Buy INOX Wind; target of Rs 425: ICICI Securities

ICICI Securities research report on INOX Wind

INOX Wind (INOX), a wind turbine supplier, is rebuilding its business. That said, we note that policy discontinuity in the wind sector did put INOX a bit under the weather between FY18-FY22. However, wind OEMs are now set to reap the benefits with a string of positive policy changes. Aided by a newly re-laid policy pitch, the company is priming itself by monetising its assets and reducing external debt. Under a grid dominated by renewables, wind has its place owing to complementarity with other RE resources. Consequently, we expect wind capacity addition to rise from 2GW in FY23 to >6.5GW in FY26E.

Outlook

INOX is poised to see its earnings rebound with the execution of 600MW/850MW in FY25E/FY26E. We expect earnings at INR 4.4bn in FY25E and INR 6.5bn in FY26E and initiate with a BUY and TP of INR 425 (based on 25x FY26E EPS).