Suzlon Fundamentals?

Class

Active Member
#1
Does anyone have some uptodate fundamental information for suzlon? I have some from ICICI Direct but it seem to be out of date.

I'm looking at this as a very long term investment, so I'd like some idea of their current business model, how they are managing their debt which is big, and questions about management lacking transparency.

They are hovering at 90-100 after a dissapointing Q1 report, but have been as high as 250, although there's no guarantee they will achive that again. On the opposite end there's a big demand for renewable energy, and possibly in 10 years they will be up there with the big oil co's who knows.

So I'm particularly interested in their future estimates and long term outlook, and current issues and how they are addressing them.

Are there other similar companies in Indian stock market which deal with renewable energy sources?

Thanks in advance,
Class.
 
#2
Suzlon is a good long term investment as it is much below its all time high and significantly below its 52 week high, but you should wait to pick it up. The market may see some significant lows till October, and it is a high beta stock so it will correct much more than the index in percentage terms You can start picking up below 80, keeping some reserve for averaging when it may fall below that. I feel it can see 60-70 levels again this year.

On the business side, being a leading provider of alternative energy equipment, I see no downsides . Apart from the question of commercial viability of wind energy, which will increase as conventional sources deplete, there is this 'green energy' tag to it which will find backing from various govt. and non-govt. organistions by way of infrastructure spending.

The company has partly solved its short term liquidity issues and needs to seriously restructure some of its long term foreign currency liabilities. The stock is currently not doing well since a few weeks because it has not posted good results this quarter and also because before that it had seen a huge run-up from below 60 to above 120.

In two years or before that it is very likely to cross 250 per share, though it will see many ups and downs along the way since it is also a favoutrite 'satta' stock for speculators.


There are a number of sites where you can find financials and financial analysis on Suzlon. Just Google SUZLON ENERGY FUNDAMENTALS.

This is just an opinion, not a recommendation. Currently I don't own any Suzlon stocks.

Hope this helps.
 

Class

Active Member
#3
Hi Option newbie,
Thanks for a good review of Suzlon. Someone on CNBC said they thought it would see 70 in a pullback too, which we had good style today. Also good to know about it being a high beta stock.

Any idea if they have any future intention to diversify into other forms of renewable (green) energy?

What is 'satta' stock?

Have you heard about this NHPC IPO? For speculators or does it have long term potential?

All the best,
Class.
 

umeshpune

Active Member
#4
Cant Say much about the fundamentals or the future share price, but I have been a supplier for the past 5 years to this company, Never have they defaulted on my payments, never ever delayed payments, The people in the company are honest, and suzlon is no fly by night operator.

I would have blindly bought the shares, but Iam strict on valuation point, Presently I feel the share price grossly overvalued, Momentum or speculation can move the share upwards.
 
#5
Oh, 'satta stock' is just street lingo for a stock which people flock to gamble with upon frequent rumours of large movements happening.
Personally I feel the company has excellent prospects though there are people who are uneasy with its debt servicing obligations. They may do some restructuring or disinvestment which may be a temporary setback for the scrip but the long term story is solid.
 
#6
I would avoid the current IPOS as most of them are highly priced. After running into a mess with reliance power I have become suspicious of IPOS floated when the market
is at unreasonable highs.
 

Class

Active Member
#7
Thanks both,
Do either of you have a PE or EPS for this co.?

I've been searching for uptodate fundamental info. but only find news. News is that co. thinks sales will be flat for next 3 months due to economic slowdown and falling price of Wind Turbines. Some analysts think it will fall to between 60-70, others between 70-80.

All the best,
Thanks for the info.
 

magnet

Active Member
#8
I would avoid the current IPOS as most of them are highly priced. After running into a mess with reliance power I have become suspicious of IPOS floated when the market
is at unreasonable highs.
Agreed but it was priced much high........now its ard 170...so adani power at 100 start wont b bad right?
 
#9
Power is a good story and in certain ways Adani is ahead of relpower in terms of projects in hand but 100 for adani may or not turn out to be a good price for you if you are looking make a profit upon listing. That is very speculatory, given the current market situation. But at 16000 and above sensex levels, sure it looks good.
 
#10
Class,
PE/EPS for Suzlon are not quoted as it has not declared any dividends.
However, you can go by the price to book value which is quite reasonable at 2.01.
 

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