Suzlon Energy may test Rs 32, says Parag Thakkar

Parag Thakkar of HDFC Securities told CNBC-TV18, "We like the renewable energy space, it is a macro call. This government is going to focus aggressively on wind and solar energy and Suzlon Energy of course is the largest wind player. Now they are back to 30 percent market share. Most importantly, Suzlon has its annuity business of around Rs 1500-1600 crore revenue where margins are higher. So, that business will continue to grow at 5 percent in terms of pricing and the installed base is growing. For example, last year they installed 450 megawatts, this year they are expected to do around 1050-1100 megawatts and next year it will be 1600 megawatts. So, as the install base grows the annuity income will further grow. Now they have reduced the debt by half by selling Senvion. So, the interest cost will come down and it has already started falling.""The three benefits which have come recently from government side is that excise duty is waived off and inter-state transmission charges are likely to be waived off. The overall wind potential in India has been upgraded from 1 lakh megawatt to 3 lakh megawatt. My price target is around Rs 32," he said.