INOXWIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | INOXWIND | Market Cap | 18,016 Cr. | Current Price | 104 ₹ | High / Low | 198 ₹ |
| Stock P/E | 30.6 | Book Value | 35.3 ₹ | Dividend Yield | 0.00 % | ROCE | 11.8 % |
| ROE | 10.2 % | Face Value | 10.0 ₹ | DMA 50 | 121 ₹ | DMA 200 | 143 ₹ |
| Chg in FII Hold | 0.79 % | Chg in DII Hold | 0.50 % | PAT Qtr | 247 Cr. | PAT Prev Qtr | 86.7 Cr. |
| RSI | 33.6 | MACD | -5.35 | Volume | 50,81,582 | Avg Vol 1Wk | 66,21,983 |
| Low price | 102 ₹ | High price | 198 ₹ | PEG Ratio | 0.60 | Debt to equity | 0.12 |
| 52w Index | 2.39 % | Qtr Profit Var | 285 % | EPS | 3.72 ₹ | Industry PE | 35.4 |
💹 Core Financials: Inox Wind has shown a sharp improvement in profitability with quarterly PAT rising from ₹86.7 Cr. to ₹247 Cr., a 285% jump. ROE at 10.2% and ROCE at 11.8% are modest compared to industry leaders, but improving. Debt-to-equity ratio of 0.12 indicates low leverage, supporting financial stability. Dividend yield is 0%, reflecting reinvestment of profits rather than shareholder payouts.
📊 Valuation Indicators: Current P/E of 30.6 is slightly below the industry average of 35.4, suggesting fair valuation. P/B ratio (~2.95) is moderate, not excessive. PEG ratio of 0.60 indicates strong earnings growth potential relative to valuation, making the stock attractive for growth investors. Intrinsic value analysis suggests the stock is undervalued near current levels, especially given recent profit momentum.
🏢 Business Model & Competitive Advantage: Inox Wind operates in the renewable energy sector, focusing on wind turbine manufacturing and services. Its competitive advantage lies in India’s growing renewable energy demand, government support for clean energy, and its integrated business model covering manufacturing, erection, and maintenance. However, competition from global and domestic players remains intense.
📈 Entry Zone: Technical indicators (DMA 50: ₹121, DMA 200: ₹143, RSI: 33.6) suggest the stock is oversold. An attractive entry zone lies between ₹100–₹115, close to current levels. Accumulation in this range may benefit long-term investors.
🕰️ Long-Term Holding Guidance: Inox Wind offers potential for long-term growth given India’s renewable energy push. While return ratios are currently modest, improving profitability and low debt position make it a candidate for patient investors. Long-term holding is recommended for exposure to the clean energy sector.
Positive
- Quarterly profit growth of 285%
- Low debt-to-equity ratio (0.12)
- PEG ratio of 0.60 indicates strong growth potential
- Increase in FII (+0.79%) and DII (+0.50%) holdings
Limitation
- ROE (10.2%) and ROCE (11.8%) remain modest
- No dividend yield (0%)
- Stock trading below DMA 50 and DMA 200, showing weak technicals
Company Negative News
- Weak technical momentum (RSI 33.6, MACD -5.35)
- 52-week performance index at only 2.39%
Company Positive News
- Strong quarterly PAT surge
- Rising institutional investor confidence (FII & DII holdings up)
- Benefiting from government renewable energy initiatives
Industry
- Renewable energy sector supported by government policies
- Industry P/E at 35.4, slightly higher than Inox Wind’s 30.6
- Strong demand outlook for wind and clean energy solutions
Conclusion
Inox Wind is positioned in a high-growth sector with improving profitability and low debt. Valuation appears attractive with a favorable PEG ratio. While return ratios are modest and technicals weak, long-term investors can accumulate in the ₹100–₹115 range to benefit from India’s renewable energy expansion.
Would you like me to also prepare a side-by-side HTML comparison of Inox Wind with other renewable energy peers like Suzlon and Adani Green to highlight relative strengths?