Multibagger: Penny stock Inox Wind soars 1324% in 4 years; what should investors do now?

livemint.com:

₹9.96 in June 2020 to its current trading level around ₹141.85. Similarly, over the last three years, it has seen substantial growth of 588 percent, starting from ₹20.61 in June 2021.In the past year alone, Inox Wind has continued to deliver multibagger returns, with a remarkable surge of 256 percent.

However, in 2024 year-to-date (YTD), the stock has experienced periods of correction and volatility, registering a modest gain of 13.5 percent.The stock has also witnessed a decline of 3.5 percent in June, extending losses from a 6.3 percent fall in May. Despite the recent correction, domestic brokerage house Axis Securities has initiated coverage on the wind energy stock with a ‘buy’ call and a target price of ₹182, implying a potential upside of over 28 percent."With the interest-bearing debt coming down to zero, robust order book, technological readiness, and execution capability along with the government’s renewed focus on wind capacity additions, we assign a target P/E multiple of 30x on our FY26 EPS estimate.

We further adjust it for the promoter’s fund infusion and a minority stake in the Inox Green Energy Services Ltd. to arrive at our TP of ₹185/share and initiate the coverage with a BUY rating," said the brokerage.Inox Wind is a fully integrated wind energy solutions provider.

The company is engaged in the business of manufacturing and selling wind turbine generators (WTGs). It also provides erection, procurement, and commissioning (EPC), operations and maintenance (O&M), and common infrastructure facilities services for WTGs and wind farm development services.According to Axis, following the promoter infusion, Inox Wind Limited (IWL) has successfully eliminated its interest-bearing debt entirely.