Recent Price Movement and Market Context
Inox Wind’s latest low of Rs.95.7 contrasts sharply with its 52-week high of Rs.201, reflecting a substantial depreciation of over 52% from its peak. This decline comes amid a market environment where the Sensex has demonstrated strength, recovering sharply from an initial negative opening to close at 82,851.91, up 0.43% on the day. The benchmark index remains just 3.99% shy of its own 52-week high of 86,159.02, supported by gains in mega-cap stocks.
While the Sensex trades below its 50-day moving average, the 50DMA itself remains above the 200DMA, signalling a cautiously positive medium-term trend. In contrast, Inox Wind is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the stock’s current weakness relative to both its own historical price levels and the broader market.
Financial Performance and Valuation Metrics
Over the past year, Inox Wind has underperformed significantly, delivering a negative return of 45.24%, while the Sensex and BSE500 indices have generated positive returns of 9.40% and 11.97% respectively. This divergence highlights the stock’s relative weakness within its sector and the broader market.
Despite the stock’s price decline, the company’s financial results show some areas of strength. Net sales have grown at an annualised rate of 46.29%, and operating profit has increased by 33.21%. The company has reported positive results for 12 consecutive quarters, with the latest six-month profit after tax (PAT) rising by 38.95% to Rs.209.14 crores. Return on capital employed (ROCE) for the half-year stands at a healthy 11.18%, while the inventory turnover ratio is at 2.84 times, indicating efficient inventory management.
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Debt and Profitability Concerns
Despite some operational growth, Inox Wind’s financial health is tempered by its elevated leverage. The company’s Debt to EBITDA ratio stands at 3.12 times, indicating a relatively high debt burden compared to earnings before interest, tax, depreciation, and amortisation. This level of leverage may constrain financial flexibility and increase risk, particularly in a capital-intensive sector such as Heavy Electrical Equipment.
Profitability metrics also reflect challenges. The average Return on Equity (ROE) is a modest 2.29%, signalling limited profitability generated per unit of shareholders’ funds. This contrasts with the company’s Price to Book (P/B) ratio of 2.6, which suggests a valuation premium relative to its book value. The Price to Earnings Growth (PEG) ratio of 0.5, however, indicates that the stock is trading at a discount relative to its earnings growth, a nuance that reflects mixed signals in valuation.
Institutional Holdings and Market Sentiment
Institutional investors hold a significant stake in Inox Wind, accounting for 24.53% of the company’s shares. Notably, this holding has increased by 1.29% over the previous quarter, signalling continued interest from entities with substantial analytical resources. Such holdings often provide a degree of stability, although they have not prevented the recent price decline.
The stock’s Mojo Score currently stands at 37.0, with a Mojo Grade of Sell, downgraded from Hold on 09 Oct 2025. This rating reflects the stock’s current challenges in terms of financial metrics and price performance within its sector and the broader market.
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Comparative Sector and Market Performance
Within the Heavy Electrical Equipment sector, Inox Wind’s performance has lagged behind peers and the broader market indices. While the BSE500 index has delivered an 11.97% return over the past year, Inox Wind’s negative return of 45.24% highlights its relative underperformance. This divergence is notable given the company’s reported growth in sales and profits, suggesting that market sentiment and valuation concerns have weighed heavily on the stock price.
The sector itself has seen mixed trends, with mega-cap stocks leading recent market gains. Inox Wind’s smaller market capitalisation and higher leverage may contribute to its more volatile price movements compared to larger, more diversified companies in the sector.
Summary of Key Financial Indicators
To summarise, Inox Wind Ltd’s key financial and market indicators as of 20 Feb 2026 are:
- New 52-week low price: Rs.95.7
- 52-week high price: Rs.201
- One-year stock return: -45.24%
- Sensex one-year return: 9.40%
- Debt to EBITDA ratio: 3.12 times
- Average Return on Equity: 2.29%
- Price to Book Value: 2.6
- PEG ratio: 0.5
- Net sales growth (annualised): 46.29%
- Operating profit growth (annualised): 33.21%
- PAT growth (latest six months): 38.95%
- ROCE (half-year): 11.18%
- Inventory turnover ratio (half-year): 2.84 times
- Institutional holdings: 24.53%, increased by 1.29% QoQ
- Mojo Score: 37.0 (Sell), downgraded from Hold on 09 Oct 2025
Market Dynamics and Stock Momentum
The stock’s recent eight-day losing streak and trading below all major moving averages indicate sustained downward momentum. The day’s performance saw a slight outperformance relative to the sector by 0.28%, but this was insufficient to reverse the broader trend. The stock’s market capitalisation grade remains low at 3, reflecting its smaller size and liquidity compared to larger peers.
While the company’s fundamentals show areas of growth and operational continuity, the market’s valuation and risk assessment have resulted in a cautious stance, as reflected in the downgrade to a Sell rating and the current Mojo Score.
Conclusion
Inox Wind Ltd’s fall to a 52-week low of Rs.95.7 marks a significant point in its recent price journey, underscored by a combination of high leverage, modest profitability, and relative underperformance against market benchmarks. Despite positive sales and profit growth, the stock’s valuation and financial ratios have contributed to a subdued market response. Institutional investors maintain a notable stake, but the stock’s momentum remains weak as it trades below all key moving averages.
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