Inox Wind stock jumps 4% to fresh record high; multibagger up 366% in a year

Inox Wind stock has skyrocketed 366 percent in the past one year, more than quadrupling investors' capital. In comparison, Nifty rose 29 percent during this period

Shares of Inox Wind Ltd gained over 4 percent to hit a fresh record high of Rs 245 on high volumes and a rally in the broader market. A total of 2 crore shares of the company changed hands on BSE and NSE combined so far, compared to the one-week average trading volume of 1 crore shares.

Inox Wind is an integrated wind energy solutions provider. The company is engaged in the business of manufacture and sale of wind turbine generators (WTGs).

It also provides erection, procurement and commissioning (EPC), operations and maintenance (O&M) and common infrastructure facilities services for WTGs and wind farm development services.

Axis Securities in a recent report reaffirmed that it is bullish on Inox Wind on prospects of the debt-free stock. The brokerage has a 'buy' rating on the stock with a target price of Rs 200. The company is well-positioned to build on its growth momentum, it noted.

Inox Wind’s EPC projects arm, Resco Global recently approved a Rs 350 crore equity raise from marquee investors. This fund will be utilised to scale up business offerings at Resco to capitalize on the strong tailwinds in the wind sector in India.

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Analysts at Axis Securities estimate Resco’s valuation at Rs 5,000 crore, and the Rs 350 crore fundraise implies around 7-8 percent stake dilution.

Subsequently, the substation assets (non-core) housed at Inox Green Energy Ltd’s balance sheet will be demerged out of Inox Green Energy and will be merged into Resco Global thereby aligning synergies for both businesses. Post the regulatory approvals of the demerger of these power evacuation assets (substations), it will lead to the automatic listing of Resco Global.

"This will lead to an asset-light structure of the listed Inox Green Energy Ltd, unlocking its value, and Resco will be using these substation assets to generate additional revenue streams," said Axis Sec in its report.

"Inox Wind stock price is bullish but also overbought on the daily charts with next resistance at Rs 257. Investors should keep booking profits as daily close below the support of Rs 236 could lead to a fall till Rs 204 in the near term," said AR Ramachandran, Independent SEBI Research Analyst said.

At 2:16 pm, Inox Wind shares were trading 3.9 percent higher at Rs 243.25 on the National Stock Exchange (NSE). The stock has gained around 85 percent so far this year, outperforming Nifty's returns of 16 percent. In the past 12 months, the counter has risen 366 percent, more than quadrupling investors' capital. In comparison, Nifty rose 29 percent during this period.

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