Multibagger green energy stock rises for 4th session, hits record high; what's next?

Shares of Inox Wind Ltd hit their record high on Tuesday amid a rally in the broader market. The multibagger stock rose for the fourth straight session today. Inox Wind stock rose 4% to a high of Rs 245 against the previous close of Rs 234 on BSE. Market cap of Inox Wind rose to Rs 31,460 crore on BSE. The stock has gained 382% in a year and risen 611% in two years. The multibagger stock has climbed 85% in six months.

Total 5.62 lakh shares of the firm changed hands amounting to a turnover of Rs 13.57 crore on BSE.

Inox Wind shares have a beta of 1.4, indicating high volatility in a year. In terms of technicals, the relative strength index (RSI) of the stock stands at 71.7, signaling it's trading in the overbought zone. The multibagger green energy 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.

Axis Securities is bullish on prospects of the debt-free stock. It has fixed a price target of Rs 200  on the stock. 

"We assign a target P/E multiple of 35 times vs. 30 times previously to our FY26 EPS estimate, given the tailwinds in the wind sector. After adjusting for the minority stake in Inox Green Energy Services Ltd. and Resco Global (7%), we arrive at a price target of Rs 270  per share (from Rs 205/share). We maintain a BUY rating on the stock," said the brokerage.

The brokerage listed out the following risks to its estimates and price target. 

1. Delay in ramp-up of execution.

2. Delay or under-subscription of the auctions could result in a slowdown of wind turbine markets. 

AR Ramachandran, Independent SEBI Research Analyst said, "Inox Wind stock price is  bullish but also overbought on the daily charts with next resistance at Rs 257. Investors should keep booking profits as daily close below the support of Rs 236 could lead to a fall till Rs 204 in the near term."

Inox Wind is an India-based integrated wind energy solutions provider. The company is engaged in the business of manufacture and sale of wind turbine generators (WTGs). It also provides erection, procurement and commissioning (EPC), operations and maintenance (O&M) and common infrastructure facilities services for WTGs and wind farm development services.