Limited downside seen in Suzlon Energy: SP Tulsian

Limited downside is seen in Suzlon Energy, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “Suzlon Energy, bankers have been keeping a very positive view. They have been very keen to reschedule the loan of the company and they are keen that company should merge the REpower which is the 100 percent subsidiary of the company and which is valued very richly at about USD 3 billion or thereabout.”
He further added, “If one sees the topline of about USD 5 billion for the company that also is quite assuring so taking the developments, taking the bankers view and even yesterday when the promoters sold about 2 percent stake in the company, that indicates that they are very serious to see the loan because the herculean task before the company is to get the loan rescheduled. Once they have a breather maybe of about couple of years or they have moratorium for interest payment and the installment payment they will definitely be able to take the call. So, keeping a positive stance downside is very limited but any positive indications maybe a move like merger of REpower with the Indian outfits or maybe once the re-schedulement by the banks happens in respect to the company we can see a good up move maybe of about 20-25 percent in a go only.”