Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

An Emerging Opportunity for Investors
India's Lithium Megatrend




**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.


AD

Why Inox Wind Share Price is Rising

Dec 5, 2023

Why Inox Wind Share Price is Rising

Benchmark indices touched record highs today, with the BSE Sensex surpassing the 69,000 mark and the Nifty crossing the significant milestone of 20,700 points.

This was on the back of robust domestic macroeconomic data and heightened expectations of a US rate cut in March and state election wins for the current ruling party.

Amid this optimistic market sentiment, Inox Wind stole the spotlight, gaining a notable 15% in a single day.

Here's why.

#1 Capital Infusion

Inox Wind shares surged to a 52-week high before closing with sharp gains of more than 15% on Monday after the company announced that its promoter, Inox Wind Energy, has infused around Rs 8 billion (bn) into the company to pare debt.

This financial injection came on the heels of IWEL's earlier move to generate Rs 8 bn through the sale of equity shares of Inox Wind in block deals on the stock exchanges.

The capital injection is expected to fortify the company's financial structure and enhance its operational capabilities.

The ongoing ramp-up of IWL's operations, technological upgrades to the globally established 3.3 MW WTGs and strong financial position will help the company embark on a robust growth journey, aided by the macro tailwinds.

#2 Renewable Energy Partnership

Another reason that aided the sentiment was the successful commissioning of the Phase -I of NTPC's 50 MW (megawatt) Renewable Energy project.

Located in Dayapar, Bhuj, Gujarat, this project marks a significant milestone as it is NTPC's first project and the first capacity in India declared commercial under the new Indian Electricity Grid Code (IEGC) and General Network Access (GNA) Regime.

As part of the order, Inox Wind has supplied and installed 25 Wind Turbine Generators (WTGs) with a capacity of 2.0 MW each, featuring a rotor diameter of 113 meters and a hub height of 92 meters.

Additionally, as part of the comprehensive service commitment, Inox Wind's subsidiary, Inox Green Energy Services, will provide operation and maintenance services throughout the project's lifetime.

The successful delivery of the Dayapar project's initial 50 MW capacity underscores Inox Wind's pivotal role as a long-term and trusted supplier for NTPC.

As they progress towards completing the remaining segments of the NTPC-I (150 MW) project and delivering on NTPC-II (200 MW) and NTPC-III (150 MW) projects, Inox Wind continues to stand as a key partner in supporting NTPC's vision for ambitious renewable energy targets.

What Next?

In terms of profitability, Inox Wind expects its next year's performance to triple, maintaining an operating profit margin of 15-16% and becoming net debt-free soon.

The management expects substantial interest in the sector, with stabilised power tariffs ranging from Rs 2 to Rs 3.5.

Overall, the company's prospects in the renewable energy industry appear promising, and they are ready to leverage growth opportunities.

Further, the company has planned to expand operations and is in the process of setting up an integrated wind turbine manufacturing facility in Madhya Pradesh at an investment of about Rs 2.5 bn.

Currently, India boasts a total renewable energy capacity of approximately 170 GW (gigwatts). To further accelerate progress, the government has unveiled a comprehensive plan to add 250 GW of renewable energy capacity over the next five years, aiming to achieve a total of 500 GW of clean energy by 2030.

On the back of a strong growth outlook in the future and countries moving more towards renewable energy, Inox Wind is poised for growth.

How Inox Wind Share Price has Performed Recently

In the past five days, Inox Wind share price is up 15%. In the month gone by, the stock has gained 34%.

While in the past one year, Inox Wind shares are up over 150%. So far in 2023, the stock has zoomed over 190%.

Inox Wind touched a 52-week high of Rs 341 on 4 December 2023 and it has a 52-week low of Rs 88.8 on 2 January 2023.

chart

About Inox Wind

Inox Wind is an India-based integrated wind energy solutions provider. The company is engaged in the business of manufacturing and selling of wind turbine generators.

It offers erection, procurement, commissioning, operations, and maintenance services.

Inox Wind has three manufacturing plants in India with a cumulative manufacturing capacity of approximately 1,600 megawatts.

To know more, check out Inox Wind company fact sheet and quarterly results.

You can also company with its peers

Inox Wind vs ABB India

Inox Wind vs CG Power & Industrial

Inox Wind vs Bharat Bijlee

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Safe Stocks to Ride India's Lithium Megatrend

Lithium is the new oil. It is the key component of electric batteries.

There is a huge demand for electric batteries coming from the EV industry, large data centres, telecom companies, railways, power grid companies, and many other places.

So, in the coming years and decades, we could possibly see a sharp rally in the stocks of electric battery making companies.

If you're an investor, then you simply cannot ignore this opportunity.

Click Here for Full Details

Details of our SEBI Research Analyst registration are mentioned on our website - www.equitymaster.com

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...

Equitymaster requests your view! Post a comment on "Why Inox Wind Share Price is Rising". Click here!