Nuvama initiates coverage on Suzlon and Inox Wind, sees upside potential of up to 33%

Inox seems to be a beneficiary of the and favourable , coupled with its order book climbing to new highs, the brokerage said.

The revival of Inox is led by the spike in evening power demand (non-solar hours), catalysing tenders to move towards RTC/wind-solar-hybrid coupled with C&I demand from industrial consumers.

"Reviving macros in a duopolistic wind market shall enable it to achieve OB/revenue CAGR of 44%/73% (FY24–27E)," said Nuvama.

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In Suzlon Energy’s case, initiated a ‘buy’ rating on the stock with a target price of Rs 53, stating that the company’s growth visibility is backed by industry tailwind of 12–14GW TAM annually, technological edge (3MW-plus turbines) + 4.5GW-plus nacelle capacity, high-margin (45%) O&M services and balance sheet (D/E of 0.03x in FY24 versus 1.7x in FY23).

Further, Suzlon is the market leader in the WTG market with a 30% share and among the only two wind EPC suppliers in India, and Nuvama believes that Suzlon is capable of sustaining its lead in WTG/turnkey EPC execution, translating to OB/PAT CAGR of 21%/61% (FY24–27E).

Inox Wind and Suzlon Energy have both given multibagger returns of over 300% in the last one year to investors.

Suzlon Energy shares were trading 4% higher on BSE today at Rs 46 while those of Inox Wind were trading 1.6% lower at Rs 145 around 12:30 pm.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)