During the quarter under review, Inox Wind Ltd’s (IWL) revenue de-grew by 11% on qoq basis due to lack of availability of substation for SEC-I & II orders, however situation has improved since February, and management expects to increase the commissioning activities, once substation is ready. On the margin front, EBIDTA margin improved to 15.7% in Q3FY19 as compared to 12% in previous quarter on account of stock adjustment.

Outlook and Valuation: Considering the changing dynamics of renewable energy consumption and government’s thrust to auction 10GW wind capacity by year 2028, we are bullish on the sector, and hence, have a positive outlook on IWL. At the CMP of `68, stock is available at PE multiple of 5.3x its FY2020E EPS of `13. We recommend a BUY with revised target price from `120 to `110 on account of delay in commissioning of order.

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