Why you should buy Suzlon Energy now?
The recent market decline has provided an attractive entry opportunity to the Suzlon Energy stock. An investment can be considered in the stock with a time horizon of 2-3 years. At the current market price, the stock trades at about 24 times its expected per-share earnings for FY09.
A strong order book, ongoing capacity expansion, and infusion of IPO funds into subsidiary Hansen Transmissions provide considerable visibility to the company’s earnings over the next few years.
Strong growth in volumes in the quarter ended December 2007 alleviates fears arising from a decline in profits. Suzlon Energy’s numbers threw a negative surprise this quarter; but this was attributable to one-off expenses such as relocation cost of projects and taxes incurred in certain hedging transactions.
Suzlon is now a fully vertically integrated energy equipment provider — a status that very few global players, such as Gamesa have managed to achieve. Apart from better management of costs, vertical integration is the key to handling supply disruptions — a major concern for many players in the wind energy equipment business.
Keep on reading the buy calls here with fundamental and technical analysis wherever applicable.
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sir i want to know all the market details like who are the main competitors , market segmentation , bcg matrix , and all the market related details hope i will get response as soon as possible thank you . shazer askari