Monday, April 23, 2012

Suzlon Group wins ~276 MW (`US$387 mn) in new orders across Europe
SEBI Needs to investigate thoroughly who are the entities involved in synchronized SELLING of the shares of Suzlon Energy Ltd in the Indian Stock Exchanges, in the last few days/weeks following a report by a brokerage house; whose content some of my highly placed sources denied tooth and nail, saying off the record, "Fictions". These top sources said to me, that a brokerage  house can have their own views and they do not want to comment on rumors and speculations about the Q4FY12 results. Anyone can take an independent view and this may or may not reflect the views of the company. So, it would be better to ignore such reports and speculations about Q4FY12 results, especially when the company is sure about meeting FCCB obligations and at the same time, the company is getting regular orders from across the world, especially from today's Europe. When specifically asked to a top source about the talks of massive fall of NET PROFIT in the Q4FY12 results, according to the brokerage house, the sources simply said, "Please don't go by what a brokerage house says, wait for some days, the last quarter results are coming soon. Everything would get cleared". This clearly shows that there may be some unholy links somewhere down the line between the preparation of a brokerage report and Shorters/Sellers of the shares of Suzlon  Ltd in the F&O market. How is that when the company has never approved of the same, the brokerage house comes with such kind of report? Moreover, it is surprising who provided the information for making such a report? Therefore, a thorough investigation is necessary to find out who are the real culprits involved in the Synchronized Selling of the shares of Suzlon Energy Ltd during the last few weeks, causing loss of money for the small investors, especially when the company is doing fine and is getting regular orders. SEBI (and the Stock Exchange Surveillance team) needs to closely look if they could find any unholy nexus between the operators and brokerage house, who prepared such kind of pre-result report, not approved by the company. These kinds of anomalies should be dealt strictly and punitive measures should be taken for safeguarding the interest of small investors. This will be very unfortunate if the company comes up with better results---many people might have lost money, due to such kind of synchronized selling during the last few weeks. When the company's present order book is around Rs.39, 000 Cr, how is that the share price is trading so low, except price manipulations by select entities? The way the regulators are treating the minority shareholders is appalling!! If a regulator is not able to protect the small investors then what for it is? Is it an elephant tusk? Also, the news is correct that the company is working on the proposal of putting offshore wind mills--this could come up within the next couple of years. Its equity capital is only Rs.355.47 Cr (considering its size) in which more than 50% is promoters' holding---so there are virtually very less number of stocks to be bought, if persons starts taking delivery of the shares. Moreover, its 9MFY12, revenues comes around Rs.4795.33, against an order book of around Rs.39, 000 Cr, which is to be executed within FY13-FY14 period. Therefore, the revenue growth in FY13-14 period looks robust--and this has been confirmed by my top sources, who refused to be identified.....Also, according to my close sources, the company could do well sequentially as far as Q4FY12 results are concerned, which would give a kick to the price of the share and take it around Rs.31-32 (CMP: Rs.22.60), in the short term. Therefore, use the dips to accumulate the shares of Suzlon Ltd, like secured Fixed Deposits.Ignore that brokerage report and I hope with the active participation of SEBI, this synchronized selling would stop from tomorrow---let us see how the regular acts!!
  • Cumulative order wins between 11 th February, 2012 and 15th April, 2012 (excluding orders announced separately)
  • Product mix includes the latest 3.4M104 and 3.2M114 turbines in addition to MM82 and MM92 models.
Suzlon Group subsidiary, REpower Systems SE today announced cumulative orders of approximately 276 MW across Europe over a two month period, excluding orders announced separately.
These cover various orders secured between 11th February, 2012 and 15th April,  2012 across Italy, France, Germany, Polant and the UK.
Andreas Nauen, CEO, REpower Systems SE
said: "These orders highlight our competitive positioning across highly competitive European wind markets. With our focus on technology and customers centricity, we have the right product and services to lead the growth in the sector."
Tulsi Tanti, Chairman--Suzlon Group said: "These orders clearly underscore the continuing momentum in the wind sector in developed European market. With our strong competitive positioning as  Group, we are poised to maintain our strong growth momentum across global markets."
The projects include several wind farms in Germany featuring REpower's latest 3.4M104 and 3.2M114 turbines models, with 3.4 and 3.2 MW of rated power respectively. Other orders will feature turbines of the MM92 and MM82 types. 

Disclaimer: I do not hold position in the shares of Suzlon Energy Ltd in my personal account, but my clients or/and family members might have some exposure in the scrip, as I  have recommended it.... I thought to give this clarification in this regard, because many of you have sent me mails, asking me, if I am having any position in the counter and what I am doing with the shares in my personal account at the present moment. 
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