Inox Wind Trades At Steep Discount To Suzlon Energy Shares; Worth A Buy?

Motilal Oswal Financial Services Ltd (MOFSL) has initiated sum connected Inox Wind Limited (IWL) pinch a 'Buy' rating, mounting a target value of Rs 210 per share. This move implies a imaginable 21 per cent upside for nan stock, which is presently trading astatine a discount compared to its nonstop competitor, Suzlon Energy Limited.

Inox Wind is simply a cardinal subordinate successful India's upwind power sector, offering end-to-end solutions from conception to commissioning and attraction of upwind powerfulness projects. The institution boasts a manufacturing capacity of 2.5 gigawatts (GW) annually crossed 4 facilities, producing 2MW and 3MW Wind Turbine Generators (WTGs).

As of nan extremity of fiscal twelvemonth 2025, Inox Wind holds a robust bid book of astir 3.2GW. This important backlog provides nan institution pinch beardown gross visibility for astatine slightest nan adjacent 2 years, highlighting its imaginable for sustained growth.

MOFSL's study highlights Inox Wind's important operational synergies wrong its group. The listed subsidiary, Inox Green Energy Services Ltd (IGESL), manages an extended 5.1GW operations and attraction (O&M) portfolio.

Inox Renewable Solutions Limited (IRSL), different subsidiary, is expanding beyond accepted upwind EPC into star and hybrid EPC, arsenic good arsenic specialised services for illustration crane operations. This diversification is aimed astatine broadening Inox Wind's marketplace scope and work offering.

The Ministry of New and Renewable Energy (MNRE) has projected amendments that could use Indian OEMs for illustration IWL. These changes instruction section sourcing of cardinal components, perchance providing a boost to Inox Wind and diminishing title from Chinese players.

MOFSL anticipates a beardown compounded yearly maturation complaint (CAGR) of 38 per cent successful EBITDA for FY25-28 for Inox Wind. This is supported by a ramp-up successful WTG execution and a projected summation successful O&M contracted capacity, which is expected to astir triple by FY28.

The company's EPC business is strategically positioned to use from description into nan Independent Power Producer (IPP) domain and solar/hybrid O&M. This inaugural complements its existing and increasing execution of upwind projects.

IRSL is broadening its work portfolio to see crane services and transformer manufacturing, mounting it isolated successful nan Indian marketplace by providing a broad suite of services nether 1 umbrella.

The group precocious completed a merger pinch IWEL pursuing support from nan National Company Law Tribunal (NCLT). This merger has resulted successful a liability simplification of astir Rs 20 billion, streamlining nan group building for enhanced operational efficiency.

MOFSL's valuation sets a target P/E of 25x for FY27E EPS, which is astatine a 29 per cent discount to its target aggregate for Suzlon Energy. Currently, Inox Wind trades astatine a FY27 P/E of 20.5x, marking a 28 per cent discount to Suzlon Energy.

The study notes respective risks, including rising title from Chinese and European players, imaginable unit connected margins, and volatility successful earthy worldly prices. These factors could effect nan company's early performance.

Inox Wind is poised to capitalise connected India's eager upwind power targets. The state intends to grow its installed upwind capacity from 50GW by nan extremity of FY25 to 100GW by 2030.

The projected summation successful yearly installations is supported by forecasts from Suzlon Energy, predicting 6GW successful FY26, 7-8GW successful FY27, and 9GW from FY28 onwards. This positions IWL good for early growth.

Given India's request for round-the-clock power, hybrid and patient renewable power tenders are seen arsenic cardinal to early power strategies. These tenders necessitate a definite proportionality of upwind energy.

Despite concerns astir title from star power and retention solutions, upwind power remains a captious constituent of India's renewable power mix, expected to relationship for 20 per cent by 2030.

The company's strategical positioning, mixed pinch its important bid book, creates a promising outlook for early net growth. Integrated operations and synergies are expected to thrust faster execution, costs optimisation, and profitability improvement.

MOFSL's study underscores nan imaginable for IWL's operational ratio to heighten transparency and performance, positioning it advantageously successful nan competitory upwind power market.

Inox Green Energy Services Ltd is advancing a demerger of its powerfulness removal division, integrating it into different subsidiary, IRSL. This restructuring is expected to create an asset-light equilibrium expanse and trim depreciation expenses.

The group's efforts to streamline operations and heighten its work offerings position Inox Wind arsenic a beardown subordinate successful India's renewable power landscape, pinch a attraction connected strategical maturation and marketplace description .

Furthermore, nan diversification into star and hybrid EPC, on pinch specialized services, is expected to importantly broaden IWL's marketplace reach. This strategical move not only enhances nan company's work offerings but besides strengthens its competitory separator successful nan renewable power sector.