Mehabe score: 3 G Factor: 3 Piotski Score: 2 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 2.
Description
Inox Wind is one of the largest manufacturers of Wind Turbine Generators (WTGs) in India. We are a fully integrated wind energy solution provider engaged in providing services to IPPs, Utilities, PSUs, Corporates and Retail Investors.Site:INOXWINDMain Symbol:INOXWIND
Stock trades at 129.0, above its 50dma 105.36. It also trades above its 200dma 86.4. The stock remains bullish on techicals
The 52 week high is at 160.00 and the 52week low is at 34.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– is expected to give good quarter
Weakness
– has low interest coverage ratio.
– has a low return on equity of -11.99% for last 3 years.
– has high debtors of 538.44 days.
Competition
– The industry trades at a mean P/E of 25.9x. A B B trades at the industry’s max P/E of 130.59x. INOXWIND trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 7.0. INOXWIND has a G-Factor of 3 and Piotski scoreof 2.
– Average 1 month return for industry is 10.3%. The max 1- month return was given by CG Power & Indu.: a return of 32.12 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 166.0 cr compared to Rs 171.0 cr for period ended Sep 2020, a fall of 2.9%
Company reported operating profit of Rs 3.0 cr for period ended Sep 2021, operating profit margin at 1.8 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Sep 2021 was Rs -2.58 compared to Rs -2.36 for previous quarter ended Jun 2021 and Rs -3.42 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 778.0 cr for period ended TTM vis-vis sales of Rs 711.0 cr for the period ended Mar 2021, a growth of 8.6%. The 3 year sales cagr stood at -18.5%.
Operating margins expanded to -15.0% for period ended TTM vis-vis -27.0% for period ended Mar 2021, expansion of 1200.0 bps.
Net Profit reported at Rs -266.0 cr for period ended TTM vis-vis sales of Rs -306.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -21.0% compared to -12.0% over the last 3 Years. – The stock has given a return of 222% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is 31% vis-vis a compounded sales growth of 15% over the last 3 Years. – The compounded profit growth on a TTM basis is 16% vis-vis a compounded profit growth of -33% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 2.07% vis-vis 1.78% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 24.54% vis-vis 24.82% for Mar 2021
Conclusion
– is expected to give good quarter – has low interest coverage ratio.
– has a low return on equity of -11.99% for last 3 years.
– has high debtors of 538.44 days.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 105.36 and is trading at 129.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
