Stock Analysis

The 24% return this week takes Inox Wind Energy's (NSE:IWEL) shareholders one-year gains to 57%

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Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. For example, the Inox Wind Energy Limited (NSE:IWEL) share price is up 57% in the last 1 year, clearly besting the market decline of around 3.0% (not including dividends). That's a solid performance by our standards! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

Since the stock has added ₹2.1b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Though if you're not interested in researching what drove IWEL's performance, we have a free list of interesting investing ideas to potentially inspire your next investment!

Given that Inox Wind Energy didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Inox Wind Energy actually shrunk its revenue over the last year, with a reduction of 10%. Despite the lack of revenue growth, the stock has returned a solid 57% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

NSEI:IWEL Earnings and Revenue Growth October 4th 2022

This free interactive report on Inox Wind Energy's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Inox Wind Energy shareholders should be happy with the total gain of 57% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 110% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Inox Wind Energy better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Inox Wind Energy you should be aware of, and 2 of them can't be ignored.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IN exchanges.

Valuation is complex, but we're helping make it simple.

Find out whether Inox Wind Energy is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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Inox Wind Energy

lnox Wind Energy Limited, together with its subsidiaries, engages in the manufacture and sale of wind turbine generators (WTGs) in India.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Future Growth0
Past Performance0
Financial Health1

Read more about these checks in the individual report sections or in our analysis model.

Overvalued with worrying balance sheet.