Tag Renewable Energy

IREDA Ltd
IREDA Shares Surge 3.94% as Borrowing Limit Rises by ₹5,000 Crore for FY25

Business and Industry Overview: 

Indian Renewable Energy Limited (IREL) and the Indian Renewable Energy Development Agency (IREDA) are both working towards clean energy in India. IREL is a private company that focuses on solar energy projects and explores new investments in power generation. It helps set up rooftop solar plants and looks for ways to grow in the renewable sector. IREDA, on the other hand, is a government-backed financial institution. It provides loans and financial help to projects related to solar, wind, hydro, and energy efficiency. IREDA was set up in 1987 and works under the Ministry of New and Renewable Energy (MNRE). It ensures that businesses and individuals get funding to invest in green energy. The company also follows strict rules for ethical business, data security, and quality management. Both organizations aim to make renewable energy more affordable and accessible. They want India to use cleaner power sources, reduce pollution, and move towards a sustainable future. 

India’s renewable energy industry is growing very fast. The government wants to produce 500 GW of electricity from clean energy sources like solar, wind, and hydro by 2030. In 2023, India added 13.5 GW of renewable energy capacity. This was done with an investment of Rs. 74,000 crore (US$ 8.90 billion). India has a bigger plan to invest Rs. 9.22 lakh crore (US$ 109.50 billion) to build more energy infrastructure and meet the demand, which is expected to be 458 GW by 2032. 

The government is focusing a lot on solar energy. In the 2024-2025 budget, they increased the money for building solar power grids to Rs. 8,500 crore (US$ 1.02 billion), which is double what they spent the year before. The government is also supporting clean energy like green hydrogen and electric vehicles (EVs). Indian companies plan to invest Rs. 67,42,400 crore (US$ 800 billion) in these areas. 

The government is also helping farmers through the PM-KUSUM scheme, which gives money to farmers to set up solar pumps and solar power plants. This helps them with their farming and water needs. In Rajasthan, the government signed a deal with NTPC Green Energy to set up 28,500 MW of renewable energy projects. 

As of 2023, India is ranked 4th in the world for wind power, solar power, and overall renewable energy capacity. India is also a top leader in cutting down carbon emissions. It is one of the top three countries in the world for reporting and reducing carbon emissions. With more investments, clear government plans, and a focus on clean energy, India is becoming a leader in renewable energy and is moving towards a cleaner and more sustainable future. 

IREDA is a strong player in India’s renewable energy market. It gets a lot of support from the government, which helps it provide loans and funding for clean energy projects. IREDA has been around since 1987 and is known for helping build projects in solar, wind, and energy efficiency. It works closely with the government’s plans to increase clean energy in the country. IREDA also has a good reputation for being reliable and transparent in its work. As the demand for renewable energy grows, IREDA is in a good position to keep helping develop new energy sources, even though there are new private companies entering the market. 

Latest Stock News: 

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) have dropped 53% from their highest value of Rs 310 in July 2024. The stock is now in the oversold zone, with an RSI (Relative Strength Index) of 26.6, meaning the stock could be undervalued. When the RSI is below 30, it shows the stock is oversold, and when it’s above 70, it’s overbought. On March 20, 2024, the stock went up by 4.12% to Rs 143.85, and the company’s market value is Rs 38,623 crore. 

The stock reached its lowest point in 52 weeks at Rs 124.50 on March 20, 2024, but experts see Rs 137 as a strong support level and Rs 145 as resistance. If the stock goes above Rs 145, it could rise to Rs 150 or even Rs 180 soon. 

IREDA is a government-run company under the Ministry of New and Renewable Energy (MNRE). It has been helping promote renewable energy and energy-saving projects for over 36 years. Recently, the company’s borrowing plan for 2024-25 was increased by Rs 5,000 crore to Rs 29,200 crore, which will help fund more projects. This news caused the stock to go up by 4.6%. 

However, IREDA also faced some challenges. The Reserve Bank of India (RBI) did not approve its request to invest in a 900 MW Hydro Electric Power Project in Nepal. Financially, IREDA saw a rise in Non-Performing Assets (NPAs), which went up by 30.4% to Rs 1,845.5 crore, and Net NPAs increased by 53.75%. But the company still reported a 39% increase in Net Interest Income (NII) to Rs 622.25 crore, and its net profit grew by 27% to Rs 425.4 crore. 

Even though the stock has fallen 35% this year, the company’s strong growth in profits and new borrowing plans show that it could recover and perform better in the future. 

IREDA is a government company that supports renewable energy projects in India. It plans to raise ₹29,500 crore this year to fund these projects. Of this amount, ₹25,000 crore will come from loans, and ₹4,500 crore will come from selling company shares. The company is seeking government approval to reduce its ownership by up to 10% to make this possible. 

IREDA also aims to increase its loan portfolio from ₹59,650 crore at the end of last year to over ₹85,000 crore by the end of this year. To maintain its strong financial rating, the company is working to keep a healthy balance between its loans and available capital. 

