Inox Wind’s 800% rally, a brutal crash and a rebound—what’s next?
Subscribe to enjoy similar stories. Inox Wind has been making headlines lately due to the steep fluctuations in its stock price. As one of the key players in India’s race towards renewable energy, its stock appreciated by more than 800% from about ₹27 apiece in 2023 to reach a peak of ₹254 per share in September 2024.
However, this surge was followed by a sharp decline, wiping out nearly 50% of investor wealth in the subsequent months. In the past week, the stock has managed to recover about 25%. Let us delve into what has driven this volatility, and try to assess whether the recent recovery is likely to sustain.
As the world moves towards renewable energy, India is no different. While thermal coal accounts for more than half of India’s installed power generation capacity, the country has set ambitious targets for itself - 500 GW of non-fossil fuel capacity by 2030, and net zero carbon emissions by 2070. This has been backed up by increasing government spending.
The FY21 budget for renewable energy had stood at only about ₹2,600 crore, which increased six-fold in FY24, and rose further by 54% in the latest budget to ₹26,550 crore. Also Read: India’s green energy transition: A vision for a sustainable future Specifically, when it comes to wind energy, India stands fourth in the world in terms of wind power generation capacity. Wind power currently constitutes only about 10% of India’s installed capacity, and holds tremendous potential for growth.
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