Inox Wind Ltd. share price target

4QFY16 above estimates driven by strong execution: 4QFY16 sales stood at INR18.3b (up 97% YoY) which was above our estimate of INR15.5b. Supplies during the quarter stood at 328MW which was up 67% YoY. EBITDA was at...

8 Earnings (Rs 1bn; flat yoy) were materially below our (Rs 1.5bn) and consensus' (Rs 1.4bn)estimatesbecauseofsalesslippagetoQ4FY16. 9 Grossmarginsexpanded850bpsyoymainlyonimprovedsalesmixinfavourofhigher...

Government thrust on renewable energy: Development of renewable energy is imperative for the energy security of our import dependant nation. As a result the Government has increased the target of renewable energy to 175 GW (60 GW wind) by 2022. It is also providing various incentives to increase investments in renewable energy like accelerated depreciation, generation based incentives of Re 0.5/unit, allowing wind power as a Corporate Social Responsibility activity, duty exemption on raw materials, etc. RBI has also notified loans of upto Rs 15 cr for installation of wind mills to be classified as priority sector lending. All these measures would result in higher investment...

Inox Wind Ltd (IWL) is one of India's leading wind power solutions provider, manufacturing wind turbine generators (WTGs) and providing turnkey solutions by supplying WTGs and...

9 Adjusted PAT (Rs 947mn) was 40% higher than our and consensus estimates, driven solelybystrongerthanexpectedexecution. 8 Sharpdeclineingrossmargins(530bpsyoy)wasduetoexecutionoflowmarginorders...

Currently, IWL has an installed capacity of 550 nacelles and hubs at Una, Himachal Pradesh, 400 rotor blade sets, and a capacity of 300 towers at Rohika, Ahmedabad, Gujarat. The company is setting up a new integrated capacity of 400 nacelles and hubs, 400 rotor blade sets, and 300 towers at Barwani, Madhya Pradesh. This would take the total nacelles and hubs capacity to 950 units, rotor blades capacity to 800...

Inox Wind's Q1FY16 PAT at Rs 587mn was above our estimate led by strong execution. Order book stood at 1.2GW and expansion of capacity to 1600MW from current 800MW lends visibility for growth in FY16. Management highlighted that the increase in...

to a strong growth in sales. We note order book stood at 1.2GW as of March, 15 and expansionofcapacityfromcurrent800MWto1600MWlendsvisibilityforgrowthinFY16. Further, the government's focus on renewables and Inox Winds' strategy to target the...