View Full Version : Inox Wind Ltd (NSE:INOXWIND) (BSE:539083)

07-30-2015, 02:00 PM
Inox Wind Limited is an India-based provider of wind power solutions. The Company manufactures wind turbine generators (WTGs) and provides turnkey solutions by supplying WTGs. The Company offers services, including wind resource assessment, site acquisition, infrastructure development, erection and commissioning, and also long term operations and maintenance of wind power projects. The Company manufactures nacelles and hubs at its Una Unit, located in the Una district of Himachal Pradesh, India. Its rotor blade manufacturing facility and tower manufacturing facility are located in its Rohika Unit, located in the Ahmedabad district of Gujarat, India. The Company's product WT 2000 DF, which is a type class III-B two megawatt WTG has components, including double-fed induction generator, drive system, rotor blade sets, towers and active pitch. The Company's wholly owned subsidiaries include Inox Wind Infrastructure Services Limited (IWISL) and Marut-Shakti India Limited (MSEIL).

Official Website: www.inoxwind.com

07-30-2015, 02:01 PM
Inox Wind (IWL) reported a strong set of numbers for 1QFY2016. Its top-line grew by 109% yoy to Rs634cr, led by supply of 120MW of wind turbine generators (WTGs) during the quarter as against 66MW of WTGs supplied during 1QFY2015. The revenue also came from commissioning of 78MW of WTG during the quarter as against nil in 1QFY2015. The EBITDA during the quarter came in at Rs86.4cr, an increase of 84% yoy; however, the same is lower than our estimate of Rs93.9cr, mainly due to foreign exchange loss. Hence, the EBITDA margin fell by 187bp yoy to 13.6% and the same is below our estimate of 14.5%. The net profit improved by 115.2% yoy to Rs50.5cr during the quarter. Strong order book to boost performance: IWL received new orders worth 162MW during the quarter, and as of June 2015 the order book stands at 1,220MW, up by 3.6% against 1,178MW during March 2015. The strong order book provides revenue visibility over the next 12-15 months. The company also has project sites worth in excess of 4,500MW, which have been acquired or are under various stages of acquisition. Thus, IWL has a healthy revenue visibility in the medium term. Moving up the value chain: IWL is moving towards bigger turbines on the same platform which would provide higher energy yield, lower energy cost and higher return to customers. IWLs new blade plant in Madhya Pradesh is the largest in Asia; the blade plant is ready to commence production. It will manufacturer blades of 100 meter as against 93 meters being currently manufactured. It will introduce larger 113 meter blades later during FY2016. We expect 50% of its business from this higher blade segment. The larger blades would get higher realizations and would improve the overall margin further. We expect IWLs margin to improve from 16.9% in FY2015 to 17.5% by FY2017. Outlook and Valuation: We forecast IWLs top-line to grow at a CAGR of 48.1% during FY2015-17 on the back of aggressive capacity expansion, strong order book, and large project sites. We expect EBITDA margin to improve to 17.5% by FY2017 on the basis of higher realization for larger rotor blades and no royalty payment burden from FY2016 onwards. The stock is currently trading at 13.1x its FY2017E EPS. Given the attractive valuation, we maintain our Buy rating on the stock. We have assigned a multiple of 16x to its FY2017 EPS of Rs31.6 to arrive at a target price of Rs505.

Source: http://www.angelbroking.com/