KRChoksey's report on Inox WindINOX Wind has posted numbers which are slightly below our expectations. The company has posted net sales of INR 10082.2 Mn in Q2 FY16 which is 86% higher in Q2FY15 which was at INR 5431.3 Mn and in line with our estimates of INR 1002.5 Mn. The EBIDTA Stood at INR 1370.2 Mn which is 57% higher than Q2FY15 which was at INR 870.4Mn however below our estimates of 1419Mn. The PAT for Q2FY16 was at INR 891.3 Mn which is higher 63% on Y-o-Y basis and slightly below our estimates of INR 932.5Mn.Valuation: We believe stock is currently trading at very attractive levels. We are expecting revenue to grow from INR 27099Mn to 63459Mn and PAT to grow from INR 2964Mn to INR 7312Mn between FY15-FY17 respectively. The sector has the positive support from government, as the law is passed for exemption of excise duty of 12.5% to zero for wind operated electricity generator companies which operates in components such as tower, nacelle, rotor, blades and wind turbines, etc. Government is also supporting for wind energy sector with added incentives like accelerated depreciation, preferential rates for the sector, green corridor, proposed RGO and bank loans up to INR 150Mn as priority sector lending etc are likely to maintain earnings for the company. We are valuing stock 17x its FY17e EPS of INR 32.9 and arrived at a price target of INR 560 which gives an upside of 40% from current levels, says KRChoksey research report.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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