Inox Wind Share Price / Stock Highlights August 13, 2024: Inox Wind shares hit 52-week high, bags order for 51 MW equipment supply

Inox Wind shares closed at ₹217.60 on the NSE, higher by 4.34%.

On the BSE, the stock closed 5.28% higher at ₹219.50.

Shares of Inox Wind rose 3.98% on the NSE, trading at ₹216.84 as at 3.07 pm.

Inox Wind shares surge 6.16% on the NSE, trading at ₹221.40 as at 1.05 pm.

Inox Wind (INXW) posted strong Q1FY25 results with operating margin at 21.3% (estimate 15%) as sales mix was heavier on WTG supply while EPC costs will get booked in the future. Hence, full-year margins are likely to normalise to 16–17%. Adj. PAT at INR518mn, thus, beat our estimate by 35%. INXW executed 140MW (in-line), implying sales growth of 83% YoY to INR6.4bn (estimate INR6.7bn). Robust OI at 611MW (2.4x YoY; FY25E OI at 2.8GW) bulked up OB to 2.9GW. INXW is one of the two wind-EPC suppliers in India, riding tailwinds of RTC + FDRE + C&I demand. We are tweaking FY25–27E, raising margins and lowering realisation/MW, yielding a TP of INR201 (15% upside potential) at 30x FY27E WTG EPS + DCF of O&M; reiterate ‘BUY’.

Inox Wind (INOX) has reduced its external debt to zero with fresh infusion from promoters in Q1FY25. Thus, its concerns on debt are now a thing of the past. Its business fundamentals have never looked better with bulging orderbook of 2.9GW (a high in its history). Moreover, it received 0.6GW of orders during Q1 from a bevy of customers, reducing the concerns on its dependence on a single client. Its attempt to set the wheels on the right path has started yielding results. In Q1FY25 it all came together – execution ramped up to 140MW (vs 66 MW YoY). As a result, revenue grew 2x, EBITDA margin improved to 21.3% and PAT stood at INR 472mn (vs loss last year). We expect execution of 0.75GW/1.2GW for FY25/26E – drawing comfort from 2.9GW orderbook. We reiterate BUY with a revised TP of INR 240 (vs INR 180 earlier).

Outlook: With a robust order book, strong execution capability, technological readiness, and net interest-free debt, along with the government’s renewed focus on wind energy, Inox Wind is wellpositioned to build on its growth momentum. We are revising our EBITDA margin forecast upwards for FY25/26E to 17% each, from the previous estimate of 15%, factoring in potential margin gains from higher operating leverage due to improved order execution. Valuation & Recommendation: We assign a target P/E multiple of 30x to our FY26 EPS estimate. After adjusting for the promoter’s fund infusion and minority stake in Inox Green Energy Services Ltd., we arrive at a TP of Rs. 205/share. We maintain a BUY rating on the stock, with a potential upside of 18% from the CMP.

Inox Wind shares traded at ₹223.01 on the NSE, up 6.93% as at 11.38 am.

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Inox Wind Limited (IWL) on Friday posted a ₹50 crore profit after tax during the June quarter on account of a surge in income.

It had reported a loss of ₹65 crore in the April-June quarter of the preceding financial year, the company said in an exchange filing.

The company’s total revenue surged 85 per cent to ₹651 crore from ₹352 crore in the year-ago period.

Devansh Jain, Executive Director, INOXGFL Group, said “The hard work of last several years has started to yield results. Also, IWL’s parent, IWEL has infused ₹900 crore recently, making the company net cash positive and strengthening the balance sheet to capitalise on the multidecadal opportunity in the Indian wind sector.” The company has an orderbook of around 2.9 gigawatt, IWL CEO Kailash Tarachandani said adding the company won orders of 611 MW in the ongoing FY25.

Inox Wind shares have hit a 52-week high on the NSE and BSE at ₹236.95 and ₹237, respectively.

Inox Wind Limited (IWL), wind energy solutions provider, has bagged an order for 51 MW from Everrenew Energy Private Ltd, a leading C&I player. 

Shares rally 11.99% to trade at ₹233.56 on the NSE as at 9.28 am.