Bullish on renewable energy, Suzlon may test Rs 30: Thakkar

Parag Thakkar of HDFC Securities told CNBC-TV18, "In Suzlon Energy, we have a good target price of around about Rs 30. We are also committed to the climate change thing and we have to reduce our carbon emission norms by 35 percent. So, by 2030 we should be installing 3 lakh megawatt renewable energy thing. So, wind will also definitely play an important role." "Suzlon have done 9,000 megawatt installations till today which gives them around Rs 1,500-1,600 crore kind of annuity revenue which is in the form of operations & maintenance (O&M) fees. This will continuously expand as they install more and more. Now there is a great uptick in terms of demand from PSUs and PSUs are good pay masters also. So I think this entire renewable energy space is going to get traction with every passing day and Suzlon is best placed to ride on it," he said. "Last year they had total borrowings of around Rs 15,000 crore of which they were paying interest. Now, it is Rs 7,000 crore. So, on one hand your interest cost is declining and on one hand O&M fees are increasing. So, it is a great play and we remain very bullish overall on renewable energy space."