Inox Wind's Solid Stock Price Performance: What's Behind the 48% Growth Over Last One Year?
Mumbai, February 20, 2025 - Inox Wind's stock price has shown a remarkable 48% growth over the last one year, outperforming the market return of 8.6%. The question on everyone's mind is what's driving this impressive performance?
To understand the situation better, it's essential to delve into Inox Wind's business, project pipeline, projected revenues in future, and credit rating. Additionally, analyzing the guidance provided by the company, credit rating agency views, and analysts' opinions will shed more light on why Inox Wind is experiencing a strong stock price performance.
Inox Wind's Business
Inox Wind is part of INOXGFL Group, which has been in operation for over nine decades. The INOXGFL Group focuses primarily on chemicals and renewable energy. With over 13 years of operational track record, Inox Wind provides end-to-end turnkey wind energy solutions, including equipment supply to the market.
The company boasts a manufacturing capacity of 2.5GW across four facilities in Gujarat, Madhya Pradesh, and Himachal Pradesh. Its product portfolio includes 2MW and 3MW Wind Turbine Generators (WTGs), as well as a secured license for 1.2GW in FY27. The company's efforts have led to significant growth, making it one of the leading players in India's renewable energy sector.
Projected Revenues and Credit Rating
According to Inox Wind's guidance, the company aims to execute 800MW in FY25 and 1.2GW in FY26. Additionally, management foresees a target execution of 2GW for FY27. Analysts from Systematix Institutional Equities have set a target share price of Rs 275 based on their estimates for Inox Wind's revenue growth.
Currently, the company sports an attractive valuation of around 8.6 times its book value of Rs 20.5 compared to peers Suzlon Energy and Adani Green Energy at higher valuations.
Analysts' Views
Systematix Institutional Equities recently recommended a "Buy" rating on Inox Wind's shares with a target price of Rs 275, based on their estimates for the company's revenue growth in 2026.
ICICI Securities also expressed confidence in Inox Wind's prospects by recommending a "Buy" rating and setting a target price of Rs 245. Analysts' views suggest that Inox Wind has solid potential for further growth due to its robust project pipeline, execution capabilities, and guidance from management.
Conclusion
As we conclude our analysis of India's renewable energy sector leader, it becomes clear that Inox Wind's impressive stock performance is backed by a solid track record, strong execution capabilities, and attractive valuations. However, investors must maintain a watchful eye on the company's growth prospects and assess whether this opportunity can deliver value in line with expectations.
For investors looking to explore potential growth prospects in India's renewable energy sector, Inox Wind will undoubtedly be worth considering further analysis and discussions from leading financial institutions.