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Date: November 12, 2008
Ref. No. MPML/BB/191/055/2008

 

Dear Sir,

During the month of October Sensex lost 23.50% on the back of concerns over Global slowdown & FII's pulling out their money from the market. Sensex is currently trading at 9800 levels. Markets are in consolidation phase. This is the time for investors to accumulate stocks that have strong potential going ahead. In current market scenario power sector is one of the best sectors to invest in.

Suzlon Energy Ltd. :

CMP
60
52 Week High
460
52 Week low
42
Market Capital
8667 Cr
P/E
9.71
B/V
46.37


Suzlon Ltd started it operation in 1995 and was incorporated as a public company in 2005. Suzlon long with its subsidiaries engage in manufacturing & sale of wind turbine generators (WTGs) and components. Suzlon began with 3 MW capacity wind farm project at Gujarat in 1995 and at the end of 2007 it has capacity of 6000 MW from the wind farms all over the world.

Key Drivers for Suzlon Energy Ltd: -

1. Suzlon is currently standing with a Strong order book position with Rs16500 cr. of orders to be executed over the next two years.

2. There is Strong industry growth prospect to drive demand going forward.

3. Strategic acquisitions to help enter high growth markets & get control over supply chain.

4. Significant capital expenditure plans to drive top line growth going forward.

5. There is increasing level of backward integration which will help boost volume growth as well as margin expansion going forward.


At current level the stock is undervalued and holds strong potential for upside. Suzlons Energy Ltd's 52 Week high is Rs.460 and currently the stock is trading at Rs.60. that means Suzlon has lost almost 87% from jan 2008 to Oct 2008. There is a strong potential for upside in this stock. We suggest you to buy maximum Quantity of suzlon Energy Ltd on decline.


Awaiting for your Quick Response.

Thanks & Regards,
PMS Department