Outlook & Valuation: We expect Inox Wind to report exponential growth in top-line and bottom-line over FY2019-20E. The growth would be led by changing renewable energy industry dynamics in favor of wind energy segment viz. changes in auction regime from Feed-In-Tariff (FIT) to reverse auction regime and Government’s guidance for increasing wind energy capacity from 34GW currently to 140GW by 2030. We believe INOX Wind is in a sweet spot to tap the upcoming opportunity in renewable energy segments. At the CMP of `101, Inox Wind is trading at 6x FY2020E EPS of `17.4. Considering the above positives, we recommend BUY on Inox Wind and assign a multiple of 7.5x on FY2020EPS to arrive at a Target Price of `130 (potential upside of 29% over a period of next 12-18 months).

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