Thursday, November 06, 2014

Suzlon Energy Ltd hits the buyer freeze on the late trade at Rs.14.07 on the BSE. With so much buzz on wind energy around and the NDA introducing sops for the sector, the scrip will soon see the levels of Rs.29-30, in the coming days. Meanwhile, there were media reports the wind turbine maker Suzlon Energy expects to receive additional orders worth about Rs.3,250 crore this fiscal on the back of government re-instating the accelerated depreciation scheme.  Moreover, on Oct 31, 2014, Bloomberg, reported: 
Suzlon Energy Ltd. (SUEL), Asia’s biggest wind-turbine maker, said its business is recovering sufficiently to meet loan repayments that began this month after a two-year debt holiday ended. The Pune, India-based company’s net loss narrowed to 6.56 billion rupees ($107 million) in the three months through September from 7.82 billion rupees the previous year, according to an e-mailed statement today. Operations are improving and revenues are expected to increase in the second half, said Kirti Vagadia, group head of finance. 
Suzlon, which suffered India’s biggest convertible-bond default in 2012, is seeking to emerge from a debt reorganization program by the end of the fiscal year. As part of a $1.8 billion restructuring, domestic lenders had agreed to a two-year moratorium on loan repayments that has now ended, Vagadia said. Interest dues, which were being converted into equity, will now have to be paid in monthly cash payments of about 500 million rupees, Vagadia said. Principal repayments will be spread over 10 years and start off small, he said.

India last month officially reinstated a wind-farm tax benefit that was first announced in July. The effect of that policy change will start to become visible in orders later this year, Vagadia said. The company has already received about 150 megawatts of new orders linked to the restored incentive, according to an investor presentation today.Suzlon reported a 12 percent increase in revenue to 53.8 billion rupees. Finance costs rose 8 percent to 5.23 billion rupees. 
Suzlon Energy will invest close to Rs.15,000 crore in the next five years to set up power projects of 2,000 MW capacity in Madhya Pradesh. The company will also set up a manufacturing base in the state. 
My recommended J P Power Ltd (Rs.14.72) at around Rs.12-12.30 a few weeks back, touched Rs.15.85, in the early morning trade. Even J P Associates Ltd, which was recommended around Rs.29-30, yesterday touched Rs.34.35, before closing at Rs.32.85. Now while J P Power Ltd is expected to consolidate around the current ranges, the next round of move is likely to come from J P Associates Ltd. 
With the inflation trajectory trending down and chances of interest rates CUT by the RBI increasing, banking and auto sectors will do well and there will be buying interest from foreign investors who have been selectively buying these stocks. It is basically due to this reason, that the FIIs holding in Jaiprakaash Associates Ltd (J P Associates Ltd) inspite of so much negative news from these so called TV-analysts, have changed very little (only 2.22% down). The scrip should cross Rs.40, by the end of the next week. Remember, when most of the TV analysts asks all to exit a counter, it is time to enter; because of the obvious reasons. These people have been parroting the same stereotyped wordings, since the scrip was below Rs.29. Meanwhile, J P Associates Ltd gave more than 15% appreciation and J P Power more than 30%, to those traders/investors who did not hear them....Most of these so called analysts, suffer from a disease of "Dalal Street", called "Herd Mentality"---they cannot think beyond a certain point; problem lies here.
My recommended Western India Shipyard Ltd yesterday, touched Rs.2.48, before closing at Rs.2.45. With the fundamentals of the company improving, we could, soon see the levels of Rs.5, in the coming days. The scrip was repeatedly asked to be accumulated in this blog. 
Hilton Metal Forging Ltd yesterday closed in the green at Rs.19.70, after making an intra-day high of Rs.20.15.  This is one of the cheapest stocks in the sector in which it performs. A decent P/E re-rating can take the scrip to around Rs.31-32, in the coming months. 
Celebrity Boutique Hotel Begumpet
Prajay Engineers Syndicate Ltd yesterday made a high of Rs.10.85, before closing at Rs.10.29. The company has huge land bank of around 738 acres, most of which were acquired by the company at low prices long back, but its market cap is only Rs.73 Crores. Also, I think many do not know that Prajay Engineers Syndicate Ltd is also into hospitality sector. Celebrity Hospitality Services (the hospitality division of Prajay Engineers Syndicate Ltd), has been providing unparalleled service in the hospitality industry for the past 8 years. Its team of dedicated employees, guided by the Board of Directors of Prajay, has been striving hard to provide the clients, comfort and satisfaction. Doesn't it look absurd? Therefore, should the price of the share go up?
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