INOXWIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:15 pm

Fundamental Rating: 3.9

📊 Core Financials

• Revenue & Profit: Quarterly PAT surged from ₹86.7 Cr. to ₹247 Cr. (285% growth), showing strong turnaround momentum.
• Margins: ROE at 10.2% and ROCE at 11.8% indicate moderate efficiency compared to industry leaders.
• Debt: Debt-to-equity ratio at 0.12 reflects very low leverage, strengthening financial stability.
• Cash Flows: No dividend payout, suggesting reinvestment focus for expansion and growth.

💹 Valuation Indicators

• P/E Ratio: 37.3 vs Industry PE of 43.9 → slightly undervalued compared to peers.
• P/B Ratio: Current Price ₹127 / Book Value ₹35.3 ≈ 3.6 (premium valuation).
• PEG Ratio: 0.73 → attractive relative to earnings growth.
• Intrinsic Value: Fairly valued with upside potential supported by strong earnings momentum.

🏢 Business Model & Competitive Advantage

• INOX Wind operates in wind energy solutions, manufacturing turbines and providing turnkey services.
• Competitive advantage lies in renewable energy demand and government push for clean energy.
• Low debt and improving profitability strengthen its long-term outlook.

📈 Entry Zone & Long-Term Guidance

• Entry Zone: Attractive accumulation between ₹120–₹130.
• Long-Term Holding: Suitable for investors seeking exposure to renewable energy growth, with potential for steady compounding.

✅ Positive

• Quarterly profit growth of 285%.
• Low debt-to-equity ratio (0.12).
• DII holdings increased (+0.75%).

⚠️ Limitation

• No dividend yield.
• ROE and ROCE remain moderate compared to industry leaders.
• Stock trading below DMA 50 (₹137) and DMA 200 (₹152), showing weak technical momentum.

📉 Company Negative News

• Decline in FII holdings (-0.41%).
• Weak RSI (32.9) and negative MACD (-5.06) indicate bearish sentiment.

📈 Company Positive News

• Strong quarterly profit surge.
• DII holdings increased, showing domestic institutional support.
• Sectoral demand for renewable energy remains robust.

🏭 Industry

• Industry PE at 43.9 suggests INOX Wind trades at a discount.
• Renewable energy sector benefits from government incentives and global clean energy push.
• Peers trade at higher multiples, highlighting INOX’s relative undervaluation.

🔎 Conclusion

INOX Wind is a promising renewable energy player with strong profit growth, low debt, and attractive PEG valuation.

Despite moderate ROE/ROCE and weak technical momentum, its fundamentals and sectoral demand make it suitable for long-term investors.

Accumulation near ₹120–₹130 is recommended for those seeking exposure to India’s renewable energy growth story.