In September 2024, the Indian government announced plans to sell a 7% stake in IREDA through a share sale. This sale aims to raise up to ₹4,500 crore and will help fund clean energy projects across the country. 

Potentials: 

Looking ahead, IREDA is exploring international expansion opportunities. The company has submitted a draft Green Taxonomy to the Ministry of New & Renewable Energy, which is in an advanced stage. This initiative aims to increase funding for climate-related projects and attract global green investments. 

Overall, IREDA’s plans focus on raising funds, expanding its loan portfolio, maintaining a strong financial position, and supporting India’s renewable energy goals. 

Analyst Insights: 

  • Market capitalisation: ₹ 39,258 Cr. 
  • Current Price: ₹ 146 
  • 52-Week High/Low:₹ 310 / 124 
  • Stock P/E: 25.6 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): 9.30 % 
  • Return on Equity: 17.3 % 

IREDA has shown strong growth, with profits increasing by about 33.9% per year over the last five years. The company’s earnings and profits are rising, which suggests it’s doing well. Its revenue has also gone up a lot in the past year. But, the stock price is high compared to its earnings, meaning it might be expensive right now. Also, the company doesn’t pay dividends and has some issues with how it handles interest costs. Still, since IREDA is a leader in the green energy field and the government is pushing for more renewable energy, the company has good chances of continuing to grow. This makes it a Hold for now. 

Pasupati Acrylon Ltd
Pasupati Acrylon Ltd: Stock Surges 17% After Setting Up 150 KL Grain-Based Ethanol Plant – Growth, Stock Trends & Future Prospects

Business and Industry Overview: 

Pasupati Acrylon Limited (PAL) is a leading Indian company that makes acrylic fibers and cast polypropylene (CPP) films. It started in 1982 and has its main office in New Delhi. Its manufacturing unit is in Thakurdwara, Uttar Pradesh. The company makes different types of acrylic fibres under the brand ACRYLON. These fibres are used in sweaters, shawls, blankets, carpets, and upholstery. Some fibres are gel-dyed, meaning they have colour inside the fibre. Some are low-pill fibres, which do not form small fabric balls. Some are shrinkable and are used to make fabrics look like wool. Others are soft-feel fibres, which make clothes more comfortable. The company also makes tow-dyed and super-bright fibres. In 2019, PAL started making CPP films. These films are used in food packaging, medicines, and other industries. The company has a factory with high-tech machines from Germany, Italy, and the UK. It makes many types of CPP films, such as lamination films, white opaque films, and other films. It also makes medical-grade films, anti-fog films for bread packaging, retort films for high-temperature food storage, and peelable films for easy-open packaging. PAL is financially strong. In March 2023, its revenue was₹217.14 crore, and its profit was₹5.38 crore. It has a market value of ₹400.12 crore. Its earnings per share (EPS) is ₹3.99, and its return on equity (ROE) is 10.82%. The company always tries to reduce costs and improve profits. In 2024, PAL started a 150 kiloliter per day (KLPD) ethanol plant. It makes ethanol from grains. Ethanol is a clean fuel that can reduce the use of petrol and diesel. This helps the Indian government’s ethanol blending program. PAL sells its products in India and other countries. It focuses on quality, new technology, and sustainability. It has strong relationships with customers. The company keeps expanding its business and making new products. It is one of the top companies in synthetic fiber and packaging in India. 

India’s acrylic fiber and CPP film industries are growing as demand increases in clothing, packaging, and industry. Acrylic fiber is a man-made material made from polyacrylonitrile. India makes 147.40 metric tons of acrylic fiber each year. But production is going down because making it is expensive and profits are low. In 2016-17, production dropped by 17% compared to the previous year. The demand is also not growing fast. China makes and uses the most acrylic fiber in the world. 

India’s CPP film industry is growing fast because packaging needs are increasing. CPP films are strong, flexible, and keep moisture out. This makes them useful for food packaging, medicine, and industrial wrapping. These films help keep food fresh and protect medicines. Many Indian companies are using new machines to make better-quality films. The government is also supporting local production and promoting eco-friendly packaging to reduce waste. Both industries have challenges like high costs, competition, and price changes. But companies are finding new ways to improve quality and reduce costs. As clothing and packaging needs grow, these industries will also expand and become stronger in the future. 

Latest Stock News: 

Pasupati Acrylon Ltd’s stock price jumped 13.49% to ₹48.47 because investors got good news. The company finished making a big ethanol plant that can produce 150 KL per day. This made people excited, and the stock went up nearly 17% to ₹49.89. But it is still 29% lower than its highest price of ₹70.79 in September 2024. The stock has gone up more than 50% from its lowest price of ₹33.20 in June 2024. The company made good profits in the third quarter of FY24 -25 and has less debt, which means it is in a strong financial position. In the last five years, the stock has grown 600%, but in the past year, it has not moved much. In March 2025, the stock rose 23.5% after falling 15% in February. In January 2025, it went up 3%. The company has not yet said when the ethanol plant will start working, but people are hopeful that it will happen soon. Investors are keeping a close watch on the stock. 

