Stock of this wind energy solutions provider has zoomed 108% in 7 weeks

Shares of Inox Wind (IWL) surged 5 per cent to Rs 444.20 on the BSE in Thursday’s intra-day trade, extending its past one and half month rally amid hopes of improvement in its operating performance.  

In the past seven weeks, the market price of IWL has more than doubled or zoomed 108 per cent from a level of Rs 213.70 on November 2.

On Wednesday, the stock had hit the highest level in over eight years to Rs 450.85. This was the highest level since July 2015. The stock had hit a record high of Rs 494.40 on April 17, 2015.

At 10:50 AM Thursday; IWL was quoting 4 per cent higher at Rs 438.60, as compared to a 0.08 per cent decline in the BSE Sensex.

So far in December, IWL has surged 59 per cent after it completed infusion of around Rs 800 crore (before taxes and fees) by its promoter Inox Wind Energy Limited (IWEL).

Part of INOX GFL Group, IWL is an innovator in wind energy and offers customers comprehensive turnkey solutions, from design to commissioning to operations and maintenance.

The company also maintains strong connections with renewable energy developers, including PSUs, independent power producers (IPPs) and private investors.

Besides manufacturing and supply of Wind Turbine Generators (WTGs), it offers services including wind resource assessment, site acquisition, infrastructure development, erection and commissioning, and long-term O&M of wind power projects.

The company has the capacity to produce 1,900 MW of nacelle and hubs, 1,600 MW of blades, and 600 MW of towers.

However, debottlenecking the capacity of nacelle and tower only necessitates modest capital expenditures whereas the company believes that tower capacity can potentially be outsourced depending on the location of the project.

Meanwhile, the ongoing ramp up of IWL’s operations, technological upgrades to the globally established 3.3 MW WTGs and strong financial position will help embark on a robust growth journey, aided by the macro tailwinds, the management said.

IWL is the only domestic wind turbine manufacturing company rated under “A” category.

Last month the rating agency CRISIL upgraded its ratings on IWL with a stable outlook.

CRISIL upgraded its ratings from CRISIL BBB+ to CRISIL A- (long term rating), CRISIL A2 to CRISIL A2+ (short term ratings) with a stable outlook in relation to ratings of its banking facilities. 

CRISIL’s rationale for upgrading IWL’s ratings reflects the steps undertaken by the promoters in FY24 to reduce debt, leading to significant improvement in the financial and business risk profile.

The company demonstrated this by delivering significant improvement in operating performance in the first half of FY24 and commercialisation of the 3.3 megawatt (MW) turbine, CRISIL said. 

The upgrade in ratings also reflects IWL’s market position, focus on cost efficiencies, healthy order book and robust execution capabilities, it added.