Inox Wind (INOXWIND)

FairStock Score: 60/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 57.48% and 5-year revenue CAGR of 37.99% show strong expansion
• Profit growth of 151.99% with latest quarter net profit of ₹127 Cr on sales of ₹1,207 Cr demonstrates improving margins
• Low debt/equity of 0.17 provides financial stability
• Piotroski F-Score of 7/9 indicates solid fundamentals
• Promoter holding of 44.18% aligns interests with minority shareholders

Concerns

• P/E of 31.73 and EV/EBITDA of 126.06 imply a very rich valuation
• Negative free cash flow of ₹-268 Cr raises questions about earnings quality
• Price of ₹101.90 is far above the Graham number of ₹52.84, giving a margin of safety of -74.35%
• Zero dividend yield and an Altman Z-Score of 2.51 suggest caution

AI Analysis

The figures tell a tale of fantastic growth but a demanding price. Inox Wind's sales have grown 57.48%, profits are up 151.99%, and the five-year revenue CAGR of 37.99% shows this isn't a one-quarter wonder. The latest quarter continues that momentum with sales of ₹1,207 Cr and net profit of ₹127 Cr. However, as Graham taught, price is what you pay; value is what you get. At ₹101.90, the market cap is ₹15,922 Cr, nearly 32 times earnings. The book value is only ₹29.20, so I am paying 3.49 times book for a business earning 9.94% on equity. That is not a bargain. The Graham number of ₹52.84 implies a deep value price; with market price far above, my margin of safety is negative 74.35%. Even the Altman Z-score of 2.51 puts the company in a cautionary zone. There is some comfort: debt/equity is 0.17, so the balance sheet is not stretched. Return on capital is 11.52%, respectable but not outstanding. The Piotroski F-Score of 7/9 indicates decent financial health. Yet, I must ask: where is the cash? Free cash flow is negative ₹268 Cr, meaning earnings are being consumed by working capital or capex. That is common for fast growers, but it erodes ownership value. Dividend yield is zero, so my reward must come entirely from capital appreciation. With an EV/EBITDA of 126.06, the market is pricing in flawless execution for years. As Buffett would say, it may be a wonderful business, but at this price it is a wonderful business at a far-too-wonderful price. I'd watch, not buy.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer