SLIDESHOW

What went wrong with Suzlon Energy?

Mon, Jul 16, 2012 at 16:51

Source: Moneycontrol.com
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Citigroup last month downgraded the stock to "sell" from "neutral." Among various issues, it said that refinancing of FCCBs might prove a breather but doesn't solve its leverage issue. Further unfavourable regulatory environment in India (government has withdrawn generation based incentives, ended accelerated depreciation of 80% by restricting it to 15%) is also a big blow to Suzlon's India business, it pointed out. HSBC also has an "underweight" rating on Suzlon. Despite the USD 300 million bank refinancing, HSBC still sees Suzlon "having a tough time" with debt repayments. It has cut its target price on the stock to just Rs 10.