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Brokerage firm Nuvama Institutional Equities assigned a ‘Buy’ rating on the Inox Wind stock, with a price target of ₹233. This target implies a potential upside of 24% from the current levels.
Inox Wind shares rallied 11.93% to hit an intra-day high of ₹188.45.
The brokerage also said Inox Wind is one of only two wind-EPC suppliers in India, riding tailwinds of RTC, FDRE and C&I demand.Nuvama said that Inox Wind’s revenue per MW was subdued at Rs 4.5 crore per MW due to low EPC sales, which was offset by higher operating profit margin at 22.7% against an estimate of 17% on product heavy mix.
Its profit exceeded expectations of 27%, adjusted for exceptional items (higher other income offset by one-off tax charge).
Order inflow was soft at 231 MW, taking order book to 3.3 GW with a large order pipeline.”Guidance was retained at FY25/26 execution of 800MW/1200MW and 17%-plus OPMs,” Nuvama said.
Inox Wind remains a key player in the C&I segment and benefits from a duopolistic market in wind EPC. OB of 3.3GW (execution over 24 months) lends revenue visibility, according said, adding that it remains positive on the sector and the company.
The brokerage has tweaked its FY25 and FY27 estimates, cutting realisation/MW, factoring lower EPC execution and inching up margin.
Inox Wind CEO Kailash Tarachandani expressed confidence in ramping up execution from Q4 FY25 onwards.“We have been able to deliver another quarter of strong results in Q3 and are confident of delivering significantly higher execution from Q4 FY25 onwards,” Kailash Tarachandani said.
On the charts, the Relative Strength Index (RSI) for Inox Wind is at 52.2. An RSI reading above 70 would mean that the stock is in overbought territory.
Five out of the six analysts that have coverage on Inox Wind maintained a ‘Buy’ rating on the stock while one has a ‘Hold rating.
Shares of Inox Wind Ltd. are currently trading 6.21% higher on Saturday at ₹178.80.
