Book profits in Suzlon Energy: Phani Sekhar

136315 Investors following Suzlon Energy. Share this News with them.

0

Like this story, share it with millions of investors on M3

Book profits in Suzlon Energy: Phani Sekhar

Book profits in Suzlon Energy, says Phani Sekhar, Fund Manager, Angel Broking.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See previous views by Phani Sekhar See what other Experts & Brokerages are saying about Suzlon Energy See messages about Suzlon Energy Suzlon Energy BSE | NSE 10/02/12 Are Mutual Funds betting on Suzlon Energy?

Book profits in Suzlon Energy , says Phani Sekhar , Fund Manager, Angel Broking.

Sekhar told CNBC-TV18, "It is a start of improvement to come but this is not very meaningful because the proceeds from the stake sale only amount to 14% of the net debt that Suzlon has. So it is not very meaningful but at the same time the real turnaround in Suzlon will happen with visibility in the topline and that has clearly not happened and we need to see that first from the US. FY12 is expected to be the turnover year for Suzlon but the valuations more than discount the positive developments for Suzlon. It is already trading at 8.3% EV to EBITDA on FY11 basis and these valuations are very rich for a company that is not going to show any earnings momentum plus the cash flows are already under strain, there is a lot of debt restructuring that need to happen going further. So I would clearly advice the investors to book profits."