Renewable energy stocks have emerged as a hot choice among investors in recent times, driven by their strong order wins and an increasing demand stemming from the government's renewable energy initiatives.
One such notable stock in the renewable energy space is Inox Wind, which has witnessed a remarkable surge in its share price. Over the past six months, Inox Wind's shares have soared 86%, demonstrating a remarkable upward trajectory, whereas from a 52-week low of ₹77.4 apiece, the shares are up by nearly 150%.
Moreover, investors who held the stock for the long term saw significant gains, as it generated a return of almost 440% over the past three years, rallying from ₹35.80 apiece to the current market price of 193.
Inox Wind is a fully integrated wind energy player, providing end-to-end turnkey solutions to customers from conception to commissioning to operations and maintenance services. Its wind manufacturing capacity stands at 1,600 MW per year. It is in discussions with multiple PSUs, IPPs, and C&I customers for the supply of its newly launched 3.3 MW WTGs.
In June, the company bagged an order for a 100 MW wind power project from ABEnergia Renewables Pvt. Ltd. (ABEnergia), an independent power producer. As part of the order, Inox Wind will supply and install state-of-the-art, new generation 3.3 MW wind turbine generators.
Furthermore, in May, the company secured a significant 50 MW wind power project from NTPC Renewable Energy Limited, a wholly owned subsidiary of NTPC Green Energy Limited, which operates as the renewable energy business vertical of NTPC Limited. This recent project award brings the cumulative order volume from NTPC to Inox Wind to an impressive 550 MW.
Going forward, the company is well-positioned due to the higher bidding targets set by the Ministry of New and Renewable Energy (MNRE) for the financial year 2023-2024 (FY24). The bidding trajectory issued by MNRE includes an exclusive wind bid target of 10 GW and a target of 40 GW for solar, hybrid, and round-the-clock (RTC) bids.
These ambitious targets align with the GOI's broader objective of achieving a non-fossil fuel capacity of 500 GW by 2030. In addition to the ambitious target, there is further demand expected to arise from the Green Hydrogen ecosystem, which necessitates 20–25 GW of renewable energy Real-Time Contingency (RTC) capacity per million tons of Green Hydrogen production.
Furthermore, the Commercial and Industrial (C&I) segment is expected to contribute to the demand by seeking to meet their captive power requirements through greener sources. It's important to note that these additional demands are in addition to the 500 GW target, further enhancing the growth prospects for the company.
Meanwhile, for the March-ending quarter (Q4FY23), the company reported a standalone net profit of ₹8.80 crore, 45.45% higher compared to a net profit of ₹6.05 crore recorded in the same quarter of the previous year. The total revenue from the operation during the same period witnessed a YoY surge of 27%.
It ended FY23 with a net profit of ₹30 crore, as compared to a net profit of ₹19 crore in FY22. While the revenue from operations soared to ₹183 crore in FY23 from ₹130 crore in FY22.
7 analysts polled by MintGenie on average have a 'strong buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.