3:1 Bonus Shares, Block Deal, NCDs: FII-Backed Wind Energy Stock Beats Nifty 500 By 276%; BUY For 38% Gains

After falling about 10% in the previous session, Inox Wind witnessed buying momentum with the stock ending at Rs 141.05 apiece on NSE, up by 2% with a market cap of about Rs 18,390.01 crore. At the closing price, this multi-bagger energy stock has outperformed the Nifty 500 by 276%. There is further potential for buying with the highest target price of Rs 193 apiece.

Data from Axis Securities showed that in the last 1 year, Inox Wind Ltd has beaten the Nifty 500 by 276.01% (CAGR difference). Also, for 6 out of the Last 12 Months, i.e. 50% of the time it has beaten Index returns.

Among the stock's trivia, Axis' report highlighted that FII shareholding in Inox Wind Ltd has increased by 9.11% since past 3 Months.

Inox Wind has a potential of 21-38% upside ahead.

As per the Trendline data, the consensus recommendation from 4 analysts for Inox Wind Ltd. is STRONG BUY. The 1-year average target price is at Rs 170, hinting at a 21% potential upside.

Meanwhile, Nuvama has initiated 'BUY' with a TP of INR193 at 30x WTG FY27E EPS (discounted to FY26E) of INR7.2 and DCF of O&M.

Nuvama said, "INOX Wind (INXW) is one of the only two WTG and turnkey EPC companies in India, wherein annual wind demand is reviving to more than 12GW. The revival is led by the spike in evening power demand (non-solar hours), catalysing RE tenders to move towards RTC/wind-solar-hybrid coupled with C&I demand from industrial consumers."

Inox Wind NCDs:

The company has allotted 20,00,00,000 - 0.01% Non-Convertible, Noncumulative, participating, Redeemable Preference Shares of Rs.10 each of the Company, fully paid, at par, on a private placement basis to Inox Wind Energy, Promoter Company, for cash consideration aggregating Rs. 200,00,00,000.

Inox Wind Block Deal:

Inox Wind Energy Limited (IWEL), the promoter of Inox Wind (IWL), successfully raised Rs. 900 Crores through the sale of equity shares of Inox Wind via block deals on the stock exchanges on 28th May 2024. IWEL to infuse the funds in IWL.

Further, the funds are to be used to pare down IWL's net external debt as well as augment its working capital requirements.

Inox Wind Bonus Issue:

Inox Wind turned ex-bonus on May 24, for issuance of bonuses in the ratio of 3:1. This meant that the company allotted 3 (Three) new fully paid-up bonus equity shares of Rs. 10/- each for every 1 () fully paid-up existing equity share of Rs. 10/- each held.

Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.

About Inox Wind:

Inox Wind Limited (IWL) is India's leading wind energy solutions provider servicing IPPs, Utilities, PSUs & Corporate investors. IWL is a part of the US$ ~ 8 BN INOXGFL Group which has a legacy of over nine decades and is primarily focused on two business verticals - chemicals and renewable energy. IWL is a fully integrated player in the wind energy market with four state-of-the-art manufacturing Plants in Gujarat, Himachal Pradesh and Madhya Pradesh, where Blades, Tubular Towers, as well as Hubs & Nacelles are manufactured. With its state-of-the-art 3 MW series WTG offering, IWL's manufacturing capacity stands at ~ 2.5 GW per annum.

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