Potentials: 

Pasupati Acrylon Ltd has big plans to grow. The company has built a big ethanol plant that can make 150 KL per day. It is now getting ready to start making ethanol. This will help the company sell more and earn more money. The government supports biofuels, so this can help the company even more. 

At the same time, the company is working to make better-quality acrylic fiber. It will use new technology to improve its products. This will help the company sell more in India and other countries. 

The company also wants to stay strong financially. It will keep its debt low and try to make more profit. This will help it invest in new projects and grow more. It may also work on renewable energy and eco-friendly materials. 

In the future, the company may work with other businesses, open new factories, or find new ways to grow. Investors believe these plans will help the company become bigger and increase its stock price. People are excited to see how the company moves forward. 

Analyst Insights: 

  • Market capitalisation: ₹ 477 Cr. 
  • Current Price: ₹ 53.2 
  • 52-Week High/Low: ₹ 71.0 / 33.2 
  • Stock P/E:13.0 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): 6.09 % 
  • Return on Equity: 4.09 % 

Pasupati Acrylon Ltd. has not grown well in the past five years, with sales falling by 6.96% and profit dropping by 14% in this period. In the last three years, profit has dropped by 33%, showing weak performance. The company’s return on capital employed (ROCE) is 6.09%, and its return on equity (ROE) is 4.09%, which means it does not earn much from the money it uses. Even though its latest sales improved to ₹174 crore, past performance shows unstable growth. The stock price increased by 43% in one year, but long-term growth is uncertain. The company has low debt, and promoters hold 65.87% of shares, which shows stability. However, it does not give dividends, meaning investors do not get extra money. Also, it takes 95 days to sell inventory and 35 days to get paid, which is not very efficient. Because of this mixed performance, investors should wait and watch to see if the company keeps improving before buying or selling. 

Adani Enterprises Ltd Q3 FY25 Results
Adani Enterprises Ltd Q3 FY25 Results: Revenue Decline of 8.8%, Profit Growth to ₹229 Crore

Adani Enterprises Ltd: Overview 

Incorporated in 1993, Adani Enterprise Ltd. (AEL) is the flagship Company of the Adani Group and acts as the Group’s incubator for new businesses across diverse sectors. It plays a key role in infrastructure development, including energy, logistics, mining, and emerging industries such as green hydrogen and airports. AEL continues to expand its footprint through strategic investments, leveraging India’s economic growth, energy transition, and infrastructure modernization. The company operates in industries aligned with national priorities such as energy security, sustainability, and digital transformation. The Indian government’s focus on renewable energy, infrastructure development, and logistics efficiency presents significant opportunities for AEL. AEL imports coal through its established coal sourcing arrangements with coal suppliers in Indonesia, Australia, and South Africa and sells to a diversified domestic clientele. Despite regulatory challenges and global economic uncertainties, the company remains positioned for strong long-term growth due to its diversified operations and strategic business model. 

Latest Stock News 

Navi Mumbai Airport has successfully conducted its first commercial flight validation test, marking a significant milestone towards becoming fully operational. Additionally, during the quarter, 14 new routes, four new airlines, and nine new flights were introduced, enhancing connectivity. In the data center segment, Phase I of the Hyderabad Data Center, with a capacity of 9.6 MW, is now fully operational. Meanwhile, Noida Data Center, as well as Pune 1 & 2 (Phase I), have surpassed 50% completion, with construction nearing 99% for the 50MW core & shell and 10MW MEP. In the renewable energy sector, ANIL’s wind business has made progress with the listing of the 3.3 MW WTG model in the RLMM, bringing the total listed models to four. In solar manufacturing, module sales have reached approximately 3.3 GW over nine months, driven by a 20% growth in exports and a remarkable 176% increase in domestic sales. On the financial front, ACLLP launched an Offer-For-Sale (OFS) for approximately 19.51 crore shares at a floor price of ₹275 per share, including a base issue of 17.55 crore shares and a green shoe option of 1.96 crore shares. The company successfully sold 17.56 crore shares at an average price of ₹276.50 per share, generating net proceeds of ₹4,808 crore. As a result of this transaction, ACLLP/AEL’s stake in its joint venture Adani Wilmar Ltd. (AWL) has reduced from 43.94% to 30.42%. Consequently, Adani Enterprises Ltd.’s (AEL) consolidated PAT will reflect an impact of approximately USD 36 million (₹300 crore) from this exit. 

