Will INOX Wind become big player in Indian wind energy? Motilal Oswal said buy

Brokerage firm Motilal Oswal has given the ‘BUY’ rating to Inox Wind (IWL) and its target price has been kept at Rs 210, that is, about 21 per cent above the existing levels. So what is it in the Inox Wind that is making it special for investors? Let us know the big things of this report, easy and in the form of conversation.

The future of wind energy is still strong, Inox wind is ready

According to Motilal Oswal, Wind Energy still plays an important role in India’s 2030 Green Energy Scheme. Even though its contribution in India is still low, it has reached 30-40 percent in countries like America, China and Europe.

Now Hybrid and FDRE (firm dispatchable renewable energy) tenders are coming in India, in which wind energy is considered an essential part. Companies like INOX WIND can get direct benefit of this, especially when the demand for battery storage along with solar energy is also increasing.

Strong order book and group strength of INOX Wind

The report states that INOX Wind has an order book of around 3.2 GW by the end of FY25, that is, the company’s factories will be busy for the next two years. Apart from this, other companies of INOX Group such as- Inox Green Energy Services (IGESL): 5.1 GW of Ggwot O & M (Operation and Maintenance) is taking responsibility.

Inox Renowable Solutions (IRSL): EPC (Engineering, Procurement and Construction) of more than 3 GW has worked. Such an integrated structure helps the company to complete the projects at fast work and low cost.

Domestic companies can get big benefit from RLMM policy

The Ministry of New and Renewable Energy, Government of India, has recently introduced a draft policy of Revised List of Models and Manufacturers (RLMM). It has been necessary that some special parts of turbine should be made in India. Motilal Oswal believes that this step can be a game-chain for domestic companies such as Inox Wind and Suel. This will reduce the increase in prices of Chinese companies and reduce the pressure on the profits of Indian companies.

Inox wind now cheaper from the point of view of Valuation

The brokerage report states that a target price of Rs 210 has been fixed by putting 25x P/E ratio on the estimated profit (EPS) of FY27. This is about 29 percent less than the valuation of a competition like Suel. Currently, the share of INOX WIND is trading at 20.5x P/E according to FY27, which is at 28 percent discount against Suel. That is, it can give better value for investors right now.

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