- The solar and wind power generator has a portfolio of 5,290 megawatts and half of it is operational. In the last three quarters, the company achieved breakeven , and has been showing a steady growth in profits.
- Most of its power sales in long-term contracts with low risk buyers like NTPC and Solar Energy Corporation.
- The risk of construction is much lower in solar and wind projects due to shorter timelines and fewer technological challenges.
The best Adani stock this year is also the most green one
The stock appreciation might have made up for Adani Power’s performance whose coal-based portfolio which is facing headwinds. Lighter debt, the company’s decision to divide risk of its green portfolio projects into special purpose vehicles cuts the debt risk of the company.
Most of Adani group stocks with the exception of power generation appreciated-- even the transmission arm. But none could match the value appreciation that Green Energy generated especially since October.
| Group Company | Annual share price appreciation |
| Adani Gas | 49.5% |
| Adani Transmission | 70.5% |
| Adani Power | -24% |
| Adani Ports and Special Economic Zone | -2% |
| Adani Enterprises | 38.8% |
| Adani Green Energy | 229% |
The solar and wind power generator has a portfolio of 5,290 megawatts and half of it is operational. In the last three quarters, the company achieved breakeven , and has been showing a steady growth in profits.
The risk of construction is much lower in solar and wind projects due to shorter timelines and fewer technological challenges. Moreso, there are a lot of takers for the green power it generates and has long-term sales agreements which provide it with revenue visibility.
“AGEL has 62% of the operational and under construction capacity tied up with NTPC and Solar Energy Corporation of India. The balance 38% of the capacity is tied to moderate-to-high credit risk counterparties such as Tamil Nadu Generation and Distribution Corporation Limited, Karnataka State Electricity Board and others,” said a report by India Ratings.
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