Indowind Energy, operating in the power generation and distribution industry, has experienced a shift in its financial trend from positive to flat during the quarter ended September 2025. The company reported its highest quarterly net sales at ₹17.55 crores, alongside a peak PBDIT of ₹10.33 crores. Operating profit to net sales ratio also reached a notable 58.86%, indicating operational efficiency in the quarter. Profit before tax excluding other income stood at ₹4.34 crores, with a corresponding PAT of ₹4.74 crores and an EPS of ₹0.37, all marking quarterly highs.
Despite these quarterly peaks, the nine-month PAT figure at ₹2.26 crores reflects a contraction of 66.12% compared to the previous period, signalling challenges in sustaining profitability over a longer horizon. Interest expenses for the quarter were recorded at ₹2.38 crores, the highest in recent periods, which may have exerted pressure on net earnings. These mixed financial signals have contributed to the adjustment in Indowind Energy’s financial trend evaluation.
Perfect timing to enter! This Small Cap from IT - Software just turned profitable with growth momentum clearly building up. Get in before the broader market notices!
- New profitability achieved
- Growth momentum building
- Under-the-radar entry
Turning to quality metrics, Indowind Energy’s quality grade has shifted from below average to average. Over the past five years, the company has demonstrated a sales growth rate of 17.62% and an EBIT growth rate of 31.81%, reflecting a capacity for expansion and operational improvement. The average EBIT to interest coverage ratio stands at 2.07, suggesting moderate ability to service debt obligations. Debt to EBITDA ratio averages 3.31, while net debt to equity remains low at 0.09, indicating a conservative leverage position.
Other quality indicators include a tax ratio of 54.33%, no pledged shares, and minimal institutional holding at 0.05%. Return on capital employed (ROCE) and return on equity (ROE) average at 1.55% and 1.20% respectively, pointing to modest returns generated on invested capital and shareholders’ funds. When compared to peers such as Urja Global, GVK Power Infra, and Karma Energy Ltd, which maintain below average quality grades, Indowind Energy’s relative standing has improved within its sector.
From a valuation perspective, the stock is currently priced at ₹16.28, slightly below the previous close of ₹16.36. The 52-week price range spans from ₹14.26 to ₹28.00, with the day’s trading high and low at ₹16.67 and ₹16.05 respectively. The company’s price-to-book value ratio is approximately 0.7, which is lower than the historical average valuations of its peers, suggesting a discount in market pricing relative to book value. However, the low ROE of 1.20% indicates limited profitability per unit of equity, which may temper valuation considerations.
Examining technical indicators, Indowind Energy’s technical trend has adjusted from bearish to mildly bearish. Weekly MACD readings show a mildly bullish stance, whereas monthly MACD remains bearish. Relative Strength Index (RSI) on both weekly and monthly charts does not currently signal a definitive trend. Bollinger Bands indicate bearishness on a weekly basis and mild bearishness monthly. Daily moving averages suggest a mildly bearish outlook, while the KST oscillator and Dow Theory signals on weekly and monthly timeframes lean towards bearish or mildly bearish trends. On-balance volume (OBV) also reflects no clear trend weekly and mild bearishness monthly.
Market returns for Indowind Energy reveal a mixed performance relative to the Sensex benchmark. Over the past week, the stock has recorded a return of 9.63%, outperforming the Sensex’s 0.96%. The one-month return stands at 4.69%, again ahead of the Sensex’s 0.86%. However, year-to-date and one-year returns show declines of -32.17% and -20.97% respectively, contrasting with Sensex gains of 8.36% and 9.48%. Over longer horizons, the stock has delivered a 29.12% return over three years, trailing the Sensex’s 37.31%, but has outpaced the benchmark over five and ten years with returns of 536.22% and 369.05% compared to Sensex’s 91.65% and 232.28% respectively.
Considering Indowind Energy ? Wait! SwitchER has found potentially better options in Power and beyond. Compare this micro-cap with top-rated alternatives now!
- Better options discovered
- Power + beyond scope
- Top-rated alternatives ready
Additional factors influencing the evaluation adjustment include the company’s management efficiency, which remains modest as reflected by the low ROE of 1.20%. The flat financial performance in the recent quarter, coupled with a significant contraction in nine-month PAT, underscores challenges in maintaining consistent profitability. Interest expenses at their highest quarterly level may also weigh on future earnings potential.
Despite these near-term headwinds, Indowind Energy’s low debt-to-equity ratio of 0.09 times suggests a conservative capital structure, which could provide resilience amid market fluctuations. The company’s operating profit growth rate of 31.81% annually over five years indicates a capacity for long-term expansion, although this has yet to translate into robust returns on equity or capital employed.
Shareholding patterns reveal that the majority of shares are held by non-institutional investors, with institutional holding at a minimal 0.05%. This ownership structure may influence liquidity and market perception of the stock.
In summary, the revision in Indowind Energy’s investment evaluation reflects a nuanced picture: strong quarterly operational metrics contrast with subdued longer-term profitability and mixed technical signals. The stock’s valuation appears discounted relative to peers, yet low returns on equity and flat financial trends temper enthusiasm. Investors are advised to consider these multifaceted factors when analysing Indowind Energy’s position within the power sector landscape.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
