3:1 Bonus Share: Suzlon peer company’s debt-free multibagger stock in focus as the company reports a turnaround net profit in its quarterly & half-yearly results

The stock gave multibagger returns of 300 per cent in just 1 year and a whopping 2,300 per cent in 5 years.

Suzlon’s peer company, Inox Wind Limited (IWL) reported robust financial results for the second quarter of the fiscal year 2025. The company executed a significant 140 MW of wind energy projects during the quarter, marking an impressive 82 per cent year-over-year growth. This strong performance, coupled with a substantial 96 per cent year-over-year increase in the first half of the fiscal year, positions IWL for a record-breaking year in terms of profitability. The company's order book, currently at an impressive 3.3 GW, has experienced a remarkable 161% year-over-year growth, driven by a diverse customer base including PSUs, Independent Power Producers (IPPs), Commercial & Industrial (C&I) customers, and retail consumers.

IWL's strategic initiatives have further solidified its position in the wind energy market. The company has successfully raised Rs 350 crores in equity capital for its subsidiary, Resco Global, from prominent investors. This infusion of capital will enable Resco to expand beyond its traditional EPC business and invest in the acquisition of cranes for both captive and third-party requirements. Additionally, IWL has secured a significant consortium agreement with banks for facilities worth approximately Rs 2,200 crores, predominantly non-fund-based. This achievement underscores the company's strong financial health and its ability to secure funding without relying on group support.

Debt-Free Update: IWL announced the completion of an infusion of Rs 900 crore into the company by its promoter Inox Wind Energy Limited (IWEL). The funds were raised by IWEL on May 28, 2024, through the sale of equity shares of IWL through block deals on the stock exchanges, witnessing the participation of several marquee investors. The funds will be utilised by IWL to completely pare down its external term debt to achieve a net debt-free status wherein the net debt-free status excludes promoter debt. 

bonus Update: Earlier the shares of the company ex-traded bonus shares of 3:1 (three bonus equity shares for every one existing equity share) out of the accumulated reserves of the company. The company announced the revised record date was Friday, May 24, 2024.

Results: According to Quarterly Results, the net sales increased by 98 per cent to Rs 732.2 crore in Q2FY25 compared to net sales of Rs 370.64 crore in Q2FY24. The company reported a net profit of Rs 90.2 crore in Q2FY25 compared to a net loss of Rs 29.2 crore in Q2FY24, an increase of 409 per cent. In its half-yearly results, the net sales increased by 91 per cent to Rs 1,371.1 crore in H1FY25 compared to net sales of Rs 719.4 crore in H1FY24. The company reported a net profit of Rs 144.7 crore compared to a net loss of Rs 88.3 crore in H1FY24, an increase of 264 per cent. Looking at its annual results, the net sales increased by 137.8 per cent to Rs 1,743.24 crore in FY24 compared to FY23. The company reported a net loss of Rs 50.79 crore in FY24 compared to a net loss of Rs 696.84 crore in FY23.

About the Company

Inox Wind, a subsidiary of INOX Group, manufactures wind turbines and offers complete solutions for wind farms in India. Focused on innovation and sustainability, they aim to be a major player in India's renewable energy shift.

The company has a market cap of over Rs 27,000 crore with a 3-year stock price CAGR of 115 per cent. The company’s order book is Rs 3,300 MW as of September 30, 2024. FIIs bought 3,19,42,953 shares and increased their stake to 15.82 per cent in September 2024 compared to 13.37 per cent in June 2024. The stock gave multibagger returns of 300 per cent in just 1 year and a whopping 2,300 per cent in 5 years. Investors should keep an eye on this multibagger stock under the radar.

Disclaimer: The article is for informational purposes only and not investment advice.