Suzlon: The Wind is started Flowing…

Suzlon, Pune base Wind energy Turbine manufacture  and operate in 19 countries across the globe with around 22 years of presence in the renewable energy sector

Due to high debt and less demand in global market company lost its way after 2008 crisis but now it seems it is coming back to get it title back in Renewable energy sector.

In last couple of months there is many things happen in Suzlon.  Here we have mentioned few event which happened which made noise in Suzlon:

• On 17 January 2017 – Suzlon Energy achieved 10,000 megawatts installed wind energy milestone in India. Suzlon’s 10,000 MW of wind installation is capable of powering over 5 million households per annum.
• On day of Vibrant Gujarat Summit Mr Tulsi Tanti, MD of Suzlon Said that Suzlon Energy plans to add 1,500 megawatt of power capacity. Out of this 1,500 megawatt, 500 megawatt will be wind and solar, the hybrid solution in next 3 years. The current debt of the company is around 7,000-8,000 crore and the payment of debt is going, according to the schedule. Tanti added that company is in the final stages of discussion with the banks from exiting the corporate debt restructuring (CDR) and hoped to exit from CDR this financial.
• Company Secured 8 MW wind power project in AP.
• Company Secured 105 MW from Axis Energy Group.
• Company Secured maiden order  of 50 MW from Oil India.
• Suzlon bags 63-MW wind power order from THDCI.
• Rating Agency CARE assigned A rating to Suzlon. The rating has been assigned for its proposed long term and short term bank facilities. CARE ‘A’ ratings are considered to have adequate degree of safety regarding timely servicing of financial obligations, carrying low credit risk,”
• Outstanding Q3 results of 274 cr.

Suzlon is big beneficially of interest rate cut which help the company in lowing interest on its debt.  In last year company has delivered better result and significantly reduces it debt. Few thing that don’t work for company is that we find is that company has promoter holding is very low to around 20 percent only. But we have  to look out for this result as many thing get clear and future path of company will be decide.

Currently Suzlon is trading at 17.10 INR on 10^th Feb 17 on BSE with market cap of 8k Cr. With long term view one can enter in Suzlon.

Be Smart. Invest Smartly

A New Beginning :2016 Value pick 4

Sometime underrated stock outperforms and our fourth value picks is highly underrated.

Let’s start with our low price high value pick:

Suzlon Energy:

CMP: 21.65(8^th Jan).

From a position of strength, Suzlon has gone through multiple crises over the past five years including debt default. However, it has since taken corrective steps to substantially repair its balance sheet by selling off its German offshore wind arm, Senvion for 1 billion euros and issuing fresh equity worth Rs 1800 crore to Dilip Shanghvi & Associates—a promoter for Sun Pharma. Suzlon can now focus all its energies on new order wins and execution in the domestic market, and is well placed to win back 50 percent market share. Government’s ambitious wind energy target of 60GW by 2022 should help to drive demand for wind equipment

Moreover, Suzlon Group chairman Tulsi Tanti said on Thursday(7th Jan) that the group is looking to enter the solar energy sector in the current financial year . Its evolutionary S97"HT DFIG 2.1MW Wind Turbine with an All"Steel Hybrid Tower has achieved 35% PLF over the last 12 months. The evolutionary product has received encouraging response from customers across segments and reflects in the ~350 MW of orders received. Tulsi Tanti, Chairman, Suzlon Group, said, “The S97- HT DFIG 2.1MW with All Steel Hybrid Tower is a game changer and is the result of our continued focus on investing in next generation technologies. Suzlon endeavors to lower the cost of energy and provide clean and affordable energy for all.”

Suzlon demonstrates buoyant growth in Q2FY16; delivers 227MW with 18% normalised EBITDA margin.

• Sales volume is 64% up Y-o-Y.
• 18% EBITDA margin is highest in last 5 years.
• Order book continues to remain strong with INR 6812 crores.
• Gross debt reduces by 963 crores.

Above all clean energy is next big sector for next 5 years and Suzlon and Inox Wind are the two big players in this sector. For one year prospective Suzlon can move to 35-45 easily.We Suggest to buy this stock for 3 to 5 year horizon to see multi-fold return. 

 Be Smart. Invest Smartly

Hidden Gems of Indian Stocks market.

In my previous post I have focus on Big Bulls of Indian stocks market since many years. And now in this article I will mainly focus on small fish which have capability to become giant in near future.

Clean natural energy source must be big supplier of energy in future.

And in that Wind is one of that.

Suzlon is one of the biggest Indian companies in this sector.

We know demand of energy will increase in future so supply also must be increase and as we know energy

Resource  are limited so we must move to natural energy resource.

So it’s simple to understand that company working in that sector has bright future.

Now let’s see about Suzlon current market data;

Stock price on 3rd Jan 2014: 10.86 INR

Market Cap  (Rs Cr) : 2,624.92

Stock of Suzlon is available at very cheap price. Many people think that such cheap price stock has not good growth in future. For them please read my previous article where I have talk about Asain Paint.

Let’s know more about Suzlon:

The Suzlon Group is ranked as the world’s fifth largest* wind turbine supplier, in terms of cumulative installed capacity and market share, at the end of 2012. The company’s global spread extends across Asia, Australia, Europe, Africa and North and South America with over 22,500 MW of wind energy capacity installed, operations across over 30 countries and a workforce of over 10,000.

Find more about suzlon on http://www.suzlon.com/

At the end I want to say is that if not now then never.

 (*I have personal holding in Suzlon.)

If you like this article please comment your views on investment. You can mail me on jethi_keval@yahoo.com.
 

Be smart. Invest smartly