INOXWIND - Investment Analysis: Buy Signal or Bull Trap?

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

INOXWIND is a promising renewable energy play with improving fundamentals and sector tailwinds, but elevated valuation and earnings volatility suggest a cautious entry. Ideal entry zone: ₹145–₹155.

Investment Rating: 3.9

INOXWIND offers long-term potential in the wind energy space, supported by low debt and sector momentum, though its high P/E and recent profit dip warrant disciplined accumulation.

Positive

• ROCE of 11.8% and ROE of 10.2% reflect improving capital efficiency.
• Debt-to-equity ratio of 0.24 indicates a healthy balance sheet for a capital-intensive sector.
• PEG ratio of 1.30 suggests fair valuation relative to growth.
• EPS of ₹2.80 and Qtr Profit Var of 23.5% show earnings momentum.
• DII holding increased by 0.75%, signaling rising domestic institutional confidence.
• MACD (2.51) and RSI (63.2) indicate bullish technical momentum.

Limitation

• P/E of 66.2 is significantly above industry average (51.6), indicating premium valuation.
• Dividend yield of 0% offers no passive income.
• FII holding declined by 0.41%, showing cautious foreign sentiment.
• Volume below 1-week average, suggesting reduced short-term interest.
• Quarterly PAT dropped from ₹190 Cr. to ₹86.7 Cr., indicating earnings volatility.

Company Negative News

• INOXWIND shares are down 25% YoY, underperforming Nifty and Nifty Energy indices

  Business Standard

  .

Company Positive News

• Bajaj Broking Research listed INOXWIND as a top pick for October 2025, citing sector momentum and Q2 earnings strength

  The Times of India

  .

• INOXWIND gained for three consecutive sessions, showing technical strength and investor interest

  Business Standard

  .

Industry

• Renewable energy stocks are benefiting from India’s clean energy push, global climate commitments, and infrastructure expansion.
• INOXWIND trades above industry P/E (51.6), reflecting growth expectations and sector optimism.

Conclusion

• INOXWIND is a speculative long-term investment in the renewable energy space with improving fundamentals and sector tailwinds.
• Ideal entry zone: ₹145–₹155, near DMA 50 and below recent highs.
• If already holding, maintain a 2–3 year horizon to benefit from clean energy expansion and policy support.
• Exit strategy: Monitor quarterly earnings and valuation metrics; consider trimming if profit volatility persists or P/E expands further.

Sources

Business Today

+2