INOXWIND - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.7

📊 Financial Overview: Inox Wind Ltd presents a moderately strong financial profile with a ROCE of 11.8% and ROE of 10.2%, indicating decent capital efficiency. The company maintains a healthy debt-to-equity ratio of 0.24, supporting financial stability. EPS stands at ₹2.80, and the P/E ratio of 65.2 is significantly above the industry average of 51.3, suggesting a premium valuation. The PEG ratio of 1.28 indicates fair valuation relative to growth. PAT declined from ₹190 Cr to ₹86.7 Cr QoQ, though YoY growth remains positive. The stock is trading near its 50 DMA (₹149) and 200 DMA (₹159), signaling technical consolidation.

💼 Business Model & Competitive Edge: Inox Wind is a leading wind energy solutions provider in India, offering turnkey services including turbine manufacturing, erection, and maintenance. Its vertically integrated model, strong parentage, and growing order book provide a competitive edge. The company benefits from India’s renewable energy push and favorable policy support, though execution timelines and margin pressures remain key challenges.

📉 Valuation & Entry Zone: With RSI at 62.6 and MACD at 2.39, momentum is mildly bullish. The stock is down ~31% from its 52-week high of ₹224. A favorable entry zone lies between ₹145–₹152, offering a reasonable margin of safety for long-term investors.

📈 Long-Term Holding Guidance: Inox Wind is a reasonable long-term hold for investors seeking exposure to India’s renewable energy sector. While valuation is stretched and earnings volatile, its strategic positioning and sectoral tailwinds support long-term potential. Monitor order execution, margin trends, and policy developments for sustained performance.

✅ Positive

• Healthy ROCE (11.8%) and ROE (10.2%)
• Low debt-to-equity ratio (0.24)
• PEG ratio of 1.28 suggests fair valuation
• DII holdings increased by 0.75%

⚠️ Limitation

• High P/E ratio (65.2) compared to industry average
• QoQ PAT decline from ₹190 Cr to ₹86.7 Cr
• Dividend yield remains at 0.00%
• Volume below weekly average indicates reduced trading interest

📉 Company Negative News

• FII holdings declined by 0.41%
• Stock trading ~31% below 52-week high

📈 Company Positive News

• Strong order book and policy support for wind energy
• Improved profitability on YoY basis
• Positive sentiment from domestic institutional investors

🏭 Industry

• Renewable energy sector benefits from climate goals and infrastructure push
• Industry P/E of 51.3 reflects high growth expectations
• Wind energy gaining traction alongside solar in India’s energy mix

🧾 Conclusion

Inox Wind is a strategically positioned renewable energy player with improving fundamentals and sectoral tailwinds. While valuation is elevated and earnings volatile, its long-term outlook remains promising. Investors may consider accumulating near ₹145–₹152 for exposure to India’s wind energy expansion.