Inox Wind Limited (NSE:INOXWIND) Analysts Just Slashed This Year's Estimates
The analysts covering Inox Wind Limited (NSE:INOXWIND) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
After the downgrade, the four analysts covering Inox Wind are now predicting revenues of ₹58b in 2027. If met, this would reflect a sizeable 31% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 78% to ₹3.53. Previously, the analysts had been modelling revenues of ₹69b and earnings per share (EPS) of ₹4.64 in 2027. Indeed, we can see that the analysts are a lot more bearish about Inox Wind's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for Inox Wind
Despite the cuts to forecast earnings, there was no real change to the ₹112 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Inox Wind's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Inox Wind'shistorical trends, as the 43% annualised revenue growth to the end of 2027 is roughly in line with the 44% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So it's pretty clear that Inox Wind is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Inox Wind. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Inox Wind after the downgrade.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Inox Wind analysts - going out to 2029, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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