ac investment research

Should I Buy NSE:ADANIGREEN Stock? (6% Forecasted Return) | ADANIGREEN Adani Green Energy Limited Stock Forecast



To assess forecasted working capital outflows for companies with material intra-year working capital requirements (for example, companies in seasonal businesses), we use forecasted peak working capital outflows, per paragraph 32 of the liquidity criteria. For seasonal businesses, in many cases the annual projection might indicate a working capital inflow or neutral working capital, even though there could be material intra-quarter or inter-quarter outflows throughout the year.When determining the cash to be included under sources (A), we use cash that will be available to cover monetary outflows. As a result, we may make haircuts to account for cash trapped overseas (for example, haircut for taxes payable upon repatriation of cash held abroad), apply a discount to lower-quality marketable securities, and exclude restricted cash held for specific purposes. We estimate ADANIGREEN Adani Green Energy Limited stock forecast parameters by: Heikin-Ashi with Spearman Correlation because of deduct investments in insurance subsidiaries (as per paragraphs 41-43) and significant minority investments in financial institutions (6% Forecasted Return)

NSE:ADANIGREEN Stock Forecast (Buy or Sell) as of 22 Jun 2022 for (n+6 month)

Stock: ADANIGREEN Adani Green Energy Limited

Time series to forecast n: 22 Jun 2022 for (n+6 month)

x axis:Likelihood %
y axis:Potential Impact %
z axis:Color (yellow to green) Technical Analysis %

Stock Forecast Criteria and Models for ADANIGREEN Adani Green Energy Limited

  • We take a different approach to risk weight unrated single-tranche pass-through securities issued by certain government-sponsored agencies based on expected government support. We reflect the better recovery prospects for investors in these securities by using recovery data for senior tranches instead of the junior tranches that we otherwise use for rating levels below 'AAA'. This approach takes into account the ratings on agencies, which reflect their link to the government and their role in supporting the housing market, instead of ratings on the securities, since the securities are not rated. To determine the risk weight for these securities, we use three-year cumulative default rates for securitizations rated at the same level as the issuer.
  • In many securitization transactions, a key step in analyzing the credit quality of the securitized assets is estimating the level of expected losses. The level of expected losses generally corresponds to the amount of credit enhancement associated with the 'B' rating level. Estimation of expected losses generally uses the recent performance of similar assets as a guide. The estimation may include adjustments based on our assessment of current trends, as well as evolving market practices.
  • On a case-specific basis, we may apply the stress test to more than one country, if we consider the entity to have material exposure to two or more countries. When applying the stress test to more than one country at a time, we might assume the stress affects two or more countries at the same time if we consider economic correlation among the countries to be significant. Should an entity fail the stress test, we would cap the rating at the foreign currency rating on the lowest-rated country for which it failed the test. If we determine that the issuer has no material single-country exposure to a country whose sovereign is rated lower than the potential rating, we may not apply a stress test.
  • Collateral and other credit risk mitigation:We account for financial collateral and other credit risk-mitigation techniques through a combination of different risk weights, reduction of exposure amounts, recognition of credit substitution, and standard adjustments. We may lower our risk weights to reflect our view of the effects of credit risk mitigation
  • The rating analysis for structured finance typically includes an analysis of payment structure and cash flow mechanics. This portion of the analysis may involve both assessing the documentation for a security and testing the cash flows using quantitative models.
  • In some instances, when the tranche ratings are unavailable, we may use the regulatory risk weight to infer a rating equivalent for the tranche, and then use the risk weight that pertains to that rating
  • We consider interventions as "extraordinary" when they are issuer-specific, related to the issuer's financial stress, and nonrecurrent in nature. Such intervention could be in the form of support to the issuer from groups or governments or interference with the issuer from groups or governments--for example to protect such groups' or governments' own credit quality--that weaken an issuer.

Assumptions Underlying The Forecast Model for ADANIGREEN Adani Green Energy Limited

If a company has a credit put that causes debt acceleration or collateral posting due to a downgrade of three notches or less, we would include these requirements under uses of liquidity, per paragraph 30 of the liquidity criteria. For example, if a 'BBB' rated company had a credit put that was triggered with a downgrade to speculative grade, we would include the corresponding cash requirement under uses of liquidity. This is because the criteria evaluate a company's liquidity position during times of stress, when potential downgrades are more likely.

Frequently Asked QuestionsQ: Is ADANIGREEN Adani Green Energy Limited stock buy or sell?
A: To assess forecasted working capital outflows for companies with material intra-year working capital requirements (for example, companies in seasonal businesses), we use forecasted peak working capital outflows, per paragraph 32 of the liquidity criteria. For seasonal businesses, in many cases the annual projection might indicate a working capital inflow or neutral working capital, even though there could be material intra-quarter or inter-quarter outflows throughout the year.
Q: Is ADANIGREEN Adani Green Energy Limited stock expected to go up?
A: When determining the cash to be included under sources (A), we use cash that will be available to cover monetary outflows. As a result, we may make haircuts to account for cash trapped overseas (for example, haircut for taxes payable upon repatriation of cash held abroad), apply a discount to lower-quality marketable securities, and exclude restricted cash held for specific purposes.
Q: What is the forecast for ADANIGREEN Adani Green Energy Limited ?
A: If a company has a credit put that causes debt acceleration or collateral posting due to a downgrade of three notches or less, we would include these requirements under uses of liquidity, per paragraph 30 of the liquidity criteria. For example, if a 'BBB' rated company had a credit put that was triggered with a downgrade to speculative grade, we would include the corresponding cash requirement under uses of liquidity. This is because the criteria evaluate a company's liquidity position during times of stress, when potential downgrades are more likely.
Q: What is the consensus rating of ADANIGREEN Adani Green Energy Limited ?
A: The consensus rating for ADANIGREEN Adani Green Energy Limited is 76.
Q: What are the risks of investing ADANIGREEN Adani Green Energy Limited ?
A: We use risk analysis for ADANIGREEN Adani Green Energy Limited because of deduct investments in insurance subsidiaries (as per paragraphs 41-43) and significant minority investments in financial institutions


ADANIGREEN Adani Green Energy Limited
AC Investment Research

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