Buy Suzlon Energy with target of Rs 56: Sanjay Vaid

Buy Suzlon Energy with a target of Rs 56, says Sanjay Vaid of SBI Capital Securities.

Vaid told CNBC-TV18, "Suzlon Energy has seen a very-very handsome rollover of almost 92% in the August series. Apart from this the stock is trading above Rs 51-52 range in which most of the moving averages are clustered and stock has trading off that level clearly shows that upmove and can give a decent upside from these levels."
He further added, "Fundamentally also there have been positive noises in the stock which we have been hearing off late. One is that the environment for green energy is improving given the prices of the conversion sources of energy and fuel are going up and second the recent disaster in the nuclear energy, which we saw in Japan, given these I think there is some re-focus into the green energy segment."
"The stake sale in Hansen will obviously release a lot of cash for the company, which will help the company to reduce the debt burden and going forward would be positive for the company. The integration of REpower into the company will improve the business model of the company. Given all these factors, which are positive, we feel that Suzlon can easily trade up and go towards the target of Rs 56 therefore we are recommending a buy in Suzlon with a target of Rs 56."