Inox Wind Ltd’s shares surged over 4% to a fresh record high of Rs 245, driven by high trading volumes and a broader market rally. A total of 2 crore shares were traded on the BSE and NSE combined, exceeding the one-week average volume of 1 crore shares.
Company Overview
Inox Wind is a key player in the wind energy sector, specializing in the manufacture and sale of wind turbine generators (WTGs). The company also offers services including erection, procurement, and commissioning (EPC), operations and maintenance (O&M), and infrastructure for wind farm development.
Brokerage Insights
Axis Securities recently reaffirmed its bullish stance on Inox Wind, citing the company’s debt-free status. The brokerage has a ‘buy’ rating with a target price of Rs 200, noting that Inox Wind is well-positioned to sustain its growth momentum.
Recent Developments
Inox Wind’s EPC projects arm, Resco Global, has approved a Rs 350 crore equity raise from prominent investors. This funding will enhance Resco’s business offerings and leverage strong growth trends in India’s wind sector. Axis Securities estimates Resco’s valuation at Rs 5,000 crore, with the fundraise implying a 7-8% stake dilution.
Additionally, Inox Green Energy Ltd’s non-core substation assets will be demerged and merged into Resco Global, creating synergies and preparing for the automatic listing of Resco Global. This move aims to streamline Inox Green Energy’s structure, potentially unlocking additional value.
Market Analysis
While Inox Wind’s stock is performing strongly, it is also considered overbought on daily charts, with the next resistance level at Rs 257. AR Ramachandran, an Independent SEBI Research Analyst, advises investors to consider booking profits, noting that a daily close below Rs 236 could lead to a decline to Rs 204 in the near term.
As of 2:16 pm, Inox Wind shares were trading 3.9% higher at Rs 243.25 on the NSE. The stock has risen about 85% this year, significantly outperforming the Nifty’s 16% return. Over the past 12 months, Inox Wind has surged 366%, more than quadrupling investors’ capital, compared to Nifty’s 29% increase during the same period.