InvestorQ : Why is Inox Wind going up when there is news about someone buying a stake in Suzlon?
Zohair made post

Why is Inox Wind going up when there is news about someone buying a stake in Suzlon?

Answer
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tanvi Patel answered.
1 year ago


Large overseas companies are planning to invest in India and there is some inside news that Vestas, wind energy equipment manufacturer is in talks to Buy Suzlon Energy and both companies might merge. This is positive news for the wind sector and which is helping Suzlon Energy as well.
Technically, Inoxwind is showing a strong momentum on MACD histogram and has the potential to reach a high level which is where its immediate resistance is placed. Also, Suzlon has given an 89Day EMA price breakout and has the potential to touch its 200Day EMA levels placed at 6.9.


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sara Kunju answered.
1 year ago


Inox Wind is engaged in the manufacture of power equipment for the wind/alternative energy segment. Inox Wind has turned into profits in the second quarter of the current fiscal after 4 quarters of losses. The company has a current order book position of 950 MW and that will hold the company in profits for the next few quarters of execution. Inox Wind has also started execution of its SECI project.
The stock has corrected nearly 50% from the peak and that was on the back of quarterly losses for four successive quarters. From the second quarter of the current fiscal, Inox Wind has become EBITDA positive and also net profit positive. One can look at INOX Wind as a good play on the alternate energy segment, which is a major thrust area of the current government. For long term investors, the stock does offer a positive risk-reward ratio.