ICICI Securities Maintains 'Buy' On Inox Wind, Says Synergies From The New Businesses To Benefit The Stock

ICICI Securities Report

Stocks to Buy: We maintain Buy on the stock with an SoTP-based target price of Rs 245/share, valuing the wind business at 35 times FY26E EPS.

Inox Wind Ltd. is benefitting from the improvement in industry prospects. Due to industry slowdown and low execution, Inox Wind saw a substantial spike in debt from FY17-FY23. The company has been deleveraging and its net debt reduced to ~Rs 6.5 billion by end-FY24.

In addition, the industry is looking up and a revival led by a slew of policy actions is in the offing along with strong bidding activity for RE projects with wind component of 10–12 GW in FY24.

Inox Wind has witnessed a sharp improvement in order inflow (at 2.3 GW in FY24). This inflow was largely driven by 1,500 MW of order from CESC, which may be executed over the next three–four years. This has improved execution growth visibility over the next three–four years and should substantially improve execution growth over the next one–two years.

Key risks:

1. Slowdown in order inflow; and

2. slowdown in RE project bidding.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.