Business Segments

  • Integrate Resource Management: The mining business unit of the Adani group was established in 2007 AEL has a leading position in India in the Integrated Resources Management business wherein AEL imports coal through its established coal sourcing arrangements with coal suppliers in Indonesia, Australia, and South Africa and sells to a diversified domestic clientele. 
  • Mining: Operations are focused on mining business i.e. Developer & Operator (MDO – Coal & Iron Ore) and Commercial Mining (Coal) it operates several mines across India and is also developing and operating mines in Indonesia and Australia. 
  • Solar PV Manufacturing: Adani Solar is the largest integrated solar manufacturer in India. It has a manufacturing facility of 1.5 GW capacity along with Research and Development (R&D) facilities within an Electronic Manufacturing Cluster (EMC) facility located in Mundra Special Economic Zone (SEZ). Adani Solar’s manufacturing facility with multi-level infrastructure will be optimized for scaling up to 3.5 GW of modules and cells under a single roof 
  • Road Development: AEL has also operational projects under the road segment, water segment, and data centers. Road projects are being undertaken by Adani Road Transport Ltd. Under the road segment, AEL currently has 14 ongoing projects and with 5 under the Build-Operate-Transfer model, 8 under Hybrid Annuity Model, and a project under the toll-operate-transfer model. Out of the above, 1 is operational, 1 is near completion and the rest are at various stages of completion. 
  • Data Centers: AEL is having two water projects being undertaken by Adani Water Ltd. AEL is developing data centers under Adani Connex which is a Joint Venture between AEL and Edge Connex. In the initial phase, Adani Connex will develop data centers in Chennai, Navi Mumbai, Noida, Vizag, and Hyderabad.  
  • Airports: The Adani Group forayed into the airports sector in 2019, Adani Airports won the mandate to modernize and operate six airports – Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram – through the Airports Authority of India’s globally competitive tendering process. Adani Airports will operate, manage and develop all six airports for 50 years. 

Subsidiary Information

Adani Green Energy Ltd. 

Adani Green Energy Ltd. (AGEL) is one of the largest renewable energy companies in India, dedicated to accelerating the transition towards sustainable and clean energy solutions. The company focuses on solar and wind power generation, with a growing portfolio of operational and under-construction projects. AGEL has aggressively expanded its renewable capacity through strategic acquisitions, public-private partnerships, and Greenfield developments. 

Adani Airports Holdings Ltd. 

Adani Airports Holdings Ltd. (AAHL) is the aviation arm of the Adani Group, managing and operating several major airports across India. The company oversees key airports, including Mumbai, Ahmedabad, Jaipur, Lucknow, Thiruvananthapuram, Guwahati, and Mangaluru, handling millions of passengers annually. AAHL has undertaken large-scale infrastructure modernization projects to enhance passenger experience, increase operational efficiency, and integrate cutting-edge technology in airport management. 

Adani Road Transport Ltd. 

Adani Road Transport Ltd. (ARTL) is committed to developing India’s road and highway infrastructure, playing a crucial role in improving connectivity and facilitating economic growth. The company specializes in constructing, operating, and maintaining expressways, highways, and major road corridors through public-private partnerships (PPP) and government contracts. With a focus on Build Operate Transfer (BOT), Hybrid Annuity Model (HAM), and Toll Operate Transfer (TOT) projects, ARTL is engaged in several high-value infrastructure initiatives across India. 

AdaniConneX Pvt Ltd. 

AdaniConneX Pvt Ltd. is a joint venture between Adani Enterprises Ltd. and EdgeConneX, focusing on the development of hyper-scale data centers across India. With the rapid digitalization of industries and the increasing adoption of cloud computing, AdaniConneX is building energy-efficient, secure, and scalable data centers to cater to the growing demand for digital infrastructure. The company plans to establish a 1 GW (gigawatts) data center capacity in India, supporting businesses in sectors like IT, BFSI, e-commerce, and artificial intelligence. 

Adani Wilmar Ltd. 

Adani Wilmar Ltd. (AWL) is one of India’s leading fast-moving consumer goods (FMCG) companies, primarily engaged in the production and distribution of edible oils, food products, and essential consumer goods. The company markets its products under the well-known “Fortune” brand, which has become a household name in India. AWL’s product portfolio includes edible oils, pulses, rice, wheat flour, sugar, ready-to-eat foods, and personal care products. With an extensive supply chain and distribution network, AWL has established itself as a dominant player in India’s food industry.  

Q3 FY25 Earnings 

  • Revenue of ₹22848 crore in Q3 FY25 down by 8.8% YoY from ₹25050 crore in Q3 FY24.  
  • EBITDA of ₹3070 crore in this quarter at a margin of 13% compared to 13% in Q3 FY24. 
  • Profit of ₹229 crore in this quarter compared to a ₹1973 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 25050 22848 127540 96421 
Expenses 21824 19778 118722 85044 
EBITDA 3226 3070 8818 11377 
OPM 13% 13% 7% 12% 
Other Income 491 648 834 1146 
Net Profit 1973 229 2422 3335 
NPM 7.9% 0.1% 0.2% 3.5% 
EPS 16.6 0.5 21.6 28.4 
Adani Green Energy Ltd
Adani Green Energy Ltd: Pioneering India’s Clean Energy Future

Company Overview 

Established in 2015, Adani Green Energy Limited (AGEL) is one of India’s leading renewable energy companies, dedicated to harnessing solar and wind power for a sustainable future. Headquartered in Ahmedabad, Gujarat, AGEL is a key subsidiary of the Adani Group, a diversified conglomerate renowned for its contributions across various industries. AGEL operates a robust portfolio of renewable energy assets, with projects strategically located across India. As of 2024, the company boasts an operational capacity of over 8 GW and a total portfolio of nearly 20 GW, including assets under construction. AGEL is committed to achieving its ambitious target of 45 GW renewable capacity by 2030, reinforcing its role as a global leader in clean energy. 

