Target: ₹185

CMP: ₹143.80

We initiate coverage of Inox Wind Ltd (IWL) with a Buy recommendation and a target price of ₹185. Inox Wind is a fully integrated wind energy solutions provider. The company is engaged in the business of manufacturing and selling wind turbine generators (WTGs). It also provides erection, procurement and commissioning (EPC), operations and maintenance (O&M) and common infrastructure facilities services for WTGs and wind farm development services.

The series of promoter’s fund infusions (cumulative of ₹2,940 crore over FY23-25) through stake sales has resulted in zero interest-bearing debt for Inox Wind. The company is well- positioned to capture the market share of the growing wind sector in India, thanks to its strengthened balance sheet, robust order book of 2.7 GW across a well-diversified customer base and a leaner O&M arm (Inox Green Energy Services Ltd. with robust margins of over 45 per cent). We expect the company to return to profitability from FY25 onwards, driven by higher execution, which will be supported by its robust order book.

India plans to add around 75 GW of wind power capacity by FY32 over the current base of 46 GW. With the transition from 2 MW to 3-3.3 MW and the development of the 4.X MW WTG platform, it is also technologically ready for the next decade.