Buy INOX Winds; target of Rs 256: KRchoksey

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26 Aug, 2025 12:21

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KRChoksey research report on INOX WINDSInox Winds has posted Q3FY16 & 9MFy16 numbers which were below our expectations. The company has posted net Sales stood at INR 9414.4 Mn which was an increase of 1% y-o-y and lower by 6.6% q-o-q. EBIDTA was at INR 1545.3 Mn with an increase of 0.9% y-o-y and 12.8% q-o-q. PAT stood at INR 1030.1 Mn which was an increase of 2.4% y-o-y and 15.6% q-o-q.Highlights: The company has signed two strategic long term technology agreement with AMSC a) Securing exclusive and perpetual license and know-how for manufacturing of 2MW ECS in India which will help them to one is to reduces dependence on AMSC and would have long term security. Second would be to improve supply chain control and cost savings due to indigenization. And lastly it would help Inox wind to reduced foreign exchange exposure. B) Collaboration for development of 3MW WTG for India which will help to improve efficiency and lower cost of generation.Sales volume for Q3FY16 was around 166 MW which was down from 200 MW in Q3FY15. For 9MFY16 it was 498 MW which was much better than 380 MW in 9MFY15. With these Inox wind saw a significant pick up in commissioning stood at 166 MW for FY16 as compared to 158 in FY15 and 384 MW in 9MFY16 as compared to 188 MW in 9MFY15Valuation: The sector has the positive support from government for wind energy sector with added incentives like accelerated depreciation, preferential rates for the sector, green corridor, proposed RGO, etc, but the concern remain for the subsidy given by government and also entrant of the new foreign players. We are valuing stock 13x its FY18E EPS of INR 31.5 and arrived at a price target of INR 410 which gives an upside of 60.3% from current levels. 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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