Inox Wind may move to Rs 460, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "The government push towards renewable wind energy to be more particular and the targets that they have set up over the next few years of 60 gigawatts presents a huge opportunity for players in the listed space like Inox Wind. Clearly, if you look at how the financials of the company have been moving, we are quite impressed over the past few quarters, the kind of numbers that they are posting.""In terms of topline growth or order book, I would mention at this point of time, we are probably expecting the order book to increase at a substantial pace going forward, it currently has an order book of 1,220 megawatts. But the probability of bagging new orders, 5,000 megawatts orders are under acquisition, so there is a substantial amount of pie that Inox Wind can actually garner and that will provide decent amount of revenue visibility," he added."They have done a timely Capex in Madhya Pradesh, so they have added 400 nacelles and hubs, they have added 400 rotor blades, 300 odd towers and that is probably going to aid them in terms of the right capacity utilisation for the orders that will probably flow in and that execution will probably take the topline much higher than we are at, at the current juncture.""We are expecting a 48 percent compounded growth over the next two years in terms of how the topline will pan out close to that 5,950 odd crore mark. In terms of the earnings before interest, taxes, depreciation and amortisation (EBITDA) margins, there will be no royalty payments from FY16 for Inox Wind.""They are also looking at larger rotor blades, so diameter size increase has potential of greater realisations as well. So, clearly, the operating leverage benefits with optimisation efforts increase in volumes will play out on the EBITDA margins which we expect to up to 17.5 percent," he said."Now, when it comes to valuations at the current juncture, it is trading very reasonably at around 10.5-11 times. Our own expectations is 14.5 times FY17 numbers. So, we are probably looking at a target of around Rs 460 for Inox Wind over the next 12 months."