Adani Energy Sol (ADANIENSOL)

FairStock Score: 48/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I'm looking at Adani Energy Sol as a power-distribution utility trading at ₹1,616 with a ₹1.98 lakh Cr market cap. Graham would first ask what I am paying for. At P/E 66.67 and P/B 7.63, against book value of ₹211.67 and a Graham Number of ₹286.51, the margin of safety is -253.06%. That is not a bargain; it is an optimistic price. The business has grown revenue at 15.80% over five years, and the latest quarter showed sales of ₹6,730 Cr and net profit of ₹574 Cr. But current sales growth is only 8.18%, and profit growth has fallen -68.61%. ROE of 10.18% and ROCE of 10.23% are not high enough to suggest a wide moat or exceptional capital efficiency. Debt/equity of 1.95 and free cash flow of ₹-6,527 Cr are red flags; Altman Z-Score of 1.99 adds caution. Piotroski F-Score of 7/9 is a modest positive, and PEG 0.92 looks acceptable only if growth recovers. Promoter holding of 72.72% aligns interests, but zero dividend yield means no cash return. EV/EBITDA of 389.09 is extreme. As a Buffett-style investor, I prefer wonderful businesses at fair prices. This may be a large, essential utility with scale, but the numbers show low returns, heavy leverage, negative free cash flow, and a valuation that already assumes a lot. I would watch debt reduction, free cash flow turning positive, profit growth stabilizing, and returns on capital improving. Until then, it is a watchlist name, not a margin-of-safety purchase.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer