Energy Development Co. Ltd. (ENERGYDEV) AI Stock Analysis

• Market Cap: ₹712.50M
• Dividend Yield: N/A
• Average Volume (3M): 9.91K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.19
• Revenue Growth: 19.56%
• EPS Growth: -3615.56%
• Country: IN
• Employees: 64
• Sector: Energy
• Sector Strength: 52
• Industry: Regulated Electric
• EPS (TTM): 0.27
• Shares Outstanding: 47,500,000
• 10 Day Avg. Volume: 13,729
• 30 Day Avg. Volume: 9,915
• PEG Ratio: >-0.01
• Price to Book (P/B): 20.61
• Price to Sales (P/S): 2.50
• P/FCF Ratio: 25.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹15.00 ▼(-26.83% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is driven primarily by weak financial performance (losses, declining revenue, and high leverage), reinforced by bearish technical signals with the price below key moving averages and negative MACD. Valuation is only moderate (P/E 17.31) and does not materially offset the fundamental and trend risks.

Positive Factors

Operating cash generation

The company reports positive operating cash flow, a durable indicator that core regulated operations generate cash despite accounting losses. Sustained operating cash inflows support near-term liquidity, fund maintenance capex, and reduce immediate refinancing pressure, providing a foundation to stabilize operations and pursue modest investments while management addresses profitability gaps.

Positive EBIT margin

A positive EBIT margin signals that operating performance before non-operating items and tax is profitable, suggesting core generation and service activities can cover operating costs. In a regulated-electric business this operational profitability indicates structural cost coverage and potential to restore net profitability if non-operating losses, financing costs, or one-off items are reduced.

Historical revenue and EPS growth metrics

Reported multi-period growth metrics imply the company has delivered meaningful top-line and earnings improvement in recent measured periods. If these drivers reflect recurring factors (tariff adjustments, contract wins, demand recovery), they provide a demonstrable capacity to expand scale and leverage fixed-cost coverage, supporting medium-term recovery prospects when paired with cash-generation and operational margins.

Negative Factors

High leverage

Significant leverage materially raises financial risk: interest obligations and refinancing needs limit strategic flexibility and increase vulnerability to rate moves or revenue shortfalls. With a low equity base, losses erode shareholder buffer faster, constraining ability to raise capital and making sustained investment or recovery initiatives more difficult without deleveraging or equity infusion.

Negative net income and declining revenue

Persistently falling revenues combined with net losses undermine retained earnings and growth capacity. For a regulated electric provider, declining sales or margins can signal structural demand issues, pricing pressures, or inefficiencies; continued revenue contraction will worsen profitability, reduce reinvestment ability, and lengthen recovery timelines absent corrective measures.

Weak free cash flow trajectory

A declining free cash flow trend limits capacity to service debt, invest in grid upkeep, or fund growth projects. When FCF falls while leverage remains high and net income is negative, the company faces sustained pressure on liquidity and capital allocation choices. This structural cash constraint can force asset sales, higher borrowing, or deferred maintenance, impairing long-term resilience.

Energy Development Co. Ltd. Business Overview & Revenue Model

Company Description

Energy Development Company Limited generates and sells electricity from water and wind in India. The company operates through three divisions: Generating, Contract, and Trading. The Generating division generates and sells power to various electricity boards. It has 15 MW of renewable energy capacity and has 270 MW of hydroelectric projects at various stages of development. This division owns and operates 9 MW and 6 MW Harangi hydro-electric power plants in the district of Kodagu, as well as two wind projects of 1.5 MW each in the cities of Hassan and Chitradurga in Karnataka; and a 7 MW Ullunkal hydroelectric power project and 15 MW Karikayam hydroelectric power project in the state of Kerala. This division also executes various hydroelectric projects in the state of Arunachal Pradesh. The Contract division develops energy and infrastructure projects for other developers. It offers engineering, consultancy, and project management services for hydroelectric power plants; engineering, procurement, and construction services; third party power plant operations and maintenance services; and rehabilitation, renovation, modernization, and uprating consultancy and services for ageing hydro power plants. This division is also involved in the cogeneration or the combined generation of heat and power from a single fuel source, such as bagasse. The Trading division trades in power equipment, metals, etc. Energy Development Company Limited was incorporated in 1995 and is based in Kolkata, India.

