UPSTOX: Stocks & Options

Advance Trading Platform

Suzlon vs Inox Wind: Which Wind Energy Stock Can Give Better Profit?

Suzlon: Indian is focused on zero carbon emissions that’s why the government is making significant strides to increase the generation of renewable energy. Companies working in the renewable energy sector will get government’s support so the shares of the companies are likely to experience exponential growth.

Let us tell you that, India is the fourth largest country with a wind energy market in the world. As of now, 10% of the wind energy makes up for the growing demand of power and electricity. Let us tell you that India has a installed capacity of 47.2 GW of wind energy as of August 2024

By 2030, India plans to have 140 GW of wind power capacity, 50% of its electricity come from renewable sources, and net zero carbon emissions by 2070. By 2029, this industry is expected to increase at a CAGR of 8%. In this guide we will discuss about the two biggest and most well-known wind energy companies, Suzlon Energy and Inox Wind and know which company will give maximum returns in the coming year.

Suzlon Energy Share

Suzlon Energy is a global renewable energy solutions provider worldwide. The company produces rotor blades, wind turbine generators (WTG), and other essential parts for wind energy generation. In addition, the company also offers services for operations and maintenance (O&M), project planning, and project execution.

The company has a domestic order book of 5.1 GW with a market capitalization of ₹85,950 crore and offers 20.9 GW of global installed capacity.

The company has shown Excellent financial performance. Talking about the financial performance of the company,  revenue of the company rose 48% to Rs 2,092.99 crore in Q2FY25 from the previous corresponding period. Similarly, the net profit of the company has improved. Suzlon reported an exceptional 96% net profit growth in Q2FY25 to ₹200.20 crore.

Also Read: Railtel Share Price Target 2024 to 2050

Inox Wind Share

Inox Wind is another most well-known wind energy company in India.  Inox Wind produces WTG and offers turnkey wind project solutions. This company also focuses on infrastructure construction, wind resource evaluation, and site purchase.

The company now has a 3.3 GW order book and a market capitalization of ₹24,907 crore. The company’s revenue for FY25 Q2 was ₹732.24 crore, representing a 97.56% YoY rise. The company’s FY25 Q2 net profit of Rs 92.89 crore shows a recovery from losses.

Financial Performance

Inox and Suzlon have shown robust sales growth. Inox’s sales have tripled since FY21, whereas Suzlon’s has doubled in just three years. Suzlon’s increased margins and debt reduction have enabled them to continuously produce profitability. Inox Wind continues to face difficulties even as it recovers and stabilizes its margins.

Suzlon has no net debt after raising capital in 2023. Inox Wind has a debt-to-equity ratio of 1.91x and aims to achieve debt-free status by the first half of FY25. Suzlon Energy has delivered a stellar return of 56.63% in 1 year and 828.32% in 3 years. Whereas Inox Wind has given a return of 180.81% in 1 year and a return of 500.74% in 3 years.

Future Outlook

Suzlon Energy Ltd

Suzlon Energy is working toward reaching the goal of up to 4.5 GW and plans to increase manufacturing capacity by FY25. Strong order book execution and the start of supplies for important orders like NTPC are the company’s main priorities. This puts the business in a good financial position to seize renewable energy opportunities.

Inox Wind Ltd

Inox Wind anticipates raising its EBITDA margins to 17% by FY25 and expanding its operating capacity to 2 GW by FY27. In addition, the business is getting ready to introduce its advanced turbine technology and backward integration.

Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information provided in Trademint.in is for educational purposes only and we do not recommend buying or selling any stocks. This information provided is only for reference purpose so we are not responsible in case investors incur any loss based on the information. We provide timely updates about the stock market and financial products to help you make better investment choices. Always conduct your own research before making any investment decision or consult a financial advisor.

Abhishek Rodi

Investor, Trader, and An Engineer! Unlock the secrets of successful investment & trading, where I will share my 5+ year journey's insights.

Leave a Comment