📈 Company Growth and Financials
Performance Overview:
- Revenue:
- Q3 FY25: ₹94.36 crore (up 30% YoY, 98% QoQ)
- 9M FY25: ₹200.10 crore (up 35% YoY)
- EBITDA:
- Q3 FY25: ₹15.06 crore (up 24% YoY, 60% QoQ).
- 9M FY25: ₹32.83 crore (up 38% YoY)
- Net Profit (PAT):
- Q3 FY25: ₹10.39 crore (up 34% YoY, 86% QoQ).
- 9M FY25: ₹21.79 crore (up 48% YoY)
- Return on Capital Employed (ROCE):
- FY24: 40%, indicating strong capital efficiency.
Advait Energy Transitions has demonstrated consistent revenue and profit growth, driven by expansion in power transmission and renewable energy sectors. The company is on track for strong profitability with improving margins.
🛠️ Order Book and Business Expansion
Key Developments:
- Power Transmission Business:
- 500KM OPGW supply completed.
- 4,500KM of OPGW live-line stringing in UPPTCL projects.
- First Emergency Restoration System (ERS) supplied under ‘Make in India’ to PGCIL
- New & Renewable Energy Business:
- 30 MW Solar EPC Project completed in Gujarat.
- Awarded first 50MWh BESS project in Gujarat.
- JV established for fuel cell manufacturing
Advait’s expansion into power transmission and renewable energy projects has strengthened its position as a market leader, ensuring strong order inflows.
🚀 Future Projections
Growth Expectations:
- Revenue Target: 300 MW electrolyser manufacturing by 2027, expanding to 1GW by 2030.
- Profitability Improvement: Expected higher margins in GH2, BESS, and Solar EPC segments.
- Strategic Projects:
- Green Hydrogen: 1 MW GH2 plant under construction in Gujarat.
- Fuel Cell Business: Entered JV for local production.
Advait is aggressively expanding into the green energy market, with electrolyser manufacturing, fuel cells, and solar projects driving future growth.
💰 Debt and Financial Health
Key Metrics:
- Debt-to-Equity Ratio: Improved to 0.29x in Dec 2024 from 0.48x in March 2024.
- Long-Term Credit Rating: Upgraded to CRISIL BBB+.
- Working Capital: Current ratio improved to 1.73 in FY25.
Advait’s low debt levels and improved financial ratios provide a stable foundation for future expansion.
🌍 Market Size and Opportunities
Total Addressable Market (TAM):
- India’s Green Hydrogen Market: Expected to reach 500 MMT production by 2030.
- Battery Energy Storage (BESS) Market: 1 GW projects planned over the next 5 years.
- Solar EPC Business: 500 MW projects targeted by 2026
With India’s push for renewable energy and government incentives, Advait is well-positioned to capitalize on massive growth opportunities.
⚖️ Regulatory and Market Influences
Key Insights:
- Strong government backing for renewable energy projects.
- Preferential allotment of ₹107.44 crore in FY25 ensures financial stability
- No major regulatory risks reported.
Advait’s alignment with India’s green energy goals and stable financial position make it a low-risk, high-growth investment.
📊 Technical Analysis
Current Market Trends:
- Support Levels: ₹750, ₹820.
- Resistance Levels: ₹950, ₹1,020.
- RSI: Around 55-60, indicating a neutral-to-bullish trend.
- Moving Averages:
- 50-day EMA: ₹880
- 200-day EMA: ₹840
- Breakout above ₹950 could signal a strong rally toward ₹1,100.
The stock is trading in an uptrend, with bullish potential if ₹950 is breached.
💡 Valuation and Investment Outlook
Key Insights:
- Fairly valued based on EBITDA and revenue growth.
- Short-term Outlook: Bullish if the stock sustains above ₹950.
- Long-term Outlook: Positive, backed by renewable energy expansion and government policies.
Advait Energy Transitions is a strong long-term investment due to its leadership in power transmission, aggressive expansion into green energy, and solid financial health.
