Synopsis:
Inox Wind shares are in focus after Motilal Oswal has given a Buy call on the stock, predicting a further upside of 54% from its current level.
With a market capitalization of Rs 23,599 crore, the shares of Inox Wind Ltd are currently trading at Rs 136 per share, representing a decline of 47 percent from its 52-week high of Rs 258.43 per share. Over the past five years, the stock has delivered a multibagger return of 1,240 percent.
Analyst Comments
Leading brokerage house, Motilal Oswal, has assigned a Buy call on the stock with a target price of Rs 210 per share, signalling an upside of 54 percent from its current level.
The brokerage cited that Inox Wind Ltd is in a prime spot to take advantage of India’s rapidly growing wind energy sector. It has a solid order book of 3.2GW that guarantees revenue visibility for at least the next couple of years.
The company is a vertically integrated player, meaning it not only manufactures wind turbines but also handles project execution and operations and maintenance (O&M) services. Its O&M capacity is projected to nearly triple, jumping from 3.5GW in FY25 to 9.6GW by FY28, which will create a reliable stream of recurring revenue.
Additionally, Inox Wind is expanding beyond just wind energy. They’re diving into solar, hybrid energy projects, and even specialized services like crane operations and transformer manufacturing, broadening their market presence and service offerings.
Plus, government initiatives like the draft RLMM policy, which requires local sourcing of essential wind turbine components, are set to give domestic players like Inox Wind a significant edge by leveling the playing field against Chinese competitors.
On top of that, the company is undergoing some restructuring, including a merger with Inox Wind Energy (IWEL) and the demerger of certain divisions, which has helped cut down debt by about Rs 2000 crore.
With India aiming for 100GW of installed wind capacity by 2030 and annual installations on the rise, Inox Wind is strategically positioned to seize this opportunity. All in all, with supportive government policies, expanding capacity, and operational synergies, the company is set for strong growth ahead.
Inox Wind Ltd is in the business of manufacturing wind turbines, towers, and blades at its facilities located in Gujarat, Himachal Pradesh, and Madhya Pradesh. They provide comprehensive wind energy solutions, covering everything from site selection to connecting to the grid, and they also offer operations and maintenance services. The company generates revenue through turbine sales, project execution, maintenance, and power generation via Power Purchase Agreements (PPAs).
Written by Satyajeet Mukherjee
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