Suzlon energy is a pioneer and leader in the business of renewable energy solutions. They have 3 main divisions, Wind, Solar and Forging. Suzlon has presence in around 19 countries across 6 continents. Key markets for the company are India, Brazil, China and North America.
For more info check, http://www.suzlon.com/
NUMBERS - THE LATEST
Market cap: 8640 crores CMP on Day11 Feb2017: Rs 17
Revenue FY16: 9562 crores Net profit FY16: 483 cr FV: 2
POSITIVES
1. For Suzlon energy the year 2015 - 2016 was a year of turnaround. The company could manage a net profit of 483 crores. This was done on the back of 1130 MW worth of sales volume, a 149% increase over the previous year.
2. The company has two back-2-back successful quarters with good margins, further manifesting the turnaround. For 2 consecutive quarters, gross margins are in the range of 44 - 46%
3. Consolidated net debt was brought down from 14,570 crores to 8,452 crores.
4. Modi government has an ambitious target of 5000 MW per year for wind energy. Suzlon with its 14 manufacturing facilities in India and a presence in all 9 windy states is well placed to make the most of this opportunity.
5. Credit rating by CARE upgraded from BBB- to BBB for domestic operations, and a provisional rating of A- for international operations.
THE TURNAROUND
1. In Q3FY2017 Suzlon grew its revenue 76% y-o-y to 3,307 crores. Net profit grew by 350% y-o-y at 304 crores.
2. New order intake for this quarter was 557 MW with total order book at 1,231 MW
3. Consolidated net debt stood at 6,538 crores. excluding FCCB.
4. Company achieved a milestone of 10,000 MW in India. The entire wind asset is under the Suzlon fold for servicing and maintenance.
5. Two new rotor blade factories was commissioned in Andhra Pradesh and Rajasthan.
INTERESTING INFO
1. In the year 2015 Dilip Shanghvi, India's 2nd richest man, and promoter of Sun Pharma, picked up 23% stake in Suzlon for an investment of 1800 crores.
2. Suzlon energy strengthened its top management with two important senior hires, JP Chalasani as CEO and Rakesh Sarin as CEO of international operations.
3. Already a leader in the wind energy space, Suzlon entered into the solar space. As solar energy compliments wind energy, the company is now well positioned as a multi-dimensional solutions provider. Suzlon can now offer wind-solar hybrid solutions.
4. Company crosses 2 GW milestone installation in Maharashtra and Tamil Nadu.
5. Suzlon aims to be the company of choice for renewable energy by 2020.
NEGATIVES - POSSIBLE RISKS
1. There are still some loose ends in terms of the turnaround, like resolution of FCCB bonds, restructuring of debt and gaining market confidence .
2. If wind stops blowing or sun stops shining, in India and other countries of the world, that could be a major risk for Suzlon :-)
MY TAKE
Suzlon energy is a humongous turnaround story. Few years back when I took a look at this company, it looked like a gone-case. Most market observers had written off this company. From that situation to today, it is a phenomenal story. Full credit to Tulsi Tanti and Team Suzlon.
Fossil fuel and conventional energy has ruined the planet over the last 100 years. It is high time the world moves towards renewable energy. The indications are clear, and the direction is set. This area is all set to grow over the next 10 - 20 years. Suzlon is in the right place at the right time.
If my memory serves me right, Charlie Munger once said that turn-arounds rarely turn around. Looking at the indian stock market we can find atleast 100 companies that look like they are turning around. But that is not the case. Though rare, turn arounds do happen.
Turn-around companies offer a unique opportunity to make a fortune. We can make massive profit, provided we have selected the right company, and timed our entry into the stock. Currently Suzlon is in such a zone.
Suzlon energy is a massive potential multibagger!!
Disclosure: I own shares in Suzlon.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.
For more info check, http://www.suzlon.com/
NUMBERS - THE LATEST
Market cap: 8640 crores CMP on Day11 Feb2017: Rs 17
Revenue FY16: 9562 crores Net profit FY16: 483 cr FV: 2
POSITIVES
1. For Suzlon energy the year 2015 - 2016 was a year of turnaround. The company could manage a net profit of 483 crores. This was done on the back of 1130 MW worth of sales volume, a 149% increase over the previous year.
2. The company has two back-2-back successful quarters with good margins, further manifesting the turnaround. For 2 consecutive quarters, gross margins are in the range of 44 - 46%
3. Consolidated net debt was brought down from 14,570 crores to 8,452 crores.
4. Modi government has an ambitious target of 5000 MW per year for wind energy. Suzlon with its 14 manufacturing facilities in India and a presence in all 9 windy states is well placed to make the most of this opportunity.
5. Credit rating by CARE upgraded from BBB- to BBB for domestic operations, and a provisional rating of A- for international operations.
THE TURNAROUND
1. In Q3FY2017 Suzlon grew its revenue 76% y-o-y to 3,307 crores. Net profit grew by 350% y-o-y at 304 crores.
2. New order intake for this quarter was 557 MW with total order book at 1,231 MW
3. Consolidated net debt stood at 6,538 crores. excluding FCCB.
4. Company achieved a milestone of 10,000 MW in India. The entire wind asset is under the Suzlon fold for servicing and maintenance.
5. Two new rotor blade factories was commissioned in Andhra Pradesh and Rajasthan.
INTERESTING INFO
1. In the year 2015 Dilip Shanghvi, India's 2nd richest man, and promoter of Sun Pharma, picked up 23% stake in Suzlon for an investment of 1800 crores.
2. Suzlon energy strengthened its top management with two important senior hires, JP Chalasani as CEO and Rakesh Sarin as CEO of international operations.
3. Already a leader in the wind energy space, Suzlon entered into the solar space. As solar energy compliments wind energy, the company is now well positioned as a multi-dimensional solutions provider. Suzlon can now offer wind-solar hybrid solutions.
4. Company crosses 2 GW milestone installation in Maharashtra and Tamil Nadu.
5. Suzlon aims to be the company of choice for renewable energy by 2020.
NEGATIVES - POSSIBLE RISKS
1. There are still some loose ends in terms of the turnaround, like resolution of FCCB bonds, restructuring of debt and gaining market confidence .
2. If wind stops blowing or sun stops shining, in India and other countries of the world, that could be a major risk for Suzlon :-)
MY TAKE
Suzlon energy is a humongous turnaround story. Few years back when I took a look at this company, it looked like a gone-case. Most market observers had written off this company. From that situation to today, it is a phenomenal story. Full credit to Tulsi Tanti and Team Suzlon.
Fossil fuel and conventional energy has ruined the planet over the last 100 years. It is high time the world moves towards renewable energy. The indications are clear, and the direction is set. This area is all set to grow over the next 10 - 20 years. Suzlon is in the right place at the right time.
If my memory serves me right, Charlie Munger once said that turn-arounds rarely turn around. Looking at the indian stock market we can find atleast 100 companies that look like they are turning around. But that is not the case. Though rare, turn arounds do happen.
Turn-around companies offer a unique opportunity to make a fortune. We can make massive profit, provided we have selected the right company, and timed our entry into the stock. Currently Suzlon is in such a zone.
Suzlon energy is a massive potential multibagger!!
Disclosure: I own shares in Suzlon.
For commercial collaboration, consultation and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 100 - 500% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatality is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW.
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own assessment and make your own decisions.
