Kuldeep

[Sunil Gurjar, CFTe @sunilgurjar01]

A goldmine for Microcap Investor!!

Bookmark it!!

[Kuldeep @Kuldeep19864433]

@equitybyaadi Nice

[Kuldeep @Kuldeep19864433]

@RahulRao_1992 Excellent 💯

[First Principles Investing @RahulRao_1992]

Inox Wind Group is one big circle jerk.

Before we get into it - A few Disclaimers:

1. NOT invested.

2. We write on special situations on X, Substack and on other media platforms. Please treat them as STARTING POINTS FOR YOUR OWN RESEARCH. These are NOT recommendations.

3. This note pertains to just one part of the demerger and may or may not not drive outcome on the stock level.

So, where were we?

Inox Wind Group is one big circle jerk...

Inox wind gives EPC work to Inox Renewable Services (formerly Resco), O&M to Inox Green etc etc.

The interlinkages are significant create the perfect recipe for favouring one entity over another.

That's not our problem. Be that as it may. Live & let live. YOLO.

The point of contention here is the Demerger of "Evacuation infrastructure" from Inox Green into Inox Renewables (formerly Resco) and the valuation at which it was done.

Here's the story:

1. Inox Green's EPC business was sold to Resco in a "slump sale" for ₹4.69 crore in 2021.

That same platform - Resco - now IRSL - today is being valued at ₹7,400+ crore in August 2025 basis private deals.

This ₹7,400 cr number is to valuations what a b**b job is to b**bs.

Propped up. Looks good. Not the real thing.

Here's the story:

1. In 2021, Inox Wind (Parent) facilitated the trasnfer of Inox Green's EPC business to Resco (also a subsidiary) on a slump sale basis a valuation report by 'Sparsh Singla & Associates' for ₹4.69 cr.

It had Assets worth ₹986 cr and Liabilities worth ₹981 so book value was around 4.59 cr.

The valuation report shows no Fixed assets like Equipment etc. The balance sheet was almost entirely made up of Inventories, receivables on asset side and payables and borrowing on the liabilities side.

That's how Resco became the group's "EPC arm"

2. In September 2024, Resco raised ₹350 cr from Investors (Authum, JM finacial etc) at ₹267/share and simultaneously converted an ICD - Inter corporate Deposit of ₹389 cr (from Inox Wind) into equity at the same ₹267/share.

This was a private deal so no valuation report is required valuing the group EPC business at ₹4300 cr.

The only remotely valid signal here is that supposedly Independent investors pumped in ₹350 crore - the cash flow statement shows ₹337 cr came in.

I guess the story they're selling is we make ~1.2 cr per MW (Topline) of EPC and we have a 3.2GW of order-book outstanding.

In September 2024, I guess that was easy to believe.

3. In August 2025, Inox Wind sold a 3.06% stake in IRSL to undisclosed third-party investors for ₹175 crore, at a per-share price of ₹353.

This transaction implied an IRSL standalone valuation of approximately ₹5,720 crore, or around ₹7,400 crore on a post-merger basis (including the substation business coming in from Inox Green).

The ₹7,400 crore was the headline media ate up. losers.

Except these were not "investors" as the company claimed but "various parties of the group" as Inox Wind's Q4FY26 auditor report states.

Inox Renewables (formerly Resco) reported FY25 sales of ₹217 crore and with an EPC business EBITDA margin of say 15% (Too generous), an EBITDA of ~₹30 cr.

How much is an EPC business doing ₹30 cr in EBITDA worth?

₹7400 cr?

4. On 29th June, 2026, Inox Renewable Solutions Limited (“IRSL”) for around Rs. 50 Crore, at an implied ₹359 per share.

This is even more hilarious.

In the filing they say shares have been divested to 'certain third parties' and literally below that - "Yes, these transactions are considered as related party transactions..."

5. Now comes the even more interesting part.

Using the Income method of valuation (DCF based on management estimates), the valuer (Finvox Analytics) estimated "Evacuation Infrastructure" to be 32.5/share.

For Resco, basis Income method (Management based DCF) reported value is �� ₹267/share.

But you remember, ₹267 per share came from a private deal in September 2024 to begin with.

It's obviously based on 'projections' from management.

If you uncover the FY25 financials reported by Inox Renewables you get ₹217 cr Revenue, but their reported EBITDA is ~₹95 cr.

We know EPC cannot get you 40%+ EBITDA margins rather EPC is ~15% = ₹31 cr, as we previously mentioned.

What about the remaining ₹65 cr. Where did that come from?

