Inox Wind shares– Inox Wind Ltd. reported almost double its revenues for the June quarter; the company’s margin increased, execution improved, and order book grew as it recorded first-quarter profits compared to a loss in the same period last year. With new funding from promoters, Inox Wind has eliminated its external debt, and analysts are generally optimistic about the company’s future. On the other hand, their price estimates for Inox Wind imply that the company might be pricing in most positives. Inox Wind shares surged 329% this year
“We give our FY26 EPS projection a target P/E multiple of thirty times. We come at a target price of Rs 205 per share after accounting for the promoter’s money injection and a minority holding in Inox Green Energy Services Ltd., according to Axis Securities.
Inox Wind has surpassed the target set by Axis Securities, as the stock increased 3.50 percent to Rs 215.80 on Tuesday. Over the previous 12 months, the multibagger stock has increased by 329%.
Nuvama’s Insights on Inox Wind’s Q1FY25 Performance
According to Nuvama, Inox Wind reported impressive Q1FY25 results, with an operating margin of 21.3% compared to an expected 15% since the company’s sales mix was more heavily weighted toward WTG supply. It anticipates booking EPC costs in the future.
Therefore, full-year margins should return to a normal range of 16–17%. Adjusted PAT exceeded our forecast by 35%, coming in at Rs 51.80 crore. Inox Wind completed 140 MW, according to projections. It suggests an 83% YoY increase in sales at Rs 640 crore (expect Rs 670 crore). Order book was bulked up to 2.9GW by a robust order inflow of 611MW (2.4x YoY; FY25E OI at 2.8GW),” the statement stated.
This brokerage adjusted their margin projections for FY25–27. Nuvama proposed a target price of Rs 201 and reduced its revenue per MW. Additionally, this objective was below the most recent closing price of Inox Wind.
In Q1FY25, Inox Wind obtained fresh funds from promoters to pay off all of its external debt. As a result, its debt worries are now unfounded. With a 2.9GW orderbook, which is a record high for the company, its business fundamentals have never looked better. Furthermore, 0.6GW of orders from a wide range of clients were received during Q1, allaying worries about its reliance on a single customer. Its efforts to put the wheels back in motion have begun to show results, according to ICICI Securities.
Given a 2.9GW order book, this firm forecasts 0.75GW in FY25 and 1.2GW in FY26. “We maintain a BUY recommendation, raising the target price to Rs 240 from Rs 180,” it noted.
Inox Wind: Should you buy it?
Analysts are enthusiastic about Inox Wind’s future prospects, especially now that the company’s external debt has been lowered to zero thanks to a fresh cash infusion from its promoters.
Some believe the stock has already reflected much of this good momentum.
Axis Securities, for example, has set a price objective of Rs 205 per share based on a P/E multiple of 30 times its FY26 EPS forecast. However, the stock reached this target on Tuesday, trading at Rs 215.80, a 329% rise over the previous year.
Nuvama also highlighted the company’s strong Q1FY25 performance, which included an operating profit of 21.3% versus an estimate of 15%, owing mostly to a sales mix that favoured wind turbine generator (WTG) supplies.
The brokerage forecasts that full-year margins would return to 16-17% as EPC (engineering, procurement, and construction) expenditures are recognized later.
Nuvama reduced its FY25-27 margin expectations and set a target price of Rs 201, which is lower than the stock’s current trading levels.
ICICI Securities is more optimistic, noting that Inox Wind’s low debt and solid order book of 2.9GW—the company’s largest in history—position it well for future expansion.
The brokerage forecasts the company to complete 0.75GW in FY25 and 1.2GW in FY26, citing strong order intake. ICICI Securities reiterated its ‘BUY’ recommendation, upping the target price to Rs 240 from Rs 180.
For retail investors, the future for Inox Wind is still bright, although the stock’s recent price gains must be taken into account.
Brokerages have emphasized that while the fundamentals are strong and the company is on a decent growth trajectory, the present price may already include most of the expected upside.
Inox Wind fundamentals and stock performance
Inox Wind shares rose up to 19.40%, reaching a 52-week high of ₹208 per share on the BSE during Monday’s intraday trading. This increase comes after the company’s financial report for the April-June quarter of fiscal year 2024-25 (Q1FY25).
The wind energy solutions company increased sales by 83.18 percent year on year, reaching ₹638.81 crore in Q1FY25. The company posted a profit before tax of ₹48.01 crore for the quarter, a significant improvement from the loss of ₹63.49 crore reported in Q1FY24.
In Q1FY25, consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) increased dramatically to ₹157 crore from ₹35 crore in the same quarter last year.
Inox Wind, best known for its wind turbine generators (WTGs), offers a variety of services, including erection, procurement, and commissioning (EPC), operations and maintenance (O&M), wind farm construction, and common infrastructure facilities for WTGs.
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