Poker
06-08-2010, 02:26 PM
Suzlon ( broker indiainfoline) – BUY Target Rs73
Suzlon will reach Rs73 in year as it has now bottomed out and upgraded to buy
* WTG sales pick up, but continue to remain muted, 38% lower over the previous year as customers defer deliveries
* Gross profit/MW improves to Rs24.6mn/MW during Q4 FY10 from Rs20.3mn/MW in Q3 FY10, expected to stabilize here
* High depreciation and tax outgo coupled with lower other income translate into adjusted loss of Rs2bn
* Order book and order inflow remain weak during the quarter, concerns on weak order book position continue
* Reduce earnings to reflect weaker than expected FY11; but steep correction leaves room for upside despite cut in target price to Rs73/share, re-iterate BUY
Suzlon will reach Rs73 in year as it has now bottomed out and upgraded to buy
* WTG sales pick up, but continue to remain muted, 38% lower over the previous year as customers defer deliveries
* Gross profit/MW improves to Rs24.6mn/MW during Q4 FY10 from Rs20.3mn/MW in Q3 FY10, expected to stabilize here
* High depreciation and tax outgo coupled with lower other income translate into adjusted loss of Rs2bn
* Order book and order inflow remain weak during the quarter, concerns on weak order book position continue
* Reduce earnings to reflect weaker than expected FY11; but steep correction leaves room for upside despite cut in target price to Rs73/share, re-iterate BUY