Energy Stock Recommendation: What Is The Reason Behind Inox Wind's Rally?

Shares of Inox Wind Limited surged on Friday as the company scrip witnessed high trading volume on BSE. Nearly 50,525 shares changed hands at 12:54 pm on BSE today. As a result, the heavy electrical equipment stock garnered huge attention from the investors and also appeared as one of the top gainers of the day initially.

The BSE 500 stock experienced a spurt in volume by 3.23 times on Friday. It commanded a market capitalisation of Rs 21,558.23 crore.

Inox Wind Share Price Trend

Inox Wind's scrip value has increased over 8.89% in the last one month, against BSE Sensex's 5.8% appreciation during the same period. The stock price touched its 52-week-high mark of Rs 262.10 apiece on BSE on 23 September 2024, whereas it plunged to its 52-week-low mark of Rs 124.35 apiece on BSE on 5 June 2024.

Inox Wind Share Price Outlook

The bullish trajectory of the energy sector stock, operating in the heavy electrical equipment category, came under investors' spotlight after stock brokerage firm JM Financial initiated a 'buy' call with a target price of Rs 212 apiece valued at 24x P/E on FY27E, reported Economic Times.

Inox Wind Share Price Technical Analysis

Inox Wind stock has a medium financial strength with expensive valuation, according to Trendlyne data on March 28. The scrip had a momentum score of 36 on a scale of 100 indicating technically neutral valuation at present time.

Considering its long-term health assessment, the stock has a durability score 50 on a scale of 100, indicating a medium financial strength. It had an RSI score of 43.9. An RSI score below 30 is considered oversold and above 70 overbought. Whereas, its MFI score stood at 74.3 on Trendlyne. As per the report, an MFI score above 70 indicates that the stock is considered overbought, indicating a potential pullback.

About Inox Wind

The company reported strong quarterly results during the quarter ended in December. As per its BSE filing, Inox Wind's consolidated total income increased 33% sequentially to Rs 993.60 crore in the December quarter. The total income surged nearly 96% from last year. Its net profit after tax stood at Rs 111.64 crore

Earlier in March, the company had secured a 153 MW order from a leading renewable energy developer expanding its projects in the clean energy segment. The order included the supply of IWL's 3 MW class turbines for a project being developed in Tamil Nadu.
Additionally, the company stated that it will also provide limited scope EPC services for the project, along with multi-year operations & maintenance (O&M) services post-commissioning of the turbines.