Inox Wind stock price surges over 4%. Here's the reason why shares rose

Inox Wind's shares opened up 4.32 per cent on July 9, 2024, after the renewable energy solutions provider revealed it secured a significant order. Inox Wind bagged a 200 MW order from a leading renewable C&I power producer, as per an exchange filing. This order is for Inox Wind's latest 3 MW Wind Turbine Generators (WTGs), and includes comprehensive turnkey execution and multi-year operations and maintenance (O&M) services post-commissioning.

Inox Wind stock price was at ₹116.95, up 2.80, or 1.77 per cent at 11:15 am on July 9, on BSE. The company enjoys a market capitalisation of ₹21,310.51 crore as per BSE.

The project, set to be executed across Gujarat and Rajasthan, marks a substantial addition to Inox Wind's order book. CEO Kailash Tarachandani expressed enthusiasm about the large turnkey order for 200 MW. "Inox Wind continues to be a preferred partner for renewable project developers given our capabilities and credentials to deliver large-scale wind projects. This, along with our existing order book and strong order pipeline, reinforces our commitment towards achieving substantial growth in FY25 and beyond," Tarachandani said.

Should you buy Inox Wind shares?

Domestic brokerage firm Axis Securities inititated coverage on Inox Wind on July 1, a comprehensive wind energy solutions provider, with a 'buy' recommendation. Axis Securities set a target price of ₹185 per share, suggesting a potential increase of 31% from the stock's recent closing price of ₹141.

According to the brokerage, Inox Wind is strategically poised to capitalise on the expanding Indian wind sector. The company's strengths, including a strengthened balance sheet and a robust order book of 2.7 GW across diverse customer segments, are highlighted. Additionally, its operational and maintenance arm, Inox Green Energy Services Ltd., boasts strong margins exceeding 45%.