1. At a Glance
Once a promising IPP in wind energy, Indowind Energy is now…well, mostly in low gear. It’s debt-light, profit-light, and dividend-invisible. With a P/E of 199 and a ROE of 0.49%, this ₹250 Cr company is either misunderstood or massively overvalued.
2. Introduction with Hook
If stock investing were a cricket match, Indowind would be the guy who scored 1 run in 100 balls and still didn’t get out. The crowd’s confused whether to clap or boo.
- Market Cap: ₹250 Cr
- 5-Year Sales Growth: 10.2% (Snail mail was faster)
- ROE (Last 3Y): 1.98% (Blink and you’ll miss it)
And yet, somehow… the stock has a P/E of 199. Maybe it’s powered by sentiment, not wind.
3. Business Model (WTF Do They Even Do?)
Indowind Energy is an Independent Power Producer (IPP) with wind in its sails and cash… well, somewhere else.
- Generates & sells wind power to state utilities and corporates
- Offers wind asset management services
- Carbon credit sales & trading for ESG points
- Built wind farms & sells green power, but has no solar play (yet)
Their core biz is noble, green, and future-ready. The execution, though, feels like it’s stuck in 2005.
4. Financials Overview
Revenue vs Profit (FY14–FY25)
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|
| FY14 | 23.40 | 0.11 |
| FY20 | 20.66 | 0.06 |
| FY23 | 33.96 | -19.26 |
| FY24 | 39.71 | 7.27 |
| FY25 | 33.51 | 1.26 |
Verdict: 10 years in the business, 0 consistency. This is the kind of chart that investors show their therapist.
5. Valuation
Let’s be clear: P/E of 199 = insanity unless the stock is ChatGPT-powered.
Valuation Methods:
- Book Value: ₹21.6 → CMP ₹19.4 → Price/Book = 0.90x (looks undervalued, but…)
- EV/EBITDA: Not meaningful due to volatility
- DCF? Please. Too much wind, not enough cash.
EduInvesting FV Range™: ₹10–₹25, unless they start spinning turbines harder or announce a merger with Adani Green (jk… unless?).
6. What’s Cooking – News, Triggers, Drama
- July 2025: ₹49.5 Cr Rights Issue Approved. Equity infusion = dilution alert.
- FY25 PBT: ₹3.51 Cr → Down from ₹5.56 Cr
- Q1 FY26 Loss: ₹-4.77 Cr = One strong gust and they’re in the red again.
- Promoter holding down to 47.16% from 50.76%
- Retail Shareholders: 1.14 lakh — a curious crowd for a sleepy stock.
7. Balance Sheet
FY25 Snapshot (₹ Cr)
| Item | Value |
|---|---|
| Equity Capital | 128.80 |
| Reserves | 150.10 |
| Borrowings | 6.97 |
| Fixed Assets | 248.47 |
| Total Liabilities | 305.40 |
Key Observations:
- Debt cut from ₹60 Cr to ₹7 Cr = Good!
- But cash flows still negative = Huh?
- Reserves up, but mostly static since 2017
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | 0.32 | 4.78 | 15.07 | 20.17 |
| FY24 | -8.05 | 43.96 | -56.49 | -20.58 |
| FY25 | -9.17 | -22.50 | 32.90 | 1.24 |
TL;DR:
- Operations can’t fund growth
- Investing is erratic (windmill resale?)
- Financing is lifeline (Rights Issue proves it)
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 1.88% |
| ROE | 0.49% |
| P/E | 199 |
| Debtor Days | 59.04 |
| OPM | 31.48% |
| D/E Ratio | Near 0 |
Interpretation:
Business isn’t bleeding anymore, but it’s definitely not flexing either. P/E is nosebleed-inducing without earnings justification.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Op. Profit | OPM% | PAT | EPS |
|---|---|---|---|---|---|
| FY23 | 33.96 | 13.99 | 41% | -19.26 | -1.50 |
| FY24 | 39.71 | 15.84 | 40% | 7.27 | 0.56 |
| FY25 | 33.51 | 10.55 | 31% | 1.26 | 0.10 |
Conclusion: Strong margin business, but volumes are tiny. One maintenance glitch and the turbine coughs up losses.
11. Peer Comparison
| Company | P/E | ROE % | Market Cap (₹ Cr) | OPM % | Sales (₹ Cr) |
|---|---|---|---|---|---|
| NTPC | 14.2 | 13.6 | 3,31,722 | 28.8 | 1,88,138 |
| Adani Green | 100.4 | 14.6 | 1,67,159 | 79.3 | 11,212 |
| JSW Energy | 51.9 | 7.4 | 92,701 | 44.5 | 11,745 |
| Indowind | 199 | 0.49 | 250 | 31.5 | 33.5 |
LOL Factor: Indowind has the highest P/E and lowest ROE. A true underdog… or overhyped penny stock?
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 47.16%
- Public Holding: 52.82%
- FIIs: 0.02% (basically forgot the login)
- Retail Shareholders: 1.14 lakh
- No dividend in 12 years = Dividend Nilaya!
13. EduInvesting Verdict™
Indowind Energy is a curious cocktail of:
- Green ambitions
- Micro-cap limitations
- Cash flow inconsistency
- Delusional valuation
Unless there’s a drastic turnaround in earnings or a large acquisition, this stock is better enjoyed as a case study in “How Not to Price a Company.”
Caution: Watch the wind direction. Even turbines can stop spinning.
Metadata
– Written by EduInvesting Research | 21 July 2025
– Tags: Indowind Energy, Renewable Energy, Microcap, Rights Issue, Wind Power, Penny Stocks
