Multibagger green energy stock rises 7%, Mcap crosses Rs 20k cr; price targets, technicals and more

Shares of Inox Wind rose for the second straight session amid a stellar rally in the broader market on Tuesday. The multibagger stock climbed 7% to Rs 161.45 in early deals against the previous close of Rs 151.45 on BSE. Market cap of Inox Wind climbed to Rs 20,795 crore on BSE. Total 1.95 lakh shares of the firm changed hands amounting to a turnover of Rs 3.10 crore on BSE.

The renewable energy stock, which hit a record high of Rs 262.10 on September 23, 2024, has lost over 39% in value till date. The green energy stock, which has seen correction in the short term, delivered multibagger returns in the long term. 

Inox Wind shares have a beta of 1.7, indicating high volatility in a year. The green energy stock is trading lower than the 20 day, 30 day, 50 day, 100 day, 150 day, 200 day but higher than the 5 day and 10 day moving averages.

Inox Wind stock rose 555% in two years and gained 442% in three years. In five years, the stock zoomed 2,717%. 

Brokerage firm Systematix has set a price target of Rs 221 for Inox Wind stock, anticipating a significant year-on-year revenue growth of 144% and a quarter-on-quarter increase of 41% in Q4, driven by better deliveries of 3MW Wind Turbine Generators (WTGs). 

The brokerage expects that consolidated EBITDA, excluding other income, will increase by 152% year-on-year and 24% quarter-on-quarter, reaching Rs 257 crore this quarter. It noted that enhanced execution and commissioning in 4QFY25 is expected, fueled by a resurgence in EPC projects and a continued ramp-up in manufacturing activities. Interest costs are predicted to fall 50% year-on-year and 21% sequentially, resulting in an estimated net profit after tax (before minority interest) of Rs 1,887 million, reflecting a 68% quarter-on-quarter rise.

Expressing confidence in the stock, Systematix stated, "We maintain a BUY rating, as the stock currently trades at 21x and 18x FY26E/FY27E P/E ratios. It’s crucial to monitor execution speeds and EPC project completions due to potential risks posed by unexpected policy shifts and lower order inflows."

Another brokerage JM Financial has set a price target of Rs 212 for the stock, recommending a 'Buy' based on projected earnings for FY27. This target corresponds to a P/E ratio of 24x for FY27 estimates. The brokerage expects that execution volume will increase significantly, from 376 MW in FY24 to 1,800 MW by FY27, while the operations and maintenance (O&M) fleet is expected to grow from 3.2 GW in FY24 to 3.6 GW in FY27.

According to JM Financial, “Strong execution momentum, coupled with a growing O&M fleet and in-house EPC capabilities, is expected to drive Revenue and EBITDA CAGR of 77% and 84% from FY24 to FY27.”

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.