The company has established itself as a pioneer in adopting cutting-edge technology and innovative practices. AGEL integrates artificial intelligence and machine learning to optimize energy production and enhance operational efficiency. Its extensive use of predictive maintenance ensures reliability and cost-effectiveness, making it a preferred partner for power utilities and governments. A cornerstone of AGEL’s strategy is its long-term Power Purchase Agreements (PPAs) with reputed off-takers, which ensure stable cash flows and reduced market volatility. These agreements, often spanning 25 years, reflect the trust and confidence of stakeholders in AGEL’s capabilities. 

Adani Green has also made significant strides in sustainability and environmental stewardship. By offsetting millions of tons of carbon dioxide emissions annually, the company actively contributes to India’s climate action goals and aligns with global ESG (Environmental, Social, Governance) standards. AGEL’s efforts have been recognized globally, including awards for excellence in renewable energy development and corporate responsibility. With its strong domestic foundation, forward-looking strategies, and unwavering commitment to sustainability, Adani Green Energy Limited continues to lead India’s transition to a green energy future. By leveraging its innovative approach and operational expertise, AGEL aims to play a pivotal role in shaping a sustainable and energy-secure world. 

Returns Summary

YTD 1 Month 6 Month 1 Year 2 Year 3 Year 5 Year 
-35.44% -2.02% -43.10% -32.78% -42.93% -25.60% 592.94% 

Result Highlights

Adani Green Energy Limited (AGEL) has reported robust financial and operational performance for the second quarter of fiscal year 2025 (Q2 FY25), reflecting significant growth across key metrics. 

  • Revenue Growth: AGEL’s revenue from operations increased by 30% year-over-year (YoY) to ₹3,376 crore in Q2 FY25, up from ₹2,589 crore in the same quarter of the previous year. 
  • Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.  
  • Net Profit: The company achieved a consolidated net profit of ₹515 crore, marking a 39% YoY increase compared to ₹371 crore in Q2 FY24.  
  • Capacity Expansion: The operational capacity grew by 34% YoY to 11,184 megawatts (MW), driven by substantial greenfield additions, including 2,000 MW of solar capacity and 250 MW of wind capacity in Khavda, 418 MW of solar capacity in Rajasthan, and 200 MW of wind capacity in Gujarat.  
  • Energy Sales: Energy sales increased by 20% YoY, totalling 14,128 million units in H1 FY25, attributed to the robust capacity additions and strong operational performance. 
  • Cash Profit: The company’s cash profit surged by 27% YoY to ₹2,640 crore, reflecting enhanced financial strength.  
  • Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.  
  • Power Purchase Agreement (PPA): AGEL secured a 5 GW solar PPA from the Maharashtra State Electricity Distribution Co. Ltd (MSEDCL), significantly boosting its contracted portfolio and revenue-generating capabilities.  
  • Debt Management: AGEL fully redeemed a USD 750 million Holdco bond, aligning with its commitment to systematic deleveraging and robust capital management. 

Recent Developments 

In November 2024, AGEL faced legal challenges when U.S. authorities indicted founder Gautam Adani and key executives on charges of bribery, alleging a $265 million scheme to secure power supply contracts in India. These allegations led to a substantial decline in AGEL’s stock value, erasing approximately $9.6 billion in market capitalization.  Following these developments, S&P Global Ratings revised its outlook on AGEL from ‘stable’ to ‘negative,’ citing concerns over the company’s ability to access funding and maintain investor confidence. As of December 24, 2024, AGEL’s stock closed at ₹1,031.05, reflecting a year-to-date decline of approximately 32.75%. The company’s market capitalization stands at ₹1.63 trillion. Key financial ratios include a Price-to-Earnings (P/E) ratio of 144.79 and a Price-to-Book (P/B) ratio of 9.39.  

AEGL Outlook and contribution to Industry 

AGEL remains on track to achieve its 2030 renewable energy capacity target of 50 GW, including at least 5 GW of energy storage. The company’s focus on sustainability, operational excellence, and governance practices positions it favourably for continued industry-leading growth.  

AGEL has set ambitious goals to significantly expand its renewable energy capacity. The company plans to invest approximately ₹1,500 billion (US$18 billion) to increase its wind and solar capacity at Khavda in Gujarat’s Kutch region from 2 GW to 30 GW by 2030. This expansion is part of AGEL’s broader target to achieve 45 GW of renewable energy capacity by 2030, contributing to India’s sustainable energy transition.  In line with its growth strategy, AGEL is embracing advanced technologies to enhance operational efficiency. The company is integrating Industry 4.0 solutions, such as N3uron’s technology, to optimize its renewable energy operations.  

