Inox Wind Ltd Drops 9.16% Amidst 52-Week Lows and Bearish Sentiment

16 February: Sharp Decline to 52-Week Low Amid Heavy Volume and Put Option Surge

Inox Wind Ltd’s share price plunged to a fresh 52-week low of Rs.98.9 on 16 February 2026, marking a 4.93% drop from the previous close of Rs.106.40. The stock underperformed its sector by over 5% and the broader market, which saw the Sensex rise 0.70%. This day also witnessed exceptional trading volume of approximately 69.46 lakh shares, with a traded value near ₹7072.79 lakhs, indicating intense investor activity despite the price fall.

Technical indicators showed the stock trading below all key moving averages, signalling sustained bearish momentum. Concurrently, the stock emerged as the most actively traded in put options, with 5,696 contracts at the ₹100 strike expiring on 24 February, reflecting heightened bearish positioning and hedging. The put option turnover reached ₹720.86 lakhs, underscoring investor caution amid elevated volatility.

This combination of heavy volume, put option interest, and price weakness extended a four-day losing streak, with the stock down over 11% during this period. The weighted average price skewed towards the day’s low, reinforcing the dominance of sellers.

17 February: Valuation Recalibration Signals Reduced Price Attractiveness

On 17 February, Inox Wind Ltd’s valuation metrics shifted from 'very expensive' to 'expensive', reflecting a moderation in price attractiveness amid ongoing market volatility. The price-to-earnings (P/E) ratio stood at 34.83, while the price-to-book value (P/BV) ratio was 2.68, both indicating a premium valuation relative to peers in the heavy electrical equipment sector.

Enterprise value multiples such as EV/EBIT at 24.19 and EV/EBITDA at 19.08 also suggested elevated earnings expectations, though these had compressed recently. Comparisons with competitors like ACME Solar Holdings and Websol Energy highlighted Inox Wind’s relatively higher multiples, increasing the risk of valuation correction if earnings growth falters.

The downgrade in the Mojo Grade to Sell, with a Mojo Score of 37.0, aligned with these valuation concerns and the stock’s recent price weakness. Operational metrics showed modest profitability, with return on equity (ROE) at 7.81% and return on capital employed (ROCE) at 9.49%, which may not fully justify the premium multiples.

18 February: Continued Price Pressure Amid Market Resilience

Inox Wind Ltd’s stock continued its downward trajectory on 18 February, closing at Rs.98.95, down 0.90% from the previous day. The stock remained below all key moving averages, signalling persistent bearish momentum. Meanwhile, the Sensex advanced 0.43%, highlighting the stock’s underperformance relative to the broader market.

Trading volumes were lower compared to the 16 February spike, but the stock’s price action remained subdued, reflecting ongoing investor caution. The lack of positive catalysts and the prevailing technical weakness contributed to the continued pressure on the share price.

19 February: New 52-Week Low at Rs.97.35 Amid Market Volatility

On 19 February, Inox Wind Ltd’s shares fell further to Rs.97.35, marking another 52-week low and extending the losing streak to seven consecutive sessions. The stock underperformed its sector by 0.55% and closed down 2.43% on the day, while the Sensex declined 1.45%, reflecting broader market volatility.

Despite the market setback, Inox Wind’s operational performance showed resilience. The company reported a 128.5% increase in profits over the past year and maintained positive results for 12 consecutive quarters. Net sales and operating profit grew at annual rates of 46.29% and 33.21% respectively, while the latest six-month profit after tax (PAT) was Rs.209.14 crores, up 38.95% year-on-year.

However, the company’s financial leverage remains a concern, with a Debt to EBITDA ratio of 3.12 times, indicating constrained debt servicing capacity. The stock’s valuation remains expensive relative to historical peer averages, with a price-to-book ratio of 2.6 and modest average ROE of 2.29%.

20 February: Week Closes at Rs.96.65, Marking Sustained Downtrend

The week concluded on 20 February with Inox Wind Ltd’s stock closing at Rs.96.65, a marginal gain of 0.10% on the day but still representing a cumulative weekly decline of 9.16%. The stock hit a fresh 52-week low of Rs.95.7 during intraday trading, underscoring the persistent downtrend.

Despite the stock’s weakness, the broader market showed resilience, with the Sensex rising 0.41% to 36,674.32 points. The stock marginally outperformed its sector on the day by 0.28%, though it remained well below all key moving averages, signalling continued bearish momentum.

Institutional investors hold a significant 24.53% stake in the company, having increased their holdings by 1.29% over the previous quarter, suggesting some degree of confidence despite the price decline. Operationally, the company’s return on capital employed (ROCE) stood at 11.18%, and inventory turnover was a healthy 2.84 times, indicating efficient management amid challenging market conditions.

Key Takeaways

Inox Wind Ltd’s week was characterised by a pronounced downtrend, with the stock falling 9.16% against a modest 0.39% gain in the Sensex. The repeated breaches of 52-week lows and heavy put option activity highlight strong bearish sentiment and investor caution. The downgrade to a Sell rating and a Mojo Score of 37.0 further reinforce the negative outlook.

Despite the price weakness, operational metrics such as consistent quarterly profitability, robust sales and profit growth, and efficient inventory management provide a nuanced picture. Institutional investors have marginally increased their holdings, suggesting some underlying confidence in the company’s fundamentals.

However, elevated leverage with a Debt to EBITDA ratio of 3.12 times and premium valuation multiples relative to peers present cautionary signals. The stock’s sustained trading below all key moving averages indicates that the bearish momentum is likely to persist in the near term.

Conclusion

Inox Wind Ltd’s performance during the week ending 20 February 2026 reflects a challenging environment marked by persistent selling pressure, valuation recalibration, and bearish market positioning. While the company’s operational growth and institutional interest offer some positives, the stock’s technical weakness and financial leverage weigh heavily on sentiment.

Investors should remain attentive to the evolving market dynamics and company fundamentals, as the current downtrend and negative rating suggest limited near-term upside. The divergence from the broader market’s modest gains underscores the stock-specific challenges facing Inox Wind Ltd in this period.

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