Most of it likely came from the "Evacuation Infra". The same asset Inox Green shareholders agreed to "donate" to Inox renewables (IRSL).

Firstly, it seems ridiculous that Revenue and EBITDA from The "evac infra" was included in IRSL's FY25 P&L when it was not legally a part of the Inox Renewables (IRSL).

Secondly, the "projections" on which 267/share valuation is based most likely included more at least 50% of EBITDA contribution from "Evacuation Infra" itself.

This is circle jerk on a whole new level.

The 'Notice to shareholders' document seeking shareholder approval clearly mentions (p-497) that this asset is set to start receiving at least ₹44/year from FY26 with 95% EBITDA margin.

This same "Evacuation infra" was valued at 32.5/share of ₹1325 cr on Asset basis for Inox Green Shareholders.

The Inox Renewables EPC business was valued at ₹267/share or ₹4323 cr. It had Revenue of ₹198 cr and a PAT loss.

Inox Green shareholders who owned 44% in the "Evac Infra" asset got diluted to 9.5% in the IRSL.

Bamboozled is a soft word.

Anyway, the story still has the "we will increase EBITDA from ₹150 cr to ₹600 cr" and if that turns out maybe overall this demerger might still pan out alright.

After what I've seen, I'll just move on with life. Personally.

Disclaimer: Not invested.

[Kuldeep @Kuldeep19864433]

@MayankKapur16 Thank you. Doing nice work for community.

[Aditya Aggarwal @equitybyaadi]

Glad to see Guruji’s teachings shared in @equitybyaadi Investor conference, 2025 is reaching mass retailers that will help them in their investing journey.

[Aditya Aggarwal @equitybyaadi]

Radhe Radhe 🙏

Sandeep met me in an AGM for the first time though we didn't have any long talks. I knew him because he had attended some of my twitter spaces and when I got to know that he has invested 90% of his PF in a single stock I was shocked. I called him and asked to get out of it immediately since the company had a lot of red flags. Today the stock is down 94% from his buying price. I rarely call anybody like this but that day I was forced to since I cannot see somebody who is helping thousands of people around him to go into loss. He exited in time and got into better fundamentally sound stocks.

From there onwards our bond grew stronger and here is what he has to say........

https://t.co/VbyrjgsOmo via @YouTube

[Aditya Aggarwal @equitybyaadi]

Radhe Radhe 🙏

You know what is the best way to assess if a company will be able to complete the order book is?

To study it’s history.

What kind of orders they have executed?

What was the scale of those orders?

Whether they were able to execute those orders in time?

Sometimes past tells where the future is.

[Aditya Aggarwal @equitybyaadi]

Radhe Radhe 🙏

In this video I have discussed potential sectors of the next bull market once the geopolitical factors normalise.

Kindly like, subscribe and press the 🔔 icon. Also kindly retweet for the benefit of the investing community.

https://t.co/sofXm1lX0U via @YouTube

[Kuldeep @Kuldeep19864433]

@arc1471 Can share name?

[Aditya Aggarwal @equitybyaadi]

Radhe Radhe 🙏

Equitybyaadi Investor conference was power packed by sessions on:

Power Sector
Electronics & Semiconductor
Patterns in Investing
Microcap Investing tailwinds & headwinds
Redflags in Investing journey
Demergers

The sessions were delivered by Industry experts along with veterans having 3 decades of experience in microcap investing.

https://t.co/8KUhpFxhyK via @YouTube

#stockmarket #microcapinvesting #powersector #semiconductor #demergers #redflags #headwinds #tailwinds

[Kuldeep @Kuldeep19864433]

@reachanandl Income to independence

[Kuldeep @Kuldeep19864433]

@_healthZwealth_ Which book is this?

[Kuldeep @Kuldeep19864433]

@logical_traderr Aether

[Kuldeep @Kuldeep19864433]

@ParthaAwe Sir your take on ship building company and which company will do better in future

[Kuldeep @Kuldeep19864433]

@soicfinance I'm not a SOIC tribe member. If we pay for this, would we also get the access to Part-1?@soicfinance

[Kuldeep @Kuldeep19864433]

@RahulRao_1992 Kindly share the PPT of aerospace and defence in the WhatsApp group. I have attended webinar.

[Kuldeep @Kuldeep19864433]

@Naam_kafi_hai Kuldeep

[Kuldeep @Kuldeep19864433]

@aaditsh AI

[Kuldeep @Kuldeep19864433]

@Keval_IM Name please @Keval_IM