Inox Wind shares jump 11% to hit one-year high today; here's why

Shares of Inox Wind Ltd rose sharply in Monday's trade to scale their one-year high level. The stock surged 11.49 per cent to hit a 52-week high of Rs 239.70. At this price, the multibagger scrip has gained 167.52 per cent from its one-year low of Rs 89.60, a level seen on February 6, 2023.

The wind energy solutions provider today said its customer, NTPC REL, has announced the successful commissioning of the first part capacity of 50 MW out of 150 MW Dayapar Wind Energy Project Phase-I at Dayapar, Bhuj, Gujarat.

"As part of the order, Inox Wind has supplied and installed 25 nos. DF 113/92 - 2.0 MW capacity Wind Turbine Generators (WTGs) with 113m rotor diameter and 92m hub height. Further, as part of the order, Inox Wind, through its subsidiary Inox Green Energy Services Ltd., will provide comprehensive operation and maintenance (O & M) services for the lifetime of the project (25 years)," it stated.

Inox said Dayapar Wind is NTPC REL's first project as well as the first capacity in India declared commercial under the new Indian Electricity Grid Code and General Network Access regime.

"Once Dayapar Wind complex is fully commissioned, it will add 450 MW to NTPC's existing wind portfolio of 100 MW. NTPC, a key customer for whom Inox Wind is setting up 500 MW of wind capacity, currently has a pipeline of 20 GW+ of renewable energy capacity with a target to reach 60 GW by 2032," the company mentioned.

Kailash Tarachandani, CEO of Inox Wind, said, "NTPC REL's Dayapar project has been an important project for Inox Wind and we are pleased to have delivered the first 50 MW of the project. We are progressing well to complete the balance part of NTPC-I (150 MW) project, as well as deliver NTPC-II (200 MW) and NTPC-III (150 MW) projects. We continue to be a long term and trusted supplier for NTPC and a key partner in their vision of achieving their ambitious Renewable Energy targets."

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 67.16. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 29.77 against a price-to-book (P/B) value of 3.18.

The scrip has an analyst target price of Rs 262, Trendlyne data showed, suggesting a potential upside of 11 per cent in a year. It has a one-year beta of 0.87, indicating low volatility on the counter.

Around 7.51 lakh shares were changing hands on BSE at the time of writing this story. The figure was lower than the two-week average volume of 51.13 lakh shares. Turnover on the counter stood at Rs 17.41 crore, commanding a market capitalisation (m-cap) of Rs 7,711.94 crore.

As of September 2023, promoters held 64.64 per cent stake in the company.

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