Exit Suzlon Energy, says Rajesh Agarwal

Exit Suzlon Energy, says Rajesh Agarwal, Eastern Financiers.

Agarwal told CNBC-TV18, "I would suggest to get out of Suzlon Energy on the first opportunity. I guess any spike should be taken as an opportunity to get out of the stock because the operations have been pretty bad and there are no hopes of the operations being revived in the near future. Even if the operations get revived the kind of interest cost this company has, it paid around Rs 5 crore in the first quarter, I don’t think that that’s going to help the company in getting out of its problems."

He further added, “The company is into severe cash crunch. They are again seeking an extension of their FCCB repayments and I think this kind of situation is going to continue for sometime with this company. I won’t be surprised if this goes down to single digit level. So it would be advisable to get out of this stock as soon as an opportunity arises. Any spike should be taken as an opportunity to get out of the stock."