Suzlon

Discussion in 'Stock Picks Of Wizards' started by vineet, Apr 24, 2017.

  1. vineet

    vineet Active Member

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    I guess suzlon is ready for big move this week. Comments invited
     
  2. shakti khanduri

    shakti khanduri Active Member

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    price appreciation ---yes,big move---doubtful.in the short term.kindly explain your rationale for my knowledge,if you feel fit.
     
    Last edited: Apr 24, 2017
  3. vineet

    vineet Active Member

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    Dnt understand ur meaning of price appreciation and big move. For me both same I'm expecting 23 target
     
  4. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Suzlon is having 115% gain as per Ventura

    Suzlon Energy Ltd
    BUY

    While the strong business environment for renewable energy augurs well
    for Suzlon, its debt woes keep the performance of the company from
    flowering. However, we believe that this is all set to change given the
    proposed monetization of its subsidiaries to repay debt partially. Suzlon is
    looking to pare its debt by selling a stake in its two wholly owned
    subsidiaries SE Forge Ltd and Suzlon Global Services Ltd. We estimate
    that a 40% stake dilution (Rs 3350 crore) along with FCCB’s conversions
    (Rs ~1650 cr) and generation of free cash flows would aid in lowering
    debt to Rs 4392 cr Rs 12511 cr in Q3FY17.
    This level of stake sale of 40% would essentially have no significant
    bearing on PAT and a reduction in interest out go would more or less
    compensate for minority interest write down.
    We estimate that revenues would grow at a CAGR of 14.4% to Rs
    16392.4 crore by FY20. While EBIDTA is expected to grow at a CAGR of
    24.3% to Rs 2,312.3 crore over the same period. Net earnings (post
    restructuring) are expected to grow at a CAGR of 27.4% to Rs 1272 crore
    in FY20.
    EBIDTA and PAT margins are expected to drop marginally as the reverse
    auction process would force the bidders to drop/lower IRR’s. This in turn
    would be partially passed on to the vendors (like Suzlon)
    We initiate with a BUY rating for a target price of Rs 42.8 (
    12xFY20EV/EBIDTA). This represents an upside of 115% over the next
    30 months.
    We are optimistic on the company prospects given that:
     

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  5. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Suzlon Energy is shooting up with 4% gain :)
     
  6. shakti khanduri

    shakti khanduri Active Member

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    @Mr Vineet,I know you are quite good at reading charts.Congratulations. Kindly give your opinion on Indian Terrain
     
  7. vineet

    vineet Active Member

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    If ur purchased this in March or early January thn it's hold. It's making new high but the risk also increases if mrkt corrects everything come down accordingly. Stop-loss of 198 n continue to hold
     
  8. shakti khanduri

    shakti khanduri Active Member

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    @ Mr Vineet . By temperament, I am a long term investor and had baught it at around 100 about one year back and intend to hold it for long term (10 years), as I see significant potential in future for multibagger returns.It is on all time high,and is operating in consumer discretionary sector.Thanks for your opinion.
     
    Last edited: Apr 28, 2017
    kharb likes this.
  9. starry_eyes

    starry_eyes Member

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    I think it may be kissing three digits in 3-5yrs
     
  10. krish123

    krish123 Member

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    nothing bad with working of company only problem is huge debt,
     
  11. starry_eyes

    starry_eyes Member

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    So long as a company is in a sector which is profitable and growing in the foreseeable future, the debt would keep getting serviced and repaid as scheduled.
     
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