Up 7x in 2 years: This power stock may touch Rs 185 level; here's what Axis Direct suggests

Indian benchmark indexes fell in a turbulent session on June 28. The Sensex closed down 210.45 points, or 0.27 per cent, at 79,032.73, while the Nifty fell 33.90 points, or 0.14 per cent, to 24,010.60.

Meanwhile, Axis Direct has chosen power stock Inox Wind Ltd (IWL) from a long-term perspective,

Why brokerage Axis Direct is bullish on this stock

The government plans to add about 75 GW of wind energy capacity from the current base of 46 GW by FY 2032. Inox Wind is an integrated wind energy solution provider. The company is engaged in the business of manufacturing and selling Wind Turbine Generator (WTG). 

The brokerage has advised buying the stock with a 12 to 18-month perspective. 

According to the Axis Direct report, Inox Wind provides construction, procurement and commissioning (EPC), operations and maintenance (O&M), and common infrastructure facility services for WTGs and wind farm development services. The brokerage says that after the promoter investment, IWL has reduced its interest-bearing debt to zero. With zero debt coming in, strong order book and execution capability along with the government's renewed focus on increasing wind energy capacity, the brokerage has set a target P/E multiple of 30x on FY26 EPS estimates.

"The company is well positioned to capture market share of the growing wind energy sector in India thanks to its strong balance sheet, strong order book of 2.7 GW among a well-diversified customer base. It is also technologically ready for the next decade with the transition from 2 MW to 3-3.3 MW and the development of a 4 MW WTG platform. The company's performance in FY 2024 was 376 MW compared to 104 MW in FY 2023, which shows an annual increase of 262% in performance," the brokerage said.

Inox Wind share price target

Brokerage Axis Direct has advised to buy shares in power stock Inox Wind with a perspective of 12 to 18 months. It has given the target price of Rs 185 per share. On June 28, 2024, the stock increased by 0.93 per cent and closed at Rs 141.75. At this price, the stock can give further returns of more than 30 per cent. 

Inox Wind's share price history

Talking about the stock performance of green energy stock, it has increased by 17 per cent in 6 months. The stock has given multi-bagger returns of 261 per cent in the last one year and 600 per cent in the last two years. The 52-week high of the stock is 177 and the low is 38. The market cap of the company is Rs 18,481.28 crore.

The views/suggestions/advice expressed here in this article are solely by the brokerage firm. Zee Business suggests its readers consult their investment advisers before making any financial decision.