Suzlon Energy vs Inox Wind: Which Multibagger Stock Offers Better Investment Potential
A Comparative Analysis of two multibagger stocks in this article. Renewable Energy remains one of the most preferred and hottest investment trends currently. Two stand out of such stocks that caught every investor’s eye include Suzlon Energy and Inox Wind. Both the companies have been on an impressive growth curve, touching fresh 52-week highs on August 13, 2024, with Suzlon Energy reaching Rs 84.40 and Inox Wind at Rs 237. Even though both are on a similar rise in the stock prices, their market performances and outlooks are pretty different. Let’s dive deep into a detailed comparison and see which stock is the better investment option.
Stock Performance Overview:
Among the key renewable energy players of India are Suzlon Energy and Inox Wind. Their stories of stock movements, however are different from each other:
Suzlon Energy: The stock has risen by a whopping 252% from its 52-week low of Rs 21.51 in August 2023 to Rs 76.47. Despite a recent drop of 3.01% on the last trading day, its market cap is Rs 1.04 lakh crore.
Inox Wind: Inox Wind shares have soared even higher, 379% from its 52-week low of Rs 47.06 in September 2023. The stock closed at Rs 225.55, with a market cap of Rs 29,407 crore, which has shown significant strength in recent times.
Technical Analysis: RSI and Momentum
Relative Strength Index is a very crucial index for investors to make their decisions to buy or sell the stocks. This technical index computes the overbought or oversold status of the stock:
Suzlon Energy: Suzlon Energy’s RSI stands at 60.8. Thus, it falls in a neutral range. It’s neither overbought nor oversold, which suggests a moderate interest and stability in the stock. Therefore, long-term investors would attract.
Inox Wind: With an RSI of 72.2, Inox Wind is in the overbought position. This could be a very early sign of profit booking for the stock since it has been trading at a higher price than its intrinsic value.
In view of analyst recommendations, this is one of those firms where experts have widely contrasted opinions, while many analysts recommend Suzlon Energy since it is stable in value, and some support the firm for its growth values.
Samco Securities research analyst, Divyam Mour said the Suzlon Energy has managed to sustain good financials, hence becoming a safer play for long-term investors. According to him, he also predicted that in the short term, its stock could well touch Rs 90 and rise up to Rs 100.
Mandar Bhojane of Choice Broking as research analyst feels Inox Wind would be more in shape than Suzlon, looking forward to having better prospects from a growth and balance-sheet standpoint, thereby proving out a better play for a more cautious investor. Still, he admitted Suzlon Energy would make a relatively more attractive high-risk play high reward as perceived upon potential recoveries.
Kushal Gandhi, Technical Analyst at StoxBox, believes that Inox Wind is a better performer as it is accompanied by the bullish chart patterns and the increasing demand from the buyers. He advises to buy Inox Wind with a target price of Rs 260.
Which Stock is a Better Investment?
Both stocks have done pretty well, but they serve two different types of investors:
Suzlon Energy is one such attractive opportunity for conservative investors seeking stability and long-term growth. While it has recently dipped, the consistent history and price potential make Suzlon Energy a great investment.
Inox Wind offers more risk for more reward. The stock is currently trading at a premium, but it has bullish momentum and its technical indicators are strong; hence, it is something that can be considered to take on more risk to get higher returns.
Conclusion:
Both Suzlon Energy and Inox Wind have great potential, but it all depends on the risk tolerance of the investor. If you want something stable and steady, then Suzlon Energy would be the better choice for you. But if you could take an aggressive approach with volatility, then Inox Wind would give you better returns.
As always, make sure to conduct thorough research and consider your investment goals before making any decisions.
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