Antique stock broking bullish on Suzlon Energy

Last week, there was a brief flurry in Suzlon Energy , the world's third largest wind turbine supplier, and as it appeared that they were squeezing out the remaining shareholding in RE Power that raised hopes that Suzlon would now have access to the RE Power balance sheet and the cash. So the stock had moved up a little bit. Abhineet Anand from Antique stock broking, who tracks Suzlon closely, told CNBC-TV18 that the stock move is materially positive for Suzlon.

Don't miss: Suzlon agrees to sell 26% stake in Belgium arm Below is a verbatim transcript of his interview with CNBC-TV18's Udayan Mukherjee. Also watch the accompanying video. Q: What do you make of this Suzlon move and should it be construed as materially positive? A: I think it is positive for Suzlon, because if you look into the RE asset, that is one of the best win power assets in the world as of now. If you look into the orderbook to the trailing sales, they have an order book of closer to 2.5 to 3 years which is the highest in the industry. Across the world, companies like Vestas, Gamessa, Suzlon and other players do not have order book more than a year, precisely they have less than a year may be. But because of RE asset and if you look at the last 3-4 years history, its EBIT margins have been improving from 3% odd presently at 6.5% odd. So, RE is a very important asset for Suzlon and the squeeze out process important from the perspective that RE is a balance sheet if you look liquid cash out of order of Euro 320 million. There is a debt on books of minimal rates of the order of USD 50 million. So, I think that