In this article, we will compare the business of renewable or green energy space of Adani Green and Tata Power. So, let’s get started!
Adani Green Vs. Tata Power:
- From overall solar capacity, Adani Green has a larger capacity than Tata Power with a production capacity of 4,763 MW whereas the same is 2,624 MW for Tata Power.
- In terms of Wind capacity, Tata Power owns a larger capacity than Adani Green with a production capacity of 801 MW while Adani Green has a capacity of 647 MW.
- In addition to that, Adani Green has a hybrid capacity of 390 MW as well.
- In terms of Plant Load Factor (PLF) or capacity utilization, Adani Green is ahead of Tata Power. For Solar Power, Adani Green has a PLF of 26.5% as of Q1FY23 which was 25% in Q1FY22. Tata Power has PLF of 23% and 24% of Solar Power for Q1FY23 and Q1FY22 respectively.
- For Wind Power, Adani Green has a PLF of 47% as of Q1FY23 against 26% of Tata Power. Also, Adani Green has witnessed a jump in PLF of around 8.5% on a YoY basis.
- In Q1FY23, Adani Green sold 2,751 million units of solar power and 665 million units of wind power. Tata Power only sold 1,321 million units of Solar Power in Q1FY23 and 456 million units of Wind power despite having similar capacity in Wind Power.
- Moving towards the revenue of the companies from this business, then Adani Green earned Rs. 1,635 Cr. from renewable energy businesses whereas Tata Power only generated revenue worth Rs. 872 Cr.
- For Realization Per Unit, Adani Green lags slightly behind Tata Power as Tata Power earns Rs. 4.91 per unit against Rs. 4.79 per unit of Adani Green.
- Moreover, despite lagging in terms of realization per unit, Adani Green earns higher EBITDA than Tata Power. Adani Green earned an EBITDA of Rs. 948 Cr. while Tata Power only earned Rs. 749 Cr.
- Talking about EBITDA per unit, Adani Green has a lower EBITDA per unit than Tata Power of just Rs. 2.78, same is Rs. 4.21 for Tata Power.
- Now, Adani Green has an operating margin of 58% much lower than Tata Power which has an operating margin of 85.9%.
What Should Investors Do?
Overall, the expansion of the operation of Adani Green along with its plans is much more aggressive than Tata Power. Tata Power, on the other hand, is having diversified business across the same sector and hence it can be benefited from group synergy. Hence investors need to keep a close eye on both these stocks but should follow due diligence before making any investment decisions.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.