Buy INOX Wind with 1-year target of Rs 505: Mayuresh Joshi, Angel Broking

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, shares his preferred non-Nifty pick, which can generate healthy return over the next one year.

ET Now: Give me a non-Nifty idea where you think 15-20 per cent return is conceivable in the next one year?
Mayuresh Joshi: Among midcap stocks, INOX Wind is something that we continue to prefer. The stock has of late seen a sharp fall. The order book is quite decent; the recent acquisitions are quite strong.

The company has been running a decent capex over the past few quarters and that capex is going to aid the company substantially, going forward.
Looking at the chunk of order flows that has been flowing for the company, we believe that the government reforms toward renewable energy are going to be a huge impetus for INOX Wind.
Our own estimates in terms of top line growth are anywhere between 48-49 per cent in absolute numbers. We are looking at Ebitda margin expansion close to 18 per cent.

Valuations are looking extremely attractive at this point of time. A decent order book, expanding margins and a timely capex to cater to the increasing demands, hold INOX Wind in good stead. So we are extremely bullish on stock.

We have a target of Rs 505 for the stock with a time horizon of 12 months.