DIIs Bought 72,76,501 Shares: Suzlon Peer Company’s Debt-Free Multibagger Stock Hit 20 Per Cent Upper Circuit on January 29
The stock gave multibagger returns of 575 per cent in just 2 years and a whopping 1,460 per cent in 5 years.
On Wednesday, Suzlon peer company’s shares surged & hit 20 per cent upper circuit to Rs 161.85 per share from its previous closing of Rs 134.90 per share. At the closing bell, shares of the company ended the day in the green, up 19.79 per cent to Rs 161.60 per share with a spurt in volume by more than 5 times on BSE.
Inox Wind Ltd, 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.
Update 1: Inox Wind Limited (IWL), a leading wind energy solutions provider in India and a peer company of Suzlon, has received a significant boost to its creditworthiness. Care Ratings has upgraded the company's ratings for both short-term and long-term bank facilities. Short-term facilities, primarily used for letters of credit and bank guarantees, were upgraded to the highest rating of 'CARE A1+', reflecting strong financial standing. Long-term facilities, rarely drawn upon due to IWL's robust cash position, were upgraded to 'CARE A+ / STABLE'. This positive assessment follows a similar upgrade from another rating agency within the past two weeks. The improved ratings underscore a significant enhancement in IWL's business risk profile, driven by improved operating and financial performance. With a robust order book of approximately 3.5 GW and a substantial pipeline, IWL is well-positioned for continued growth, benefiting from India's ambitious renewable energy targets.
Update 2: The company bagged a 60 MW order from Serentica Renewables (Serentica), a leading C&I-focused renewable energy company in India. This order is for the supply of 3 MW class turbines to be delivered within H1 CY25. Additionally, IWL will provide multi-year post-commissioning operations & maintenance (O&M) services for these WTGs, which will be erected at the hybrid renewable energy project site being developed by Serentica in Karnataka. The power generated from this project will be supplied to Serentica’s partners, including the Vedanta Group. This milestone order for IWL opens large future opportunities to partner with another marquee C&I customer.
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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.
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.
The company has a market cap of over Rs 19,000 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. DIIs bought 72,76,501 shares and increased their stake to 9.81 per cent in December 2024 compared to September 2024. The stock gave multibagger returns of 575 per cent in just 2 years and a whopping 1,460 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.