Shares of Inox Wind ended their three-day gaining streak on Wednesday as the multibagger stock saw profit-booking after hitting record high in the last two sessions. Inox Wind shares touched record highs of Rs 209 and Rs 237 on August 12 and August 13, respectively. The Inox Wind stock, which gained 24% after Q1 earnings till Tuesday, fell 4% to Rs 207.25 in the current session on BSE. Total 17.24 lakh shares of the firm changed hands amounting to a turnover of Rs 36.77 crore on BSE.
Taking into account today’s correction, Inox Wind stock has fallen 12.55% from record high of Rs 237. Market cap of the firm slipped to Rs 27,340 crore.
Despite correction, the stock is trading in the overbought zone, signals the relative strength index (RSI) of the stock which stands at 76.4. The stock is trading higher than the 5 day, 10 day, 20 day, 30 day , 50 day, 100 day , 150 day and 200 day moving averages.
The Q1 earnings of the firm pushed the stock to record highs in the last two sessions. The earnings were announced after market hours on Friday.
The wind energy solutions provider turned profitable in the June 2024 quarter on a year-on year-basis. Inox Wind reported a profit of Rs 47 crore in Q1 against a loss of Rs 65 crore in the corresponding quarter of the previous fiscal.
The multibagger stock has gained 316% in one year and risen 647% in two years. The stock also delivered 1,821% returns in five years.
Analysts have mixed views on the prospects of the Inox Wind stock.
Gaurav Bissa, Incred Equities said, “While the prices have witnessed an uptick, they have been trading in a rising wedge pattern on the weekly charts. Also, the prices are not trading near 4-year ascending channel resistance implying fresh upside will be possible on a close above Rs 220 levels on the weekly or monthly basis. Once confirmed, the breakout can push the prices towards Rs 350 levels.”
Kushal Gandhi, Technical Analyst, StoxBox said, “The stock is trading at an excess of 20% above the mean, rendering it susceptible to profit-taking. We advise against purchasing Inox Wind at the prevailing market price, as it does not present a favourable risk-to-reward opportunity. However, existing investors may consider retaining their positions.”
Aditya Agarwal, head derivatives & technical at Sanctum Wealth said,"Inox Wind has given a breakout from the rising channel this week and after that stock saw sharp upmove and made highs of Rs 237. Overall, medium to long term view remains bullish in the stock and we expect it to move towards Rs 260- Rs 275 levels. However, given the sharp rally, we would advise to use dips towards Rs 195 levels to add fresh positions with stoploss of Rs 162."
Hardik Matalia, Derivative Analyst, Choice Broking said, “Traders might consider buying on dips near the Rs 190 – Rs 175 range, with a stop loss at Rs 165. The resistance level is currently at Rs 225; breaking this resistance could lead to further upside and potential new highs.”
Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher said, "The stock has witnessed a decent spurt recently to hit the high of Rs 236.95 where it has resisted and with some profit booking has slipped down with near-term support positioned at Rs 195 zone. The indicators have attained the highly overbought zone and some correction cannot be ruled out. The attractive level one can buy the stock would be at Rs 195 zone provided there is consolidation witnessed and thereafter, we can anticipate a pullback to improve the bias and after a decisive breach above Rs 237 zone, the next target expected is at around Rs 250 zone. At the same time, a decisive breach below Rs 188 shall weaken the trend and can anticipate for further slide."
Om Mehra, Technical Analyst, SAMCO Securities said, "Inox Wind has displayed strong momentum, particularly in the weekly timeframe. After breaking through the previous resistance at Rs 175, the stock surged to a new high of Rs 236.95. However, in the last few sessions, the stock formed a shooting star candle (bearish pattern) followed by a bearish candle on the daily chart, signalling potential short-term weakness. The daily RSI, after a successive rally, might lead to a short-term cooling-off. The primary trend remains strong and any correction towards the Rs 200-192 zone presents an accumulation zone, aligning with the stock’s overall strong traction."
"Inox Wind has reduced its external debt to zero with fresh infusion from promoters in Q1FY25. Thus, its concerns on debt are now a thing of the past. Its business fundamentals have never looked better with bulging orderbook of 2.9GW (a high in its history). Moreover, it received 0.6GW of orders during Q1 from a bevy of customers, reducing the concerns on its dependence on a single client. Its attempt to set the wheels on the right path has started yielding results," ICICI Securities said.
The domestic brokerage expects execution of 0.75GW for FY25 and 1.2GW for FY26 – drawing comfort from the 2.9GW orderbook. "We reiterate BUY with a revised target price of Rs 240 (vs Rs 180 earlier)," it said.