Inox Wind shares up 329% in 1 year. Should you buy, hold or sell this stock?

Inox Wind Ltd reported nearly doubling of June quarter revenues -- its margin expanded, execution picked up and order book improved, as the company reported profits for the first quarter against a loss in the year-ago quarter. Analysts are largely positive on Inox Wind prospects, as the company has cut its external debt to zero with fresh infusion from promoters. Their price targets on Inox Wind however suggests the stock may be pricing in most positives.

"We assign a target P/E multiple of 30 times to our FY26 EPS estimate. After adjusting for the promoter’s fund infusion and minority stake in Inox Green Energy Services Ltd, we arrive at a target price of Rs 205 per share," Axis Securities said.

The Axis Securities' target on Inox Wind has been breached, as the stock climbed 3.50 per cent to Rs 215.80 on Tuesday. The multibagger stock is up 329 per cent in the past one year.

Nuvama said Inox Wind posted strong Q1FY25 results with operating margin at 21.3 per cent against an estimate of 15 per cent, as sales mix was heavier on WTG supply. It expects EPC costs to get booked in the future.

"Hence, full-year margins are likely to normalise to 16–17 per cent. Adjuted PAT at Rs 51.80 crore, thus, beat our estimate by 35 per cent. Inox Wind executed 140MW which was in-line with estimates. It implies sales growth of 83 per cent YoY at Rs 640 crore (estimate Rs 670 crore). Robust order inflow at 611MW (2.4x YoY; FY25E OI at 2.8GW) bulked up order book to 2.9GW," it said.

This brokerage tweaked it FY25–27 estimates for margins. Nuvama lowered its realisation per MW and suggested a target price of Rs 201. This target was also lower than Inox Wind's latest closing price.

"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.

This brokerage expects execution of 0.75GW for FY25 and 1.2GW for FY26 – drawing comfort from 2.9GW orderbook. "We reiterate BUY with a revised target price of Rs 240 (vs Rs180 earlier)," it said.