Suzlon energy, whats ur view?

Suzlon energy is already cutting on its debt buy selling its non core assets, dillip sanghvi stake buying is cleared before 3 years when sanghvi bought the shares of natco pharma very little people knew about it and its busniess model see the kind of returns generated by natco pharma and its going strong . suzlon can turn profitable in this quarter or the next quarter. VK sharma of HDFC mutual fund also has holding in suzlon. In near term market volatility can affect this share but in a longer term it can be a multi bagger buy with only a minium of 5 years view buying with small quantity and increase as your conviction increases and also remember the thrust of goverment on renewal energy see the valuation of inox wind which doesnt have its own technology for pwer generation so let your thinking get hold of your conviction.

 

can you please explain a bit more on how do you think they will turn profitable next quarter...because as i see the returns it seems like they are in an operating loss so even if they reduce the debt to zero they will still be in a loss...and even if the sales increase their operating costs will still keep them in a loss position....

is there a report from any brokerage that shows that they will reduce their operating costs.

 

Brokerage house Nomura has rated wind turbine firm Suzlon Energy as a ‘buy’, terming it a potential turnaround story in the emerging wind power sector in India. The brokerage has a price target of Rs 38 per share for the stock. "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 ," says the Nomura note. The brokerage feels 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. "Re-introduction of wind power incentives and supportive policy aimed at meeting the government’s ambitious wind energy target of 60GW by 2022 should help to drive demand for wind equipment, in our view. Strong operating/financial leverage from under-utilised manufacturing facilities and debt reduction is likely to drive normalisation of margins and strong earnings growth for Suzlon in the years ahead, as per our estimates," the Nomura note says.