The Inox share price is clocking steady gains in trade today. Nuvama has retained ‘Buy’ on Inox Wind with the target price unchanged at Rs 190 per share. This implies almost 31% upside for the share price. Nuvama ascribes revenue visibility till FY27 as one of the key reasons for the Buy recommendation.
The Inox Group has seen meaningful restructuring with the merger of Inox Wind Energy into the Inox Wind and Wind Turbine Generator business; apart from that, there was the rights issue aimed at balance sheet deleveraging and a calibrated capacity expansion in wind energy business.
The Group is also expanding its renewable energy focus. Concurrently, Inox Green has forayed into solar O&M while IRSL reinforces its manufacturing/EPC capabilities. This, according to Nuvama, helps clarity in terms of revenue visibility till FY27.
Nuvama on Inox Wind: Revenue visibility
Nuvama highlighted that Inox Wind’s 3.1 GW order book provides about two years of execution visibility, well diversified across customers with a balanced mix of turnkey and equipment-supply contracts. They expect working capital to improve to 120 days.
The GST cut to 5% from 18% is seen as an important tailwind “lowering wind costs/tariffs and indirectly benefiting wind OEMs.” Moreover, the company’s plans for Rs 100–150 crore capex for its blade facility in South India is also seen as a big positive.
Nuvama on Inox Wind: Beneficiary of localisation push
Inox Wind is seen as a beneficiary of the Renewable Energy Ministry’s notification w.e.f. July 31. This is expected to boost orders for domestic wind turbine suppliers and reduce import reliance while strengthening the competitive positioning of domestic players.
Nuvama on Inox Wind: Expanding operation
Inox Green has expanded into solar O&M, taking its portfolio to 5.3 GW across wind and solar, with management targeting 17 GW by FY27 (with 50%-plus wind). It has also invested in a 2 GW special-situation asset, with net margin accruing as other income (NCLT approval for consolidation expected in 2–3 quarters).
Nuvama is betting big on the opportunities that INOX Renewable Solutions (IRSL) represents. IRSL has begun manufacturing transformers for captive use, launched crane services at project sites and plans to integrate IGESL’s substation business. The company recently raised Rs 175 crore at a Rs 7,400 crore valuation and is aiming for a public listing within two–three quarters post-approval. Nuvama explained that “these steps expand IRSL’s manufacturing and service capabilities, strengthening its role in the renewable energy ecosystem.”