AGEL plays a vital role in India’s renewable energy landscape. As of March 2019, the company managed approximately 5,290 MW of wind and solar power plants across 11 states in India, with an operational capacity of around 2,360 MW.  AGEL’s projects contribute significantly to India’s renewable energy targets, supporting the nation’s commitment to increasing the share of renewables in its energy mix. One of AGEL’s notable projects is the Khavda Renewable Energy Plant, which, upon completion, is expected to be the world’s largest renewable energy plant, covering an area five times the size of Paris.  This project exemplifies AGEL’s commitment to large-scale renewable energy development and its contribution to global clean energy initiatives. 

In summary, AGEL’s strategic investments and large-scale projects position it as a key contributor to India’s renewable energy sector, aligning with global sustainability goals and supporting the country’s energy transition efforts. 

Balance Sheet & Cash Flow Analysis 

Adani Green Energy Ltd (AGEL) is demonstrating significant growth, driven by substantial investments in renewable energy infrastructure. Over the years, the company has increased its equity capital modestly from ₹1,564 crores in 2022 to ₹1,584 crores in 2024, while reserves have grown impressively from ₹-71 crores in 2017 to ₹8,992 crores in 2024, reflecting improved profitability and financial health. The company’s borrowings have surged from ₹4,347 crores in 2017 to ₹67,430 crores in 2024, showcasing its reliance on debt to finance its aggressive expansion strategy. This increased leverage, while supporting growth, also presents potential risks if the returns on these investments fall short. 

AGEL’s fixed assets have grown substantially, from ₹4,341 crores in 2017 to ₹64,632 crores in 2024, indicating heavy investments in renewable energy projects. The company’s investments in Capital Work in Progress (CWIP) and other long-term assets signal its continued expansion. Despite negative cash flows from investing activities, which reflect heavy capital expenditures, AGEL has shown strong operational cash flow, growing from ₹28 crores in 2017 to ₹7,713 crores in 2024. This reflects the company’s increasing profitability and its ability to generate internal funding for growth. 

However, AGEL’s heavy reliance on debt financing and its large-scale investments could pose risks, especially if the returns on its projects do not materialize as expected. Effective debt management and successful project execution will be essential for maintaining financial stability. Overall, while AGEL’s growth prospects remain strong, careful monitoring of leverage and cash flow management will be crucial to sustaining its expansion and ensuring continued financial health. 

NTPC Green Energy IPO
NTPC Green Energy IPO: Should You Apply or Avoid?

NTPC Green Energy IPO is a book-built issue of Rs 10,000.00 crores. The issue is entirely a fresh issue of 92.59 crore shares.

About NTPC Green Energy Limited

Incorporated in April 2022, NTPC Green Energy Limited is a wholly-owned subsidiary of NTPC Limited. NTPC Green is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. The largest renewable energy public sector enterprise, NTPC (National Thermal Power Corporation Limited), was incorporated on November 7, 1975. The company’s renewable energy portfolio includes solar and wind power, making it easier to generate clean energy. Additionally, the company aims to develop utility-scale renewable energy projects and projects for public sector undertakings (“PSUs”) and Indian corporations. As of June 30, 2024, the company has an energy capacity of 14,696 MW, consisting of 2,925 MW from operating projects and 11,771 MW from contracted and awarded projects. Compared to its peers, NTPC has achieved higher EBITDA margins and PTA margins in the last 2 years.  The company is constructing 31 renewable energy projects in 7 states, totaling 11,771 MW. As of June 30, 2024, the workforce comprised 234 employees, and the company utilised the services of 45 contract labourers.

IPO Subscription Period

  • Open Date: November 19, 2024
  • Close Date: November 22, 2024
  • Allotment Date: November 25, 2024
  • Listing Date: November 27, 2024
  • Stock Exchanges: BSE and NSE

Pricing Details    

  • Price Band: ₹102 – ₹108 per Share
  • Face Value: ₹10 per Share
  • Minimum Lot Size: 138 shares
  • Investment Requirement:
    • Retail Investors: Minimum ₹14,904 (138 shares)
    • Small Non-Institutional Investors (sNII): 14 lots (1932 shares) – ₹208,656
  • Big Non-Institutional Investors (bNII): 68 lots (9384 shares) – ₹1,013,472

Reservation Structure

  • Qualified Institutional Buyers (QIB): 26.37% (24,44,44,445 shares)
  • Non-Institutional Investors (NII): 13.19% (12,22,22,222 shares)
    • Big NII (bNII): 8.79%
    • Small NII (sNII): 4.4%
  • Retail Investors: 8.79% (8,14,81,481 shares)
  • Anchor Investors: 39.56% (36,66,66,666 shares) raising ₹3960 crores

Key Dates and Timeline

  • IPO Open Date: Thursday, November 19, 2024
  • IPO Close Date: Monday, November 22, 2024
  • Basis of Allotment: Tuesday, November 25, 2024
  • Initiation of Refunds: Wednesday, November 26, 2024
  • Credit of Shares to Demat: Wednesday, November 26, 2024
  • Listing Date: Thursday, November 27, 2024
  • Cut-off time for UPI mandate confirmation: 5 PM on November 22, 2024

Book Running Lead Managers

Niva Bupa Health Insurance Limited has appointed prominent financial institutions as book-running lead managers for the IPO:

  • IDBI Capital Market Services Limited
  • IIFL Securities Limited
  • HDFC Bank Limited
  • Nuvama Wealth Management Limited

Kfin Technologies Limited has been designated as the registrar for the IPO.

