Buy Suzlon Energy; target of Rs 24: HDFC Securities

HDFC Securities is bullish on Suzlon Energy has recommended buy rating on the stock with a target price of Rs 24 in its research report dated February 13, 2017.

February 22, 2017 / 16:21 IST

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HDFC Securities' research report on Suzlon Energy

Suzlon Energy’s (SUEL’s) 3QFY17 result was a beat on all counts with volumes of 462MW (+80% YoY) and EBITDA margins of 22.5% (+490bps YoY) - leading to a higher-than-expected APAT of Rs 3.0bn. Improvement in EBITDA margins was led by operating leverage benefit and a favourable revenue mix (lower EPC).

Outlook

Additionally, SUEL is actively pursuing value unlocking in subsidiaries (SE Forge and Services business) for a sizeable reduction in debt. Consequently, we reiterate BUY on Suzlon with a TP of Rs 24/share (10x Dec-18E EV/EBITDA).

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first published: Feb 22, 2017 04:21 pm

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