Hello Friends,
In this article, we will discuss Adani Green Vs Adani Power: Company Overview, Financials, and Future Plans of the companies.
Adani Green and Adani Power are both companies engaged in power generation, but there is a slight difference between the two of them. Adani Green generates power through renewable sources like solar and wind, while Adani Power generates power through traditional methods.
| Company | MD/CEO |
|---|---|
| Adani Green Energy Limited | Mr. Vneet Jaain |
| Adani Power Limited | Mr. Anil Sardana |
Table of Contents
Industry Overview-
China is the world’s largest electricity producer, followed by the United States (US) and India. In India, a few years ago, only the government was producing electricity through its own entity, while in the last 10 years, some private players have put off the burden of the government and are participating in power generation. According to data for fiscal year 2020, the private sector share in power generation was 33.46%.
The Indian Government has made a separate institution for the Renewable Energy Ministry of New and Renewable Energy. This institution helps the companies through their policies in power generation.
India still remains dependent on traditional methods of electricity generation like coal and fuel, but the Indian government has decided to be a zero-carbon country by 2070, so the government is pushing towards renewable sources like solar and wind power.
Company Overview
Adani Green Energy Limited :
Adani Green Energy Limited is India’s 2nd largest company in terms of market capital, followed by NTPC. Adani Green Energy Limited was incorporated in 2015 and engages in power generation with renewable sources. In just 9 working years, Adani Green has become the leading player in the renewable energy sector.
The company has a current project portfolio of 20,434 MW with 54 operational projects using the latest technology. The company has a strong presence across 12 Indian states. Adani Green was listed on the stock market on June 18, 2018 for 42.45 INR. Adani Green is currently trading near its 52-week high of 2018 INR, while its 52-week low was 755 INR.
Financials
| Market Cap | 3,01,251 |
| P/E ratio | 206.72 |
| Industry P/E | 20.99 |
| Debt to Equity | 7.23 |
| Return on Equity | 18.40% |
| Dividend Yield | 0.00% |
Adani Power Limited:
Adani Power Limited is India’s 4th largest company in power generation, followed by NTPC, Adani Green, and Power Grid Corporation of India. Adani Power Limited was established in 2006 and has a power generation capacity of 15,250 MW with 8 power projects across the Indian states.
Adani Power Limited is consistently working on power generation with 18 years of experience. The company is working on the expansion of its existing 1200 MW power plant in Singrauli, Madhya Pradesh. This expansion will be based on ultra-supercritical technology.
Adani Power Limited was listed on the stock market on August 20, 2009, for 97.80 INR. Adani Power is currently trading near its 52-week high of 589.45 INR, while its 52-week low was 166.40 INR.
Financials
| Market Cap | 2,04,958 |
| P/E ratio | 8.78 |
| Industry P/E | 20.99 |
| Debt to Equity | 0.80 |
| Return on Equity | 50.86% |
| Dividend Yield | 0.00% |
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Revenue
| Year | Adani Green | Adani Power |
|---|---|---|
| 2023 | 8,633 | 43,041 |
| 2022 | 5,577 | 31,686 |
| 2021 | 3,599 | 28,150 |
| 2020 | 2,629 | 27,842 |
| 2019 | 2,131 | 26,362 |
Adani Green: In FY23, Adani Green reported its revenue of Rs 8,633 crore, compare to Rs 5,577 crore in FY22, which is significantly increased than previous year.
Adani Power: In FY23, Adani Power reported its revenue of Rs 43,041 crore, compare to Rs 31,686 crore in FY22, which is significantly increased than previous year.
Profit-Margin
| Year | Adani Green | Adani Power |
|---|---|---|
| 2023 | 973 | 10,727 |
| 2022 | 489 | 4,912 |
| 2021 | 182 | 1,270 |
| 2020 | -61 | -2,275 |
| 2019 | -471 | -984 |
Adani Green: In FY23, Adani Green gained a profit of Rs 973 crore, compare to Rs 489 crore in FY22, which is almost double the previous year.
Adani Power: In FY23, Adani Power gained a profit of Rs 10,727 crore, compare to Rs 4,912 crore in FY22, which is more than double the previous year.
