3:1 Bonus Shares: Wind Energy Stock Gets Credit Rating Upgrade, Buy For TP Rs 193: Nuvama

Inox Wind Ltd shares declined by 0.96% in trade today despite receiving credit rating upgrade from CRISIL. Current market price of Inox Wind share on BSE is Rs 149.70 per share. Inox Wind shares offered highly attractive return of 310% in last 1-year and more than 50% in last 6-months.

Meanwhile, brokerage firm Nuvama has recommended buy call to Inox Wind Ltd share with target price of Rs 193 per share. Earlier, Inox Wind recommended 3:1 bonus share on April 25, 2024 and set May 25 as record date. Check details below:

Inox Wind Gets Credit Rating Upgrade: As per the regulatory filing of Inox Wind dated June 13, 2024, "CRISIL has upgraded both its long-term ratings and its short term ratings in relation to the ratings of the Company's banking facilities. CRISIL has confirmed the following for IWL:
• 'CRISIL A/Stable' (upgraded from CRISIL A-/Stable) rating for Company's Long Term Bank Facilities;
• 'CRISIL A1' (upgraded from CRISIL A2+) rating for Company's Short Term Bank Facilities;

CRISIL's rating upgrade reflects the improvement in IWL's business risk profile on account of substantial improvement in operating performance. Further, it notes that the company's deleveraging efforts through equity raise significantly improves its financial risk profile."

Speaking on the occasion, Mr. Kailash Tarachandani, CEO of Inox Wind, said "The latest ratings upgrade by CRISIL is an outcome of all the efforts undertaken by the company in the recent past. We have successfully raised funds to strengthen our balance sheet and also ramped up our operations. Further, with the transition to our state-of-the-art 3MW WTGs, we have embarked on a superlative growth journey with strong profitability."

Board Approved Infusion Of Capital Into Inox Wind Limited: As per the regulatory filing of Inox Wind dated May 31, "Inox Wind Limited (IWL) declared that its Board of Directors, in its meeting held on 31st May, 2024, has approved the raising of funds in the company. With the board's approval in place and further subject to shareholder and other regulatory approvals, the proceeds from the sale of IWL shares by IWL's promoter Inox Wind Energy Limited (IWEL) via block deals on the stock exchanges on 28th May, 2024, will be infused in IWL by way of issuance of 0.01% Non-Convertible Non-Cumulative Participating Redeemable Preference Shares ('NCPRPS') to IWEL. The funds will be utilised by IWL to completely pare down its external debt and augment the working capital needs, strengthening its balance sheet further."

Inox Wind Share Performance: The 52-week high price of Inox Wind Ltd shares on BSE is Rs 177.00 per share (as on 27/05/2024) and 52-week low price is Rs 34.40 per share (as on 13/06/2023), respectively. Inox Wind has a market capitalisation of Rs 19,507.80 crore. Inox Wind share gained over 7% in last 1-week, soared 558% in last 2-years, and offered return of 733% in last 5-years.

Inox Wind Ltd Q4: Inox for the March 2024 quarter announced a strong surge in total income to Rs 563.07 crore as against Rs 193.83 crore declared in the corresponding quarter of last year. Its expense announced at Rs 512.50 crore for the March 2024 quarter as compared to Rs 312.43 crore in the corresponding quarter of last year. Inox Wind received single largest wind project order of 1,500 MW from a renowned power utility for the quarter under review, leading to a robust order book of 2.7 GW (excluding letter of intent) having a revenue potential of Rs 18,000 crore.

About: 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, according to BSE filing of the company.

Disclaimer: The stock has been picked from the brokerage report of Nuvama. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision