Buy Inox Wind; target of Rs 240: ICICI Securities

ICICI Securities's research report on Inox Wind

Inox Wind (INOX) has reduced its external debt to zero with fresh infusion from promoters in Q1FY25. Thus, its concerns on debt are now a thing of the past. Its business fundamentals have never looked better with bulging orderbook of 2.9GW (a high in its history). Moreover, it received 0.6GW of orders during Q1 from a bevy of ustomers, reducing the concerns on its dependence on a single client. Its attempt to set the wheels on the right path has started yielding results. In Q1FY25 it all came together – execution ramped up to 140MW (vs 66 MW YoY). As a result, revenue grew 2x, EBITDA margin improved to 21.3% and PAT stood at INR 472mn (vs loss last year). We expect execution of 0.75GW/1.2GW for FY25/26E – drawing comfort from 2.9GW orderbook. We reiterate BUY with a revised TP of INR 240 (vs INR 180 earlier).

Outlook

We maintain BUY rating on the stock with a revised target price of INR 240/share, valuing the wind business at 35x FY26E EPS.