Inox Wind shares are in correction mode since September high; time to buy?
Inox Wind shares: The ongoing correction is part of profit-booking from record high reached in September this year.
- Jan 17, 2025,
- Updated Jan 17, 2025 1:05 PM IST
Shares of Inox Wind Ltd fell 25% in the last three months, logging their highest loss in the short term. The ongoing correction is part of profit-booking from record high reached in September this year. The stock has corrected 38% from its record high of Rs 262.10 reached on September 23, 2024. On the other hand, the multibagger green energy stock rose 531% and 414% in two and three years, respectively.
In terms of technicals, the multibagger stock looks weak as it is trading lower than the 5 day, 10 day, 20 day, 30 day , 50 day, 100 day, 150 day and 200 day moving averages.
The multibagger stock slipped 1% to Rs 164.05 on Friday against the previous close of Rs 165.80 on BSE. Market cap of Inox Wind slipped to Rs 21,388 crore on BSE.
Total 1.44 lakh shares of the firm changed hands amounting to a turnover of Rs 2.37 crore on BSE.
Inox Wind shares have a beta of 1.4, indicating high volatility in a year. The multibagger green energy stock has a RSI of 39.5, indicating its trading neither in the oversold nor in the overbought zone.
Systematix Institutional Equities has a price target of Rs 275 on the Inox Wind stock.
"A stable order book enhances earnings stability and visibility. We remain positive on the sector tailwinds with a massive government push to enhance India's renewable energy (RE) capacity and the growing integration of wind capacities in the RE mix. We have a BUY rating on the stock, which trades 16x/15x FY26E/FY27E P/E. Monitoring the execution pace and EPC completions remain crucial, given that abrupt policy changes and subdued order inflows are risks to the company," said Systematix in its report dated January 16 this year.
Hardik Matalia, Derivative Analyst, Choice Broking said, "Inox Wind is currently trading around Rs 164, maintaining a consistent downward trend characterized by lower highs and lower lows over the past few weeks. Despite occasional bounces from lower levels, the stock has struggled to sustain gains, facing rejection at higher levels. This indicates prevailing bearish sentiment and a lack of strong buying interest at current levels. A key level to watch on the downside is Rs 160. If the stock breaks below this support, it may trigger extended selling pressure, potentially driving prices down to the Rs 145–Rs 135 range."
"Inox Wind is trading below its short-term, medium-term, and long-term exponential moving averages (EMA), a clear signal of prevailing weakness. Recent rejections from its short-term EMA, despite minor bounces, emphasize the difficulty in regaining positive momentum. This technical structure indicates that the stock is not yet in a position to stage a meaningful recovery. Fresh buying is not advised at current levels due to the lack of a confirmed reversal. On the upside, a sustainable move above Rs 190 could signal a trend reversal, providing a potential entry point for buyers," added Matalia.
A R Ramachandran, SEBI registered Independent analyst says, "Inox Wind stock price is bearish on the Daily charts with strong resistance at Rs 173. A Daily close below the support of Rs 163 could lead to a target of Rs 144 in the near term."
ICICI Securities assigned a buy call on Inox Wind with a target price of Rs 245 in December 2024.
"The INOXGFL group is spreading its wings beyond WTG (and related services) to become a forward-integrated comprehensive renewables player. The vision of the group is to be present across the value chain in India's pursuit for energy transition. The group aims to leverage the solid foundation of Inox Wind to piece together the rest of the puzzle," said the brokerage.
Inox Wind is an India-based integrated wind energy solutions provider. The company is engaged in the business of manufacture and sale of wind turbine generators (WTGs). It also provides erection, procurement and commissioning (EPC), operations and maintenance (O&M) and common infrastructure facilities services for WTGs and wind farm development services.
Shares of Inox Wind Ltd fell 25% in the last three months, logging their highest loss in the short term. The ongoing correction is part of profit-booking from record high reached in September this year. The stock has corrected 38% from its record high of Rs 262.10 reached on September 23, 2024. On the other hand, the multibagger green energy stock rose 531% and 414% in two and three years, respectively.
In terms of technicals, the multibagger stock looks weak as it is trading lower than the 5 day, 10 day, 20 day, 30 day , 50 day, 100 day, 150 day and 200 day moving averages.
The multibagger stock slipped 1% to Rs 164.05 on Friday against the previous close of Rs 165.80 on BSE. Market cap of Inox Wind slipped to Rs 21,388 crore on BSE.
Total 1.44 lakh shares of the firm changed hands amounting to a turnover of Rs 2.37 crore on BSE.
Inox Wind shares have a beta of 1.4, indicating high volatility in a year. The multibagger green energy stock has a RSI of 39.5, indicating its trading neither in the oversold nor in the overbought zone.
Systematix Institutional Equities has a price target of Rs 275 on the Inox Wind stock.
"A stable order book enhances earnings stability and visibility. We remain positive on the sector tailwinds with a massive government push to enhance India's renewable energy (RE) capacity and the growing integration of wind capacities in the RE mix. We have a BUY rating on the stock, which trades 16x/15x FY26E/FY27E P/E. Monitoring the execution pace and EPC completions remain crucial, given that abrupt policy changes and subdued order inflows are risks to the company," said Systematix in its report dated January 16 this year.
Hardik Matalia, Derivative Analyst, Choice Broking said, "Inox Wind is currently trading around Rs 164, maintaining a consistent downward trend characterized by lower highs and lower lows over the past few weeks. Despite occasional bounces from lower levels, the stock has struggled to sustain gains, facing rejection at higher levels. This indicates prevailing bearish sentiment and a lack of strong buying interest at current levels. A key level to watch on the downside is Rs 160. If the stock breaks below this support, it may trigger extended selling pressure, potentially driving prices down to the Rs 145–Rs 135 range."
"Inox Wind is trading below its short-term, medium-term, and long-term exponential moving averages (EMA), a clear signal of prevailing weakness. Recent rejections from its short-term EMA, despite minor bounces, emphasize the difficulty in regaining positive momentum. This technical structure indicates that the stock is not yet in a position to stage a meaningful recovery. Fresh buying is not advised at current levels due to the lack of a confirmed reversal. On the upside, a sustainable move above Rs 190 could signal a trend reversal, providing a potential entry point for buyers," added Matalia.
A R Ramachandran, SEBI registered Independent analyst says, "Inox Wind stock price is bearish on the Daily charts with strong resistance at Rs 173. A Daily close below the support of Rs 163 could lead to a target of Rs 144 in the near term."
ICICI Securities assigned a buy call on Inox Wind with a target price of Rs 245 in December 2024.
"The INOXGFL group is spreading its wings beyond WTG (and related services) to become a forward-integrated comprehensive renewables player. The vision of the group is to be present across the value chain in India's pursuit for energy transition. The group aims to leverage the solid foundation of Inox Wind to piece together the rest of the puzzle," said the brokerage.
Inox Wind is an India-based integrated wind energy solutions provider. The company is engaged in the business of manufacture and sale of wind turbine generators (WTGs). It also provides erection, procurement and commissioning (EPC), operations and maintenance (O&M) and common infrastructure facilities services for WTGs and wind farm development services.