Inox Wind - A Disappointing Execution, However, Sharp Rise In Order Book: ICICI Securities

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ICICI Securities Report

Inox Wind Ltd. received an order inflow of 2.3 giga watt in FY24. As a result, it’s order book improved to 2.7 GW or ~nine times book to bill ratio. The execution for Q4 FY24 and FY24 was tad disappointing at 129 mega watt and 372W (versus our estimate of 450 mw) in FY24, ~four times YoY.

Revenue came in at Rs 5.2 billion and Ebitda of Rs 1 billion (versus loss YoY). As a result, adjusted profit after tax stood at Rs 500 million in Q4.

Note that Inox Wind has reduced the external debt by 75% in the fiscal. We estimate execution growth at 750 mw and 1,100 mw for FY25E and FY26E, respectively based on strong order inflow and industry prospects.

We maintain Buy rating on the stock with a revised target price of Rs 720/share, valuing the stock at 30 times FY26E.

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ICICI Securities Inox Wind Company Update.pdf

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