Suzlon vs Inox Wind: Which Wind Energy Stock Should You Buy After March Quarter Results?

India’s renewable energy sector is gaining momentum, with wind energy companies like Suzlon Energy and Inox Wind reporting significant growth in their March quarter (Q4 FY25) results. Investors are now evaluating which stock offers better prospects. This article compares their financial performances, market positions, and future outlooks to help you make an informed investment decision.

Suzlon Energy: Record-Breaking Quarter and Robust Order Book

Q4 FY25 Performance:

• Net Profit: ₹1,182 crore, a 365% year-on-year increase.

• Revenue: ₹2,969 crore, up 91% from the previous year.

• EBITDA: ₹500 crore, with a margin of 16.8%.

• Order Book: 5.5 GW, the highest in the company's history.

Suzlon's impressive performance is attributed to increased deliveries, operational efficiency, and a focus on Commercial & Industrial (C&I) and Public Sector Undertaking (PSU) clients, which now constitute approximately 80% of its order book. The company's manufacturing capacity has expanded to 4.5 GW, enhancing its ability to meet growing demand.

Analyst Insights:

• Motilal Oswal: Buy rating with a target price of ₹83, citing a 27% upside potential.

• ICICI Securities: Buy rating with a target price of ₹80, highlighting strong order execution.

• Morgan Stanley: Overweight rating with a target price of ₹71, noting strategic investments in manufacturing.

Inox Wind: Significant Profit Growth Amid Market Volatility

Q4 FY25 Performance:

• Net Profit: ₹190.34 crore, a 391% year-on-year increase.

• Revenue: ₹994 crore, up 96% from the previous year.

• EBITDA: ₹290 crore, with a margin of 29.2%.

• Order Book: 3,286 MW, a 28% increase year-on-year.

Inox Wind's strong financial results reflect improved operational efficiency and a growing order book. However, despite these gains, the company's stock experienced a 3.2% decline post-results, possibly due to market volatility or profit-taking.

Analyst Insights:

• Nuvama: Buy rating with a target price of ₹236, indicating a 25% upside.

• ICICI Securities: Buy rating with a target price of ₹230, emphasizing growth potential.

• JM Financial: Buy rating with a target price of ₹216, reflecting confidence in future performance.

Investor Outlook: Choosing Between Suzlon and Inox Wind

Suzlon Energy offers a compelling investment opportunity with its record-breaking profits, substantial order book, and strategic focus on C&I and PSU clients. The company's expanded manufacturing capacity positions it well to capitalize on the growing demand for renewable energy solutions.

Inox Wind, while showcasing impressive profit growth and operational efficiency, faces challenges with market perception, as evidenced by the recent stock decline. However, the company's strong order book and positive analyst outlook suggest potential for future gains.

Recommendation: Investors seeking a company with a strong market presence and growth trajectory may prefer Suzlon Energy. Those looking for a potentially undervalued stock with efficient operations might consider Inox Wind. As always, investors should assess their risk tolerance and investment goals before making a decision.