INOXWIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of Inox Wind Ltd (INOXWIND), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and incorporated recent analyst reports, operational updates, and technical indicators as of September 2025.

📊 Fundamental Analysis of Inox Wind Ltd

🔍 Core Financials

Profitability

PAT Qtr: ₹86.7 Cr vs ₹190 Cr — sequential decline, but YoY profit up 23.5%.

EPS: ₹2.80 — modest, but improving.

ROE: 10.2%, ROCE: 11.8% — decent returns, especially post turnaround.

Leverage & Liquidity

Debt-to-equity: 0.24 — significantly reduced after ₹2,050 Cr debt repayment; now net cash positive

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Dividend Yield: 0.00% — no payouts yet, reinvestment-focused.

Cash Flow & Stability

FY25 revenue doubled to ₹3,557 Cr (+104% YoY), EBITDA up 182% YoY to ₹757 Cr

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PAT for FY25: ₹438 Cr vs ₹(53) Cr loss in FY24 — major turnaround

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CARE A1+ rating upgrade and sanctioned banking limits of ₹2,200 Cr enhance financial flexibility

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📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 62.5 Overvalued vs industry PE of 49.5

P/B Ratio ~4.6 High — reflects optimism on turnaround

PEG Ratio 1.23 Fair — growth moderately justifies valuation

Intrinsic Value ~₹135–₹145 Slightly below current price — limited upside

🌬️ Business Model & Competitive Edge

Segment Focus: Wind turbine manufacturing, EPC, and O&M services.

Moat: Fully integrated model with backward integration into cranes, transformers, and blade upgrades

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Growth Drivers

Record order book of ~3.1 GW, with 1.5 GW added in FY25

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Entry into solar O&M and launch of 4.X MW platform in FY26

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India’s wind capacity target of 100 GW by 2030 and FY25 additions of 4.15 GW — highest in 7 years

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📈 Technical & Entry Guidance

Current Price: ₹149

DMA 50/200: ₹151 / ₹163 — trading below long-term average, indicating consolidation.

RSI: 52.0 — neutral zone.

MACD: 0.34 — mild bullish crossover.

🎯 Entry Zone

Ideal Buy Range: ₹140–₹145 — near intrinsic value and technical support.

Stop Loss: ₹128

Target: ₹175–₹190 in medium term (Axis Direct target: ₹190)

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🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, deleveraged balance sheet, and sector tailwinds support long-term value.

Buy on dips: Preferably near ₹145 zone.

Growth Triggers: 4.X MW platform, solar expansion, and policy support for hybrid and RTC tenders.

⭐ Fundamental Rating

4.3

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rakesh-jhunjhunwala.in

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tradebrains.in

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