SP Tulsian`s view on JP Associates, Suzlon Energy

SP Tulsian, sptulsian.com shares his view on JP Associates and Suzlon Energy.

Tulsian told CNBC-TV18, “JP Associates, today only I heard the news that probably they are looking for prepayment of the 550 million FCCB liability also and that is very strange because if you see their business model, I don’t think that they have any problem in their engineering and construction business, they have any problem in cement business, their subsidiary JP Infratech has posted good numbers even the JP Power, which is again their subsidiary has posted good numbers.”
He further added, “Honestly, I don’t think that any fundamental reason justified this kind of fall because we have been seeing in fact the volatility in the stock for last four-six months- it swiftly moves to about Rs 75-78 then again swiftly falls to about Rs 60 levels or so. So probably this time it looks like it is at its bottom and it has bottomed out and probably the second round of upsurge may come after company posting the results or this FCCB liability prepayment of 550 million can put in some life back into the stock.”
“I don’t think that anything exciting will come on the Suzlon results definitely because the next crucial event for the Suzlon is on June 12 when their 300 million FCCB liability is falling due, which though they have hinted that they will be asking for a small extension so that will be the key trigger. For next year I don’t know what will be the real tone because recently they have reconstituted the board of RE Power also and that is a prime asset in the portfolio of the company now with 100% stake held. So I am in fact positive on the FY13 working but nothing is expected from Q4 results but yes, as I said that next trigger is of the FCCB liability repayment in the end of June next month.”