Promoter Information

  • Promoter: The Promoters of the Company are the President of India, acting through the Ministry of Power, Government of India and NTPC Limited.
  • Shareholding:
    • Pre-Issue: 100%
    • Post-Issue: 89.01%

Financial Highlights

  • Revenue Growth: Increased by 11 folds from ₹170 crores (FY 2023) to ₹2037.66 crores (FY 2024)
  • Profit After Tax (PAT): Rose by 100%, reaching ₹344.72 crores in FY 2024
  • Net Worth: ₹6232 crores
  • Total Borrowing: ₹12796 crores

Key Performance Indicators (KPIs):

  • ROE: 7.39%
  • RoNW: 2.14%
  • P/BV: 9.89
  • EPS (Pre-IPO): ₹0.46
  • EPS (Post-IPO): ₹0.42
  • P/E Ratio (Pre-IPO): 234.97x
  • P/E Ratio (Post-IPO): 259.56x

IPO Objectives

The company proposes to utilise the Net Proceeds towards funding the following objects:

  • Investment in the wholly owned Subsidiary, NTPC Renewable Energy Limited (NREL), for repayment/ prepayment, in full or in part of certain outstanding borrowings availed by NREL
  • General corporate purpose

Subscription Status (As of November 19, 2024, 7:02:07 PM)

  • Retail: 1.47x
  • QIB: 0.00x
  • NII: 0.17x
  • Overall Subscription: 0.36x
Welspun Enterprises Q2 Results
Welspun Enterprises Q2FY25: Net Profit Declines 11% to ₹61.56 Crore

Company Overview

Welspun Enterprises Ltd, originally known as MSK Projects (India) Ltd, is an Indian company specializing in civil construction contracts and infrastructure projects. Founded on December 20, 1994, the company initially operated as a partnership under the name M.S. Khurana since 1976, before being rebranded as MSK Projects (India) Ltd in 1995. The company later went public in 2004 with an IPO, listing its shares on the BSE, NSE, and VSE. In 2010, it was renamed Welspun Projects Ltd and eventually became Welspun Enterprises Ltd.
Welspun Enterprises engages in a broad range of civil construction projects, such as residential townships, multi-story buildings, industrial plants, and infrastructure development. The company has executed large-scale industrial projects for sectors like petrochemicals, fertilizers, pharmaceuticals, and mining, primarily through Build-Operate-Transfer (BOT) models. It has also expanded into water distribution and surface transport projects, with a significant water supply project underway in Dewas, Madhya Pradesh.
Welspun Enterprises has formed strategic subsidiaries, including MSK Projects (Himatnagar Bypass) Pvt Ltd, Super Infrastructure & Toll Bridge Pvt Ltd, and MSK Projects (Kim Mandvi Corridor) Pvt Ltd, for infrastructure and toll projects. The company has secured notable contracts with Bharat Oman Refineries Ltd and Indian Oil Corporation for extensive civil and structural work across various pipeline and refinery projects.
In 2010, the company also diversified into the energy sector, marking a significant expansion into renewable energy by securing large-scale solar projects and establishing manufacturing facilities, including a 350,000 MTPA LSAW plant in Anjar, India, and an ERW plant in the United States. Welspun Enterprises is widely recognized for its work on the Delhi-Meerut Expressway project, underscoring its leadership in major infrastructure initiatives across India.

Industry Outlook

The Indian infrastructure sector is on a solid growth trajectory for FY25 and beyond, fueled by extensive government initiatives, increased private sector investments, and the demands of urbanization. Programs like PM Gati Shakti are catalyzing sector growth with ambitious projects, including the construction of 2 lakh km of national highways by 2025, along with expressways and urban infrastructure enhancements. The sector is anticipated to grow at a CAGR of 8-10% over the next five years, with highways projected to expand at over 10% annually. This growth extends to airports, ports, and railways, with high-impact projects such as the Delhi-Mumbai expressway and 12 new greenfield airports underway, boosting logistics efficiency and economic progress​.
In line with this growth, Welspun Enterprises Ltd. (WEL) is advancing its “Growth & Green” strategy through the DGT Project, which focuses on the collection, treatment, and repurposing of wastewater from Dharavi for reuse—an initiative underscoring sustainability and water reuse. WEL’s board recently approved an additional 9.99% stake in Welspun Michigan (WMEL), bringing ownership to over 60%. This acquisition supports a collaboration with Smart-Ops Water UK to introduce SABRE technology—a cutting-edge wastewater treatment process aimed at addressing untreated sewage in India.
With a consolidated order book of ₹15,200 crores and a rich pipeline of projects, Welspun Enterprises is positioned to drive execution and create long-term value across its verticals, capitalizing on the expanding infrastructure opportunities in India.

