Positive on INOX Wind; risk-reward turns favourable: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar, CIO and Head Research, Precision Investment Services, talks about INOX Wind's second quarter numbers.

ET Now: INOX Wind, numbers were largely in line with expectations. But the fact remains that while a lot of companies are finding some issues with this earnings season, the management of INOX Wind has came out and said it is happy with the quarterly numbers.
Avinnash Gorakssakar: With the topline seeing an over 80 per cent surge and bottom line climbing around 60 per cent, the visibility part of the business is extremely strong. The company is sitting on a 1300-megawatt order book.

With the kind of upside which we see for the renewable business, especially the wind business, my sense is that you could see a strong earnings compounded growth rate of 20-25 per cent in FY16 and FY17. To that extent the size of the profit as well as the business opportunities are making - and I feel that even in the coming budget there could be some big incentives announced for the renewable energy - to that extent the stock definitely offers a favourable risk reward as far as near and medium term horizons are concerned.