INOXWIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | INOXWIND | Market Cap | 16,280 Cr. | Current Price | 94.2 ₹ | High / Low | 198 ₹ |
| Stock P/E | 25.1 | Book Value | 35.3 ₹ | Dividend Yield | 0.00 % | ROCE | 11.8 % |
| ROE | 10.2 % | Face Value | 10.0 ₹ | DMA 50 | 96.5 ₹ | DMA 200 | 117 ₹ |
| Chg in FII Hold | 0.44 % | Chg in DII Hold | 0.59 % | PAT Qtr | 126 Cr. | PAT Prev Qtr | 247 Cr. |
| RSI | 44.9 | MACD | 0.12 | Volume | 52,24,883 | Avg Vol 1Wk | 75,93,171 |
| Low price | 74.9 ₹ | High price | 198 ₹ | PEG Ratio | 0.49 | Debt to equity | 0.12 |
| 52w Index | 15.7 % | Qtr Profit Var | 96.0 % | EPS | 4.03 ₹ | Industry PE | 34.7 |
📊 Core Financials: Inox Wind (INOXWIND) shows moderate fundamentals. ROCE at 11.8% and ROE at 10.2% indicate average capital efficiency compared to industry leaders. Debt-to-equity ratio of 0.12 reflects manageable leverage. Quarterly PAT of ₹126 Cr. declined from ₹247 Cr., showing volatility. EPS of ₹4.03 is relatively low, limiting earnings strength.
💰 Valuation Indicators: Current P/E of 25.1 is below the industry average of 34.7, suggesting relative undervaluation. P/B ratio of ~2.67 (94.2/35.3) is reasonable. PEG ratio of 0.49 indicates growth potential is underpriced. Dividend yield of 0% shows no income return for shareholders. Intrinsic value suggests cautious optimism but requires consistent earnings growth.
🏢 Business Model & Competitive Advantage: Inox Wind operates in renewable energy, focusing on wind turbine manufacturing and services. Its competitive advantage lies in India’s growing renewable energy demand and government support for clean energy. However, profitability remains inconsistent, and scale compared to global peers is limited.
📈 Entry Zone: RSI at 44.9 and MACD near neutral suggest consolidation. Current price of ₹94.2 is close to support (~₹74.9). Entry between ₹85–₹95 is favorable for investors seeking exposure to renewable energy with higher risk tolerance.
⏳ Long-Term Holding Guidance: While the renewable energy sector offers growth opportunities, Inox Wind’s financial volatility and lack of dividends make it suitable only for long-term investors willing to accept higher risk for potential upside.
Positive
- 🌟 PEG ratio of 0.49 indicates undervalued growth potential
- 🌟 Manageable debt-to-equity ratio (0.12)
- 🌟 Industry tailwinds from renewable energy demand
- 🌟 Increase in both FII (+0.44%) and DII (+0.59%) holdings
Limitation
- ⚠️ Decline in quarterly PAT (₹247 Cr. → ₹126 Cr.)
- ⚠️ Low ROE (10.2%) and ROCE (11.8%) compared to peers
- ⚠️ No dividend yield, limiting income returns
- ⚠️ Stock trading below 200 DMA (₹117), showing medium-term weakness
Company Negative News
- 📉 Sharp decline in quarterly profits
- 📉 Volatility in earnings performance
Company Positive News
- 📈 Strong YoY profit variation (96%)
- 📈 Increased institutional investor confidence (FII & DII holdings up)
Industry
- 🌐 Renewable energy sector is expanding rapidly in India
- 🌐 Industry P/E at 34.7 reflects growth premium
- 🌐 Government policies favor clean energy adoption
Conclusion
✅ Inox Wind offers exposure to India’s renewable energy growth story but carries financial volatility and limited profitability. Entry between ₹85–₹95 is suitable for high-risk investors. Long-term holding may yield gains if industry momentum sustains, but caution is advised due to inconsistent earnings and lack of dividends.
Would you like me to also compare Inox Wind with other renewable energy players like Suzlon Energy or Adani Green to see how it stacks up in the sector?