Indowind Energy Limited

Utilities — Utilities - Renewable · NSE

₹8.45₹0.00 (0.00%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Indowind Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Indowind Energy Limited generates and distributes power in India. The company owns, develops, operates, and maintains wind farms and wind power generation assets.

IndustryUtilities - Renewable

SectorUtilities

Employees69

Annual revenue₹40 Cr

How does it make money?

Turns over ₹40 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 69 employees supports ₹58.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin30.7%

Net margin0.0%

Revenue / employee₹58.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NTPC LTDP/E 11.0x · ROE 13.7%

POWER GRID CORP. LTD.P/E 14.6x · ROE 15.8%

TATA POWER CO LTDP/E 29.3x · ROE 9.8%

What is its competitive advantage?Little sign of one

Returns on capital of 1.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE1.2%

ROE0.0%

Peer median ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +19% while net margin moved -100% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+19%

Margin effect-100%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.16 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

42/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

37/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

120.7x

2Y Median

61.0x

28 monthly readings · mean 61.3x · range 25.4x–129.5x

Sector Median

14.6x

median of 3 sector peers

⚠️Current valuation is approximately 98% above its 2y median of 61.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 724% above the peer median of 14.6x.

vs. its own history

Expensive

61.0x median over 28 months · +98%

vs. sector peers

Expensive

14.6x median of 3 peers · +724%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

120.7x

P/B

0.45x

EV/EBITDA

11.0x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 84% over 3 years.
Return on equity is rising
ROE has improved from -8.4% to 0.0%.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 42.8% to 30.7% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Valuation above its historical average
At 120.7x the stock trades 98% above its own median of 61.0x.

Red Flags

6 items require attention · 4 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 3.09x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.1 points, from 42.8% to 30.7%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.9x to 1.5x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 41% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 84% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 42.8% to 30.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 3.09x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 98% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 5.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 29%✓ 30.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹19 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 5.9% CAGR
Latest reported year was -27.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

2 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 2 neutral · 7 weak

Market Cap

₹136 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

120.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.45x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.07

Profitable

Profitable on a per-share basis

ROE

0.0%

Weak

Weak capital efficiency

ROCE

1.2%

Weak

Low return on total capital employed

Debt/Equity

3.09x

High

High leverage

Revenue Growth (YoY)

-27.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-35.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹19 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹8.45

Operating Margin

24.7%

Good

Healthy core-business profitability

Net Margin

-0.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

20.69

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

8.6 / 8.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹34 Cr	₹39 Cr	₹35 Cr	₹40 Cr	+5.9%
EBITDA	₹15 Cr	₹18 Cr	₹13 Cr	₹12 Cr	-5.2%
EBITDA Margin	42.8%	46.1%	36.4%	30.7%	—
PAT (Net Profit)	-₹19 Cr	₹7 Cr	₹2 Cr	₹0 Cr	—
EPS	₹-1.68	₹0.64	₹0.14	—	—
ROE	-8.4%	3.1%	0.6%	0.0%	—
ROCE	0.4%	3.7%	1.8%	1.2%	—
Total Debt	₹60 Cr	₹25 Cr	₹13 Cr	₹10 Cr	-45.8%
Free Cash Flow	₹0 Cr	-₹9 Cr	-₹18 Cr	-₹19 Cr	—

🟢 Revenue has grown at 5.9% a year over 3 years.

🔴 EBITDA has shrunk at 5.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 42.8% to 30.7% over 3 years (-12.1 pts).

🟢 PAT (Net Profit) has turned positive, from -₹19 Cr to ₹0 Cr.

🟢 ROE has risen from -8.4% to 0.0% over 3 years (+8.4 pts).

🟡 ROCE has held roughly flat at 1.2% over 3 years.

🟢 Total Debt has shrunk at 45.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹0 Cr to -₹19 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹348 Cr

Total Liabilities

₹40 Cr

Total Debt

₹10 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹22 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

50.4%

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%

Recent News

1 mixed5 general

Indowind Energy (INDOWIND.NS) Slips 1.77% to ₹8.33 as Stock Tests Lower Support Zone - EMA Signal

https://www.siam.in/, 15 Oct

Indowind Energy vs Nifty 50: Share Price Performance Compared

Univest, 29 Sept

Indowind Energy Limited (NSE:INDOWIND) Investors Are Less Pessimistic Than Expected

Simply Wall Street, 31 Jan

Indowind Energy Ltd is Rated Strong Sell

MarketsMojo, 09 Oct

Indowind Energy rights issue opens today. Important dates, price, entitlement, other details

Livemint, 01 Dec

Indowind Energy Q2 FY27 Preview: Share Price & Trends

Univest, 16 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-27.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟡Financial HealthAdequate9/20

🔴GrowthWeak7.6/20

🔴ProfitabilityWeak5.9/15

🔴ValuationDemanding6.2/15

🔴RiskHigh3.7/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 29%30.7%
✗Free cash flow remains positive-₹19 Cr
✗Interest cover stays above 3x1.5x
✓Revenue growth stays above 4% a year5.9% CAGR
✓Debt / EBITDA stays below 2x0.8x