By 2026, this 52p penny inventory may flip £10,000 into…

Windar Photonics (LSE:WPHO) is a penny inventory that has completed tremendously nicely over the previous 5 years. On this time, it has gone from 18p to 52p, a achieve of practically 200%.

Previously month, nonetheless, the Windar share worth has fallen 20%. This leaves it a way beneath its common 12-month worth goal.

Let’s take a more in-depth take a look at this UK penny share to see if it’s price contemplating.

What’s Windar?

This AIM-listed firm makes LiDAR sensors that assist wind generators function extra effectively. These measure wind velocity and course, permitting a turbine to robotically alter its blades to seize extra vitality whereas decreasing mechanical stress. 

Over time, the result’s improved output and decrease upkeep prices (essential for wind farm operators in search of to maximise returns). Windar says its flagship WindEye sensor offers prospects with a return on funding inside one to 4 years.

What units the agency aside is price. Its LiDAR programs use patented compact semiconductor laser know-how, changing the costly fibre-amplified lasers generally utilized by opponents.

Financials

This clearly all sounds very constructive. So, what in regards to the firm’s financials?

Effectively, the very first thing to notice is that Windar continues to be loss-making. Within the first half of 2025, it reported a €0.7m loss after tax, wider than final 12 months’s €0.3m. Antagonistic forex adjustments had a €0.5m impression, primarily from a weaker US greenback and Chinese language renminbi towards the euro.

Arguably, these are the principle dangers right here. Windar has no confirmed observe file of profitability, which means even comparatively small forex fluctuations can have an outsized have an effect on. In the meantime, US tariffs are a headache for all corporations.

On the plus facet, the corporate is having fun with sturdy industrial momentum. In August, it received a US order for $2.6m to retrofit Vesta‘s V82s, whereas its Nexus OS software program helped gross margin rise 2 proportion factors to 62%. 

In the meantime, first-half income was up 18% to €2.7m, with heavier gross sales anticipated within the second half. Administration is assured that full-year expectations might be met, and this could see income greater than double to €9.55m. Metropolis analysts additionally count on a first-ever revenue, albeit a small one. 

In 2026, gross sales are tipped to rise to €14.6m. And there’s a €4.4m revenue on the playing cards, if forecasts show right. 

Lastly, the stability sheet is in fine condition, with a internet money place of €4.9m on the finish of June.

With gross sales and orders for 2025 already standing at 138% of 2024 income on the finish of August 2025 and with the present money place, the corporate is nicely positioned to ship on its appreciable potential.

Windar CEO Jørgen Korsgaard Jensen.

Goal

Based mostly on present forecasts for 2026, the inventory’s ahead price-to-earnings is simply 14. That appears enticing for a progress firm with a big addressable market (it’s concentrating on progress in Europe, America and Asia).

Due to this fact, it’s hardly shocking that the common 12-month share worth goal among the many two analysts overlaying the inventory is 95p. That’s 80% larger than the present stage, implying {that a} £10,000 funding may turn out to be £18,000, have been these consultants to show right.

Naturally, this far-higher goal may not come to fruition. However with a transparent path in direction of profitability and what appears to be like like an undemanding valuation, I reckon this inventory is price a more in-depth take a look at 52p.