How the Company Makes Money

Energy Development Co. Ltd. Financial Statement Overview

Summary

Weak fundamentals: the income statement shows declining revenue, a sharp drop in gross margin, and negative net income. The balance sheet is leveraged with a high debt-to-equity ratio and negative ROE. Cash flow is mixed—operating cash flow is positive, but free cash flow has decreased and does not sufficiently offset profitability and leverage concerns.

Income Statement

The income statement reveals a challenging financial period for Energy Development Co. Ltd. with declining revenue and profitability. The gross profit margin has significantly decreased from previous years, and the company reported a negative net income in the latest year, indicating substantial losses. The revenue growth rate is negative, showing a downward trend in sales. The EBIT margin remains positive, but the EBITDA margin is negative, highlighting operational inefficiencies or high non-operating expenses.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage and potential financial risk. The return on equity is negative due to the net losses, which is concerning for shareholders. The equity ratio is low, reflecting a high reliance on debt financing. Overall, the balance sheet suggests financial instability with a need for improved equity and reduced liabilities.

Cash Flow

Cash flow analysis indicates some positive aspects, such as a positive operating cash flow, which suggests that core business operations are generating cash. However, the free cash flow has decreased, and the free cash flow to net income ratio is unfavorable due to negative net income. The operating cash flow to net income ratio is positive, indicating that cash flow generation is better than reported earnings, but the overall cash flow position remains weak.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	418.43M	327.62M	300.09M	374.44M	429.83M	312.95M
Gross Profit	333.99M	141.38M	283.22M	359.13M	413.71M	291.89M
EBITDA	-517.90M	-582.48M	179.54M	293.91M	331.63M	185.49M
Net Income	-911.42M	-972.64M	-21.68M	42.14M	95.55M	-47.76M
Balance Sheet
Total Assets	1.98B	1.92B	3.50B	3.56B	3.53B	3.46B
Cash, Cash Equivalents and Short-Term Investments	233.63M	143.27M	179.75M	178.45M	154.59M	20.49M
Total Debt	1.43B	1.47B	1.54B	1.58B	1.60B	1.63B
Total Liabilities	1.88B	1.94B	2.56B	2.59B	2.62B	2.63B
Stockholders Equity	161.57M	39.68M	1.01B	1.03B	982.82M	894.25M
Cash Flow
Free Cash Flow	146.34M	32.65M	102.86M	189.83M	280.10M	151.61M
Operating Cash Flow	146.66M	78.41M	103.02M	189.89M	281.06M	152.93M
Investing Cash Flow	-14.68M	-44.86M	-11.34M	-52.20M	-106.48M	-42.06M
Financing Cash Flow	-100.54M	-52.76M	-126.89M	-126.31M	-147.97M	-111.60M

Energy Development Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ENERGYDEV, the sentiment is Negative. The current price of 20.5 is above the 20-day moving average (MA) of 16.20, above the 50-day MA of 17.46, and above the 200-day MA of 19.97, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 33.42 is Neutral, neither overbought nor oversold. The STOCH value of 31.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ENERGYDEV.

Energy Development Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ZODIAC	63 Neutral	₹3.52B	22.77	―	0.25%	64.71%	48.65%
GULFPETRO	62 Neutral	₹1.46B	8.42	―	―	3.59%	10.55%
URJA	48 Neutral	₹4.66B	404.42	―	―	33.07%	4.57%
ENERGYDEV	45 Neutral	₹712.50M	17.31	―	―	19.56%	-3615.56%