Inox Wind Hits New Record For Second Day After New Order Win, Q1 Earnings

Shares of Inox Wind Ltd. surged over 13% to hit a record high for the second day in a row on Tuesday after it bagged a 51 megawatt equipment supply order from a Tamil Nadu client, even as investors continue to remain bullish following its impressive first-quarter earnings.

The company has bagged the equipment supply order from Everrenew Energy Pvt. for its 3 MW-class wind turbine generators. Additionally, Inox Wind will provide post-commissioning, multi-year operations, and maintenance services. The project will be executed in Tamil Nadu.

The stock continued its Monday momentum after the wind turbine generator maker announced a net profit of Rs 50 crore in the quarter ended June 2024, compared to a loss of Rs 65 crore in the year-ago period.

Inox Wind's order book at the end of the first quarter gives the company large revenue visibility for the next two years, according to Devansh Jain, executive director of the Inox Group. It stood at 2,917 megawatts in the April-June period, compared to 2,446 megawatts at the start of the financial year.

The company currently earns around Rs 6 crore per megawatt, Jain said. This means the company's current order book could have a revenue potential of Rs 17,502 crore over the next two years.

Shares of Inox Wind rose as much as 13.6% during the day to Rs 237 apiece on the NSE. It was trading 9% higher at Rs 227.4 apiece, compared to a 0.13% decline in the benchmark Nifty 50 as of 9:40 a.m.

The stock has risen 352% in the last 12 months and 73% on a year-to-date basis. The total traded volume so far in the day stood at 9.2 times its 30-day average. The relative strength index was at 79.

Five out of the six analysts tracking the company have a 'buy' rating on the stock and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 6.9%.