Hat-trick of record highs for multibagger green energy stock; buy, sell or hold?

Shares of Inox Wind Ltd are on a record run this week. The multibagger stock hit record high for the third straight session on Thursday. Inox Wind stock touched record highs of Rs 251.15 on September 12, Rs 250.45 on September 11 and Rs 246 on September 10 this year. With a series of record highs this week, Inox Wind stock is overbought on charts at a relative strength index (RSI) of 74.9.

In the previous session, Inox Wind stock closed 3.42% higher at Rs 246.60 against the previous close of Rs 238.45 on BSE. Market cap of Inox Wind rose to Rs 32,151 crore on BSE. The stock has gained 410% in a year and risen 583% in two years. The multibagger stock has climbed 108% in six months.

Total 6.86 lakh shares of the firm changed hands amounting to a turnover of Rs 16.92 crore on BSE.

Inox Wind shares have a beta of 1.4, indicating high volatility in a year. The multibagger green energy stock is trading higher than the 5 day, 10 day, 20 day, 30 day , 50 day, 100 day, 150 day and 200 day moving averages.

Ameya Ranadive, CMT CFTe, Sr Technical Analyst, StoxBox is bullish on the stock but also advises caution.

"The stock is currently testing immediate resistance near Rs 251, and a breakout above this level could push the price toward Rs 270- Rs 275 in the short term. Given its strong position above the 20-day EMA at Rs 222, this level will act as crucial support. With the Relative Strength Index (RSI) sitting in overbought territory at 74.89, the stock is experiencing elevated buying pressure, which suggests the potential for a brief consolidation. However, the directional movement indicator (DMI) points to continued bullish strength," said Ranadive.

"Traders with short-term outlook could aim for a target of Rs 275, with a recommended stop-loss placed just below Rs 220, ensuring a favorable 1:2 risk-reward ratio. For mid-term investors, further gains toward Rs 350 could be in play, supported by strong technicals. While the uptrend remains intact, cautious traders should monitor support at Rs 198 (50-day EMA) for any potential pullbacks," added Ranadive.

Axis Securities is bullish on prospects of the debt-free stock. It has fixed a price target of Rs 200  on the stock.

"We assign a target P/E multiple of 35 times vs. 30 times previously to our FY26 EPS estimate, given the tailwinds in the wind sector. After adjusting for the minority stake in Inox Green Energy Services Ltd. and Resco Global (7%), we arrive at a price target of Rs 270  per share (from Rs 205/share). We maintain a BUY rating on the stock," said the brokerage.

The brokerage listed out the following risks to its estimates and price target.

1. Delay in ramp-up of execution.

2. Delay or under-subscription of the auctions could result in a slowdown of wind turbine markets.

AR Ramachandran, Independent SEBI Research Analyst said, "Inox Wind stock price is  bullish but also overbought on the daily charts with next resistance at Rs 257. Investors should keep booking profits as daily close below the support of Rs 236 could lead to a fall till Rs 204 in the near term."

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.