Tuesday, June 21, 2011

Suzlon Buy on declines

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Suzlon

After reporting losses for several quarters, Suzlon finally managed to turn green in Q4 of 2010-11 and reported a consolidated net profit of Rs 431.59 crore.

Analysts are bullish about its future prospects because Suzlon was able to weather the competition from MNCs like Siemens , Gamesha and GE and able to increase order backlog by 107% to Rs 12,800 crore.

They also state that around 80% of Suzlon India's sales volume in 2010-11 was booked from orders that were won in 2010-11 itself and therefore, Suzlon should be able to maintain margins in 2011-12 as well.

However, they advise caution since the stock is quoting at around 60% premium to its global peers. Consider investing in this counter only when it corrects.

Source ET

Our Recommendation :
Buy on declines around 45 levels for a immediate target of 60 exit and buy once again. It is a traders delight and will give decent returns on a 3 months basis.

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