Business Segments

Welspun Enterprises Ltd operates primarily through two key business segments, contributing significantly to its overall portfolio.

  • Infrastructure: This segment focuses on the engineering, procurement, and construction (EPC) of infrastructure projects, particularly in roads, water supply, and urban development. The company engages in both Build-Operate-Transfer (BOT) and traditional EPC contracts. Some notable projects include the construction of major highways, rural water supply projects under the Jal Jeevan Mission, and various urban infrastructure initiatives. The infrastructure segment has seen robust growth, with sales reaching on TTM basis approx. to ₹32.27 billion in Q2FY25​. This segmentation has further diversifications such as water treatment, tunnelling, road constructions, etc.
  • Oil and Gas: In addition to infrastructure, Welspun Enterprises is involved in oil and gas exploration activities. This includes participation in the upstream oil and gas sector through a joint venture with Adani, focusing on a gas-based economy. The company also undertakes water transmission and distribution, alongside water and wastewater treatment services​.

The strategic focus of Welspun Enterprises on sustainable infrastructure development positions it well within India’s growing market, especially with government initiatives aimed at enhancing infrastructure across the nation. The company is actively participating in projects that address critical areas such as water management and urban development, which are pivotal for future growth​.

Key Subsidiaries and Their Information

Welspun Enterprises has several key subsidiaries that enhance its infrastructure portfolio. It also operates through various Associates and Joint Ventures.

  • Welspun Projects (Himmatnagar Bypass) Private Limited focuses on road infrastructure development, specifically the construction and management of bypasses to improve traffic flow.
  • Welspun Projects (Kim Mandvi Corridor) Private Limited is dedicated to developing vital highway corridors that enhance regional logistics.
  • Dewas Water projects Works Private Limited specializes in sustainable water supply infrastructure for urban areas, while
  • Welspun Buildtech Private Limited is involved in the construction of residential and commercial buildings.
  • Additionally, ARSS Bus Terminal Private Limited focuses on transportation infrastructure by developing bus terminals to improve public transport services.
  •  Grenoble Infrastructure Private Limited supports a wide range of urban and rural development projects.
  • DME Infra Private Limited works on diverse infrastructure projects across various sectors.
  • Welspun Sattanathapuram Nagapattinam Road Private Limited handles critical roadway construction and maintenance.
  • Welspun Aunta-Simaria Project Private Limited is engaged in project management, ensuring timely completion and quality oversight of construction projects.
  •  Welsteel Enterprises Private Limited supplies steel products and services for construction needs.
  •  Welspun – Kaveri Infraprojects JV collaborates on large-scale infrastructure initiatives.
  • Welspun EDAC JV Private Limited is involved in significant joint venture infrastructure projects, combining expertise from partners.
  • Welspun Michigan Engineers Limited provides engineering services and contributes to various construction projects, solidifying Welspun Enterprises’ capability to address multiple segments of the infrastructure market.

Q2 FY25 Highlights

  • Revenue from operations surged by 22.1%, reaching ₹788.5 crore, compared to ₹645.7 crore in the same quarter last year. Total income increased to ₹837.92 crore from ₹692.65 crore year-over-year, while expenses rose to ₹736.33 crore from ₹595.61 crore. Highest-ever H1 Income of ₹ 1,798 Crores achieved in period ending September 2024.
  • The company’s EBITDA grew by 21.7%, totaling ₹100.5 crore, up from ₹82.6 crore in the previous year. However, the EBITDA margin slightly decreased to 12.7%, down from 12.8% year-on-year.
  • Consolidated net profit for the September quarter of FY25 fell by approximately 11% to ₹61.56 crore, primarily due to higher expenses. Abhishek Chaudhary has been appointed as the new Chief Executive Officer (CEO), effective November 4, 2024.
  • The consolidated order book of the company stood at ₹15,200 crore at the end of September 2024.
  • The board approved the acquisition of an additional 9.99% stake in Welspun Michigan from Patel Engineering for around ₹100 crore.
  • Welspun Enterprises secured a significant design and build contract worth ₹1,989 crore from the Brihanmumbai Municipal Corporation (BMC). This contract involves designing and constructing a tertiary treated water conveyance tunnel from the Dharavi Wastewater Treatment Facility to the Ghatkopar WWTF.

Financial Summary

SWOT Analysis

Strengths:

  1. Diverse portfolio of projects.
  2. Strong financial backing.
  3. Proven expertise in infrastructure development.
  4. Robust order book with ongoing contracts.

Weaknesses:

  1. High capital expenditure leading to increased debt.
  2. Dependence on government contracts for revenue.
  3. Limited international presence.
  4. Risk of project delays.

Opportunities:

  1. Growing infrastructure sector in India.
  2. Potential for public-private partnerships (PPP).
  3. Expansion into renewable energy projects.
  4. Adoption of technological advancements in project execution.

Threats:

  1. Intense competition in the infrastructure space.
  2. Challenges related to regulatory and environmental compliance.
  3. Rising input costs affecting profitability.
  4. Economic slowdowns impacting project viability.