a good deal.
In this case, the relatively high P/BV ratio implies that investors are paying a premium for the company’s assets.
Price to Cash Flow (P/CF) Ratio – This ratio is 22 times its end-of-year operating cash flow earnings.
This ratio is similar to the P/E ratio but focuses on cash instead of earnings. A high P/CF ratio can suggest that investors have positive expectations about the company’s cash generation. It implies that the company is efficiently converting its operations into cash, which can support future investments and growth.
Technical Analysis of Adani Green Energy
1. Chart trend analysis
Observing the stock’s recent performance, we notice some fluctuations. AGEL experienced a significant drop in late August but managed to recover in the first week of September 2023. For the past 20 days, it has been following a sideways trend.
What does this mean for the future price prediction? Well, a sideways trend could signify a period of consolidation before a potential breakout or breakdown. It’s essential to watch for key support and resistance levels to gauge the stock’s future direction.
If you want to learn intraday chart reading, go through our guide on how to read candlestick charts for day trading.
2. Technical indicators
Technical indicators provide valuable insights. Currently, Adani Green Energy’s oscillators show a neutral sign with 2 buy signals, 8 neutral signals, and 1 sell signal. Moving averages, meanwhile, suggest a sell signal, with 8 sell signals, 1 neutral signal, and 2 buy signals.
Oscillators and moving averages are tools traders use to gauge momentum and trends. The oscillators’ neutral sign implies a degree of uncertainty, while the moving averages’ sell signal could be a cautionary sign. It’s vital to interpret these indicators in the context of broader market trends and news.
Adani Green Energy’s Business Prospects
According to the Group Next Move Strategy Consulting, the renewable energy market will cross two trillion USD by 2030 which would also bring new business prospects for Adani Green Energy.
Meanwhile, Adani Green Energy is not just relying on market dynamics for growth; it’s actively seeking partnerships and expanding its portfolio.
I. Total Energies Collaboration
For instance, French oil major TotalEnergies has invested $300 million in a joint venture with AGEL to develop renewable capacity in India. This partnership focuses on wind and solar farm development and reflects the global interest in India’s renewable energy market.
Additionally, Total SA, another major player, has acquired a 20% equity stake in Adani Green Energy. This partnership aims to accelerate the availability of clean energy and make it accessible to more people.
II. Vento Energy Infra Acquisition
The acquisition of Vento Energy Infra Private Limited, a 40 MW operating solar project in Odisha.
This purchase boosts AGEL’s renewable power capacity to 19.8 GW. This includes 5.4 GW already running, 5.7 GW being built, and 8.7 GW almost ready to go. It’s a significant expansion for them!
Adani Green Energy is on an exciting journey to shape India’s renewable energy landscape. While the stock may have seen fluctuations, its commitment to green energy, strong partnerships, and ambitious growth plans make it a compelling option for long-term investors.
According to the experts, In the long run, you can expect the stock’s price to reach 1500 by 2030.
You can also read about other energy stocks’ target prices –
- Adani Power Shares Target Price
- Ratan Power Share Price Target
- Suzlon Energy Share Price Target
- JP Power Share Price Target
Adani Green Energy Limited (AGEL) is a subsidiary of the Adani Group, focusing on renewable power generation in India, primarily through wind and solar energy.
Adani Green’s share price experienced a dip due to factors like market sentiment, a Hindenburg report, and broader economic conditions. These events can impact stock prices.
Adani Green aims to reach 25 GW of operational capacity by 2025 and a massive 45 GW by 2030. These plans involve substantial investments in renewable energy projects. aims to reach 25 GW of operational capacity by 2025 and a massive 45 GW by 2030. These plans involve substantial investments in renewable energy projects.
Adani Green aims to reach 25 GW of operational capacity by 2025 and a massive 45 GW by 2030. These plans involve substantial investments in renewable energy projects.