Inox Wind shares slip for four sessions, give up record high; what’s next?

Shares of multibagger Inox Wind Ltd have lost 15.58% from their record high in five sessions. The green energy stock, which hit an all-time high of Rs 540 on January 3 has been falling for the last four sessions. Inox Wind shares closed at Rs 516.25 on January 4. They ended 4.05% lower at Rs 455.85 on January 10, slipping 11.69% in four sessions. However, the stock has delivered 117.54% returns in the last three months. In comparison, BSE 500, the parent index has surged 12.56% during the period. In the long term too, the stock has delivered stellar returns to investors.  

It has delivered 339% returns to investors in a year and zoomed 585% in three years.  

The stock ended in the red in the last session, with its market cap falling to Rs 14,858 crore. Total 3.80 lakh shares changed hands amounting to a turnover of Rs  17.04 crore on BSE.     

The stock hit a 52-week low of Rs 89.60 on February 6, 2023 and a 52 week high of Rs 540 on January 3, 2024.     

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Inox Wind shares have a beta of 0.7, indicating very low volatility in a year.   

Systematix Institutional Equities expects the green energy stock hit a price target of Rs 575 in a year.   

"Over the last four months, Inox Wind raised Rs 1,300 crore through the promoter entities’ equity stake sale in the company, the proceeds of which will majorly be used to pay off interest-bearing debt. The drop in interest costs will help boost its earnings over the forecasted period. We introduce FY26 estimates and revise our FY24E/FY25E EBITDA by 9%/+15% based on execution assumptions and the mix of 2MW/3MW WTGs. We expect Inox Wind to execute 450MW/600MW/800MW orders in FY24/FY25/FY26. We value Inox Wind at 30x FY26E to arrive at a revised target price of Rs 575/share," said the brokerage.   

Shiju Koothupalakkal, Technical Research Analyst, Prabhudas Lilladher expects the stock to hit Rs 555 mark in the short term.  

“The stock has witnessed a spectacular bull run in the last two months gaining from Rs 190 zone and currently making a high of Rs 540 levels where it has found some resistance. The indicators have attained their highly overbought zone and some cooling off cannot be ruled out with near-term support visible at around Rs 465-470 zone. On the upside , there is some steam left with 555 level as the near-term target visible. A short correction would be healthy for the stock and once if at all, there is any correction and sustains near Rs 470 zone, then we can anticipate for second round of momentum for further rise,” said Koothupalakkal.  

Abhijeet from Tips2trades said, “Inox Wind is extremely overbought and bearish on the Daily charts with strong resistance at 547. A daily close below support of 500 could lead to a target of Rs 439 in the near term.”

In terms of technicals, the relative strength index (RSI) of the stock stands at 56.2, signaling it's trading in the neither in the overbought nor in the oversold zone. The stock is trading lower than the 5 day, 10 day, 20 day but higher than the 30 day , 50 day, 100 day , 150 day and 200 day moving averages.     

Inox Wind's consolidated net loss narrowed to Rs 26.84 crore in the September 2023 quarter due to higher revenues. The firm reported a loss of Rs 132.9 crore in the September 2022 quarter. The company posted a consolidated net loss of Rs 64.59 crore in Q1 FY24.  

Revenue from operations rose to Rs 384.40 crore in Q2 of the current fiscal from Rs 112.1 crore in the same period a year ago.  

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.    

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