Stake Deal: Inox Wind sold stake in this company, deal done for 175 crores, great rise in stock

News Topical, Digital Desk : Stake Deal: Shares of Inox Wind Ltd. saw a rise on Tuesday. The company has announced that it has sold shares worth Rs 175 crore in its subsidiary company Inox Renewable Solutions Ltd. to investors.

In this deal, the valuation of the subsidiary company has been fixed at around Rs 7,400 crore. This subsidiary company was earlier known as Resco Global Wind Services Private Limited and is working in the engineering, procurement and construction (EPC) sector. After this deal, the stock is seeing a rise. The stock has seen a rise of about 4.10 percent at 10 am, after this rise the stock was trading at around 145.73.

Brokerage opinion
On the other hand, brokerage firm Nuvama has reduced its price target on Inox Wind by 19% from Rs 236 to Rs 190. The company retained its rating "Buy". Nuvama said that the company executed 146 megawatts (MW) in the June quarter, while the general market expectation was 180 MW. In the first quarter results announced last week, Inox Wind's net profit grew 134% year-on-year to Rs 97.3 crore from Rs 41.6 crore in the same period last year. Profit before tax (PBT) grew 167% to Rs 138 crore and net profit (cash profit) grew 168% to Rs 186 crore. 

How were the results? The company's revenue grew 29.2% to Rs 826.3 crore in the June quarter from Rs 639.2 crore last year. At the same time, EBITDA grew 36.5% to Rs 183.8 crore from Rs 134.7 crore last year. EBITDA margin increased from 21% to 22.2%. The company's order execution stood at 146 MW in the June quarter, while the total order book remains at around 3.1 gigawatt (GW). Inox Wind shares rose 2.36% to close at Rs 140.27 per share in Monday's trading session. However, the stock has fallen 15.9% in the last one month and has declined 25.1% so far this year.

Read More: Stake Deal: Inox Wind sold stake in this company, deal done for 175 crores, great rise in stock