Inox Wind stock decline: Understanding the performance of this multibagger

Inox Wind, a prominent player in renewable energy, witnessed a 2.94% decline in its stock, falling to ₹203 on Friday. Despite this dip, Inox Wind’s performance over the past two years has been impressive, positioning it as an intriguing option in share market investment. Here’s a look at the recent factors affecting the stock.

Strong quarterly performance amid stock slip

Inox Wind announced significant gains in Q2, with profits reaching ₹90 crore for the July-September period, a robust recovery from a ₹27 crore loss in the same period last year. This performance, combined with a 93% revenue increase to ₹742 crore year-on-year, demonstrates the company’s growth. Investors in share market investment might view this drop as a reaction to broader market trends rather than a reflection of company performance.

Market capitalisation and stock performance

The recent dip in Inox Wind’s stock brought its market capitalisation down to ₹26,467 crore. Although the stock faced a temporary decline, it has shown resilience, gaining over 310% in the last year and 55% in 2024 alone. This growth trajectory offers potential for long-term investors considering share market investment in the green energy sector. Inox Wind remains on course to achieve its best-ever annual profitability in FY25.

Impressive order book and project execution

Inox Wind's current order book stands at a notable 3.3 GW, comprising diverse clients across public and private sectors. The company executed 140 MW in Q2 FY25, nearly doubling from 77 MW in the previous year. The increase in its order book underpins a growth-oriented trajectory, an attractive consideration for share market investment, as it highlights the potential for future expansion.

Analyst perspectives on Inox Wind’s stock

Despite the recent dip, analysts remain optimistic about Inox Wind's long-term potential. The company’s continued profit recovery and strong revenue growth reflect its strategic resilience. For investors focusing on share market investment, Inox Wind presents a unique opportunity in the renewable energy sector, as it benefits from increasing global and domestic support for green energy.

Invest safely

Inox Wind’s robust performance indicators and revenue growth have firmly positioned it as a key player for investors exploring share market investment. While the stock’s recent decline may prompt caution, the company’s expanding order book and profitability indicate strong future potential. For those focused on long-term investment in the renewable energy sector, Inox Wind’s track record and growth trajectory make it a noteworthy consideration.

Investors should, however, remain aware of market fluctuations and consider diversifying within the share market investment arena to manage risk effectively.