Suzlon

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

 

price appreciation ---yes,big move---doubtful.in the short term.kindly explain your rationale for my knowledge,if you feel fit.

 

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

 

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:

 

Suzlon Energy is shooting up with 4% gain

 

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

 

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

 

@ 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.

 

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

 

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

 

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.