Inox Wind share price declined over 2% on Monday amid broader weakness in the Indian stock market. Inox Wind is an integrated wind energy player offering manufacturing of wind turbine generators (IWL) and EPC to O&M.
Brokerage firm JM Financial initiated coverage on Inox Wind shares with a ‘Buy’ rating, and a target price of ₹212 apiece, based on FY27 earnings implying 24x P/E on FY27E. Inox Wind share price target implies an upside potential of more than 23% from Friday’s closing price.
Since January 2023, 33 GW of hybrid project capacities have been awarded, which is estimated to result in WTG (wind turbine generators) demand of at least 20 GW versus 8-10 GW of WTG manufacturing capacity in the country.
With a manufacturing capacity of 2.5 GW and an order book of 3.3 GW, Inox Wind holds inventories of project sites with a potential to install 5 GW of WTGs, providing good revenue growth visibility over the next 2-3 years, JM Financial said.
The Group is attempting to become a total green energy solution provider by expanding as an IPP and setting up a solar value chain. It has set up Inox Neo Energies (pvt IPP platform with a 3GW target by FY27) and Inox Solar Ltd (target of adding 2.5GW/ 4.8GW of solar cell/modules manufacturing capacity by FY27)
JM Financial expects Inox Wind’s execution volume to increase from 376 MW in FY24 to 1,800 MW in FY27, while its O&M fleet is to expand from 3.2 GW in FY24 to 3.6 GW by FY27. 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- FY27.
Delay in signing of PPAs and execution of projects, competition from Chinese players and concerns on service quality remain key risks in the growth journey of the company, said the brokerage firm.
Inox Wind Stock Price Trend
Inox Wind share price gained over 2% in one month, while the renewable energy stock is down 9% year-to-date (YTD). In the past six months, Inox Wind shares declined 20%, while the mid-cap stock gave 15.5% positive returns in one year.
Inox Wind shares have delivered multibagger returns of 610% in two years and more than 1,700% returns in the past five years.
At 12:00 PM, Inox Wind shares were trading 0.41% lower at ₹171.30 apiece on the BSE.
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