Hold Suzlon Energy, says Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "If you look at how Suzlon Energy's performance has been specifically after the debt reduction and sale of Senvion, you are looking at interest cost going down substantially. So if you track the performance of the first half of FY16 vis-à-vis what it did in the corresponding period last year. The interest cost has nearly halved, out of Rs 510 crore in terms of interest cost compared to Rs 910 crore.""If you look at the benefits that will be coming in through the accelerated depreciating programme and generation incentives that get the company, we are probably looking at decent amount of topline growth and that has been substantiated by the order book close to 1,228 mw at the end of Q2. If you are looking at 431 mw which were produced by the company in the second quarter, you are looking at decent amount of realisations go through for the remainder part of the year and in the coming few years as well.""If you are looking at offtakes improving, you are looking at EBITDA margin improvement happening because in the first half it was around 16.2-16.3 percent compared to just about a 1.5 percent in the corresponding period. So with the reduction in interest cost, operating leverage benefits kicking in, volumes increasing, order book increasing, the prospects of the company are looking very bright. The only doubt would be the FCCB conversion over the next few quarters and the next few years, which might be little bit of equity dilutive but with three year view it is definitely hold," he added."The low priced stocks does not mean that there is great value in it. You should analyse the company's fundamentals, how the management track record has been, whether the company is in the right spear at the right point of time and whether the financials probably matching. So just because the stock is Rs 8-10, just as a hypothetical example, does not mean has been cheap.""You need to analyse the company's financials and the dynamics very closely and even if it is a four digit stock, if the premium value is justified for the stock, if the growth prospect is there, investors can buy but the retail mentality is that you can accumulate a lot more for Rs 8 stock than you can do for Rs 300-400 stock but the performance ultimately counts in the long run. So you should be very careful when you are looking at these lowly priced stocks," he said.