Inox Wind share price forecast for 2024: Axis Securities estimates that Inox Wind Ltd would witness a significant upside of around 20 per cent and has raised the target price to Rs 270 per share. This optimistic outlook comes in the wake of fresh value unlocking initiatives, backed by recent fundraising efforts at the company to enhance service offerings and take advantage of the strong tailwind blowing in the wind energy sector.
Initiatives to unlock value for revenue streams
Resco Global, a subsidiary of Inox Wind, has approved the issue of shares worth Rs 350 crore to marquee investors. The funds will be used to expand business offering in the EPC segment and tap the strong demand for renewable energy in India. Resco Global is estimated to be valued at Rs 5,000 crore, with stake dilution of around 7-8 per cent on account of the fundraising.
The company intends to divest its non-core substation assets through a demerger, which will subsequently merge with Resco Global. This will unlock additional revenue streams as the substation assets will now be used to evacuate solar and wind power. In addition, Resco Global would diversify into crane services, providing further additional revenue opportunities for Inox Wind.
Impact on profitability
All these initiatives will multiply Inox Wind’s earnings. Hybridisation of substation assets will increase the company’s PAT by Rs 75-100 crore annually, while crane services will add another Rs 50-60 crore annually. The new streams, from FY26 onwards, will further boost Inox Wind’s consolidated EBITDA by Rs 150-175 crore and PAT by Rs 140-150 crore.
Prospects for solid growth
Inox Wind has a well-positioned pipeline for strong growth and order execution is likely to multiply. Management has targeted execution of 800 MW and 1,200 MW for fiscal years 2025 and 2026, respectively. For fiscal year 2027, the target has been increased from 1,560 MW to 1,750 MW on the back of favourable sector tailwinds.
Given the strong order book, supply chain readiness and the government’s push towards renewable energy, Inox Wind is well positioned to sustain the growth momentum. The recent fundraising of Rs 1,050 crore by Inox Green Energy Services will further facilitate the company’s growth plans.
Axis Securities has raised the P/E multiple of Inox Wind from 30x to 35x for FY26, factoring in confidence in the company’s growth prospects. The target price, after adjusting for minority stakes in Inox Green Energy and Resco Global, is Rs 270, implying a 20 per cent upside from the current market price of Rs 225.
“We maintain a ‘Buy’ rating on the stock, considering the company has strong potential to capitalize on opportunities in the renewable energy space,” the report said.
(Disclaimer: The projections mentioned in this report are the opinions of stockbrokers and investment experts. Republic Business recommends users to consult with certified experts before making any investment decisions.)
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