Suzlon Energy a good long term bet, says SP Tulsian

Tulsian told CNBC-TV18, “Suzlon Energy, we have the repayment of that liabilities falling due tomorrow of about 350 million of FCCB, but again there is a news that extension of 45 days has already been agreed upon because company does sought and extension of about couple of months back and that kind of extension was expected from the FCCB holders and now the talk is that they are looking to raise about 300 million plus of the fresh FCCB to repay this liability of 350 million plus FCCB.”

He further added, “In case of Suzlon I think I have a different view because if you go by the REpower, which now they are controlling to the extent of 100%. The kind of valuation that REpower alone is enjoying to the extent of USD 2.5-3 billion of the entire this one- that gives a lot of comfort to the new creditors in lending the money to the company. So the picture maybe different because again Suzlon is a USD 4 billion top line company, they need to improve their margins and if that once starts happening then probably the situation can quickly change on that front. I agree that the stock has corrected from Rs 30 plus to about Rs 20 as of now in the last couple of months. We have seen that swift rise from Rs 20 to Rs 30 as well in the preceding two months. So maybe I will be too comfortable in taking a long-term investment call on the stock than on HCC.”