Shareholding Pattern – Adani Green
| Dec’23 | Sep’23 | Jun’23 | Mar’23 | Dec’22 | |
|---|---|---|---|---|---|
| Promoters | 56.37% | 56.26% | 56.27% | 57.26% | 60.75% |
| Public | 24.10% | 24.09% | 24.00% | 24.16% | 22.70% |
| Foreign Institutions | 18.03% | 18.16% | 18.25% | 17.13% | 15.14% |
| Domestic Institutions | 1.50% | 1.49% | 1.47% | 1.45% | 1.40% |
Promoter: Promoter share-holding is significantly decreased 4.38% in Adani Green after the Hindenburg research report on Adani Group.
Public: Retail share-holding is increasing significantly 1.40% in the previous year.
Foreign Institution: Foreign Institutions has significantly increased 2.89% stake in Adani Green Energy Limited.
Domestic Institution: Domestic Institution was almost consistent in previous year.
Shareholding Pattern – Adani Power
| Dec’23 | Sep’23 | Jun’23 | Mar’23 | Dec’22 | |
|---|---|---|---|---|---|
| Promoters | 71.75% | 70.02% | 74.97% | 74.97% | 74.97% |
| Public | 11.20% | 11.72% | 13.04% | 13.32% | 12.15% |
| Foreign institution | 15.86% | 17.51% | 11.95% | 11.70% | 12.88% |
| Domestic Institution | 1.18% | 0.76% | 0.04% | 0.01% | 0.00% |
Promoter: Promoter share-holding is significantly decreased 3.22% in Adani Power after the Hindenburg research report on Adani Group.
Public: Retail share-holding is decreased significantly 0.95% in Adani Power compare to previous year.
Foreign Institution: Foreign Institutions has significantly increased 2.98% stake in Adani Power Limited in the previous year.
Domestic Institution: Domestic Institution has consistent increasing 1.18% in the previous year in Adani Power.
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Stock performance
| 3 year Data | Adani Green | Adani Power |
|---|---|---|
| Compounded Sales Growth | 45% | 14% |
| Compounded Profit Growth | 192% | 120% |
| Stock Price CAGR | 19% | 81% |
| Return on Equity | 19% | 34% |
Recent Quarter Result
| Adani Green | Adani Power | |
|---|---|---|
| Sales | 2,311 | 12,991 |
| Expenses | 645 | 8,346 |
| Operating Profit | 1,666 | 4,645 |
| Profit before tax | 207 | 3,210 |
| Net Profit | 256 | 2,738 |
Future Plans
Adani Green Energy Limited
- Adani Green Energy Limited is developing ‘the world’s largest green energy park,” which will play a vital role in the company’s growth. This addition will increase India’s renewable energy industry.
- The company is planning to create the world’s most extensive and integrated renewable energy manufacturing ecosystems for solar and wind.
- Under the initiative of “Atmanirbhar Bharat,” 20 million homes will generate 30 GW of power with solar energy.
Adani Power Limited
- Adani Power Limited (APL) has 9 working power plants across the states of Gujarat, Maharashtra, Rajasthan, Karnataka, Chhattisgarh, and Madhya Pradesh.
- Adani Power is working on the upcoming Singrauli power project in Madhya Pradesh. This project has a capacity of 1600 MW.
- The company is working on its commitment to improve biodiversity, climate resilience, and rural livelihoods. Adani is committed to planting 100 million trees by 2030.
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Competitor
| Company | Market Cap | P/E Ratio |
|---|---|---|
| NTPC | 3,06,705 | 15.73 |
| Adani Green Energy Ltd | 3,01,378 | 183.29 |
| Power Grid Corporation of India | 2,47,349 | 15.73 |
| Adani Power Limited | 2,04,572 | 8.77 |
| Tata Power Company Ltd | 1,21,662 | 35.53 |
Conclusion
Adani Group, led by chairman, Gautam Adani, is working in a progressive manner towards India’s best future. These two companies are working in the power generation sector with the help of Adani Group India, an electric exporting country. Adani Group is exporting electricity to Bangladesh. Adani Green is playing a vital role in India’s goal of becoming zero-carbon by 2070.
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Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not an investment advice.