Suzlon Energy: Momentum Building Up
Suzlon Energy: Momentum Building Up
Suzlon Energy: Momentum Building Up
Suzlon Energy
BUY
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SUZLON ENERGY : RESULTS REVIEW 3QFY17
Conversion
Conversion
Repayment
3QFY17
FY15
FY16
Total Forex Debt* 959
9mFY17
9mFY17
FY16
Total Debt (Rs mn) 124,775
Debt (ex-FCCB) (Rs mn) 107,928
*Exchange Rate for conversion - 1 US$ = Rs 67.93 Source: Company, HDFC sec Inst Research
Source: Company, HDFC sec Inst Research
Value unlocking in subsidiaries
Maturity Profile: Rupee Term Debt Maturity Profile: Forex Term Debt
(SE Forge and Services
business) will also aid SUEL in Rupee Term Debt USD mn Forex Term Debt
Rs mn
reducing its debts 9,000 1,000 657
8,000 7,640
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research
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SUZLON ENERGY : RESULTS REVIEW 3QFY17
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
1QFY16
2QFY16
3QFY16
4QFY16
1QFY17
2QFY17
3QFY17
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research
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SUZLON ENERGY : RESULTS REVIEW 3QFY17
Peer Valuation
MCap CMP TP EPS (Rs/sh) P/E (x) EV/EBITDA (x) ROE (%)
Company Rating
(Rs bn) (Rs) (Rs) FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E FY17E FY18E FY19E
Larsen & Toubro ^ 1,397 1500 BUY 1,625 64.8 69.2 69.8 18.0 16.8 16.7 17.2 15.7 13.9 13.1 12.8 11.9
Cummins India * 242 874 BUY 1005 27.3 30.6 34.4 32.0 28.6 25.4 29.0 25.5 22.4 22.8 23.3 23.6
Voltas 112 340 BUY 351 12.4 14.5 16.6 27.3 23.4 20.5 20.0 16.5 13.8 16.2 16.8 17.1
Suzlon 108 18 BUY 24 0.9 1.2 1.5 20.7 15.1 12.0 10.2 9.1 8.3 NA NA NA
Engineers India * 102 152 BUY 178 5.9 6.2 8.0 25.9 24.4 19.0 21.1 18.7 13.1 14.4 14.5 18.0
Thermax 102 858 SELL 770 26.3 27.8 31.8 32.6 30.9 27.0 22.9 20.1 16.9 12.8 12.4 13.0
Carborundum Universal 49 260 BUY 340 8.9 11.5 13.6 29.1 22.5 19.1 13.9 12.0 10.3 13.4 15.4 15.9
Kalpataru Power * ^ 45 290 BUY 363 17.2 18.5 21.3 13.1 12.2 10.6 9.3 8.5 7.5 11.1 10.8 11.2
KEC International 44 169 BUY 179 10.2 11.1 12.7 16.6 15.3 13.3 8.7 8.1 7.3 16.1 15.2 15.3
Techno Electric ^ 43 374 NEU 388 18.2 21.1 23.9 16.9 14.6 12.9 12.9 11.8 10.3 19.5 19.7 19.3
Triveni Turbine 42 127 BUY 148 4.0 4.5 5.1 32.1 28.4 25.0 22.7 19.7 16.9 39.0 34.5 31.1
Crompton Greaves ^ 42 67 BUY 82 -1.2 1.6 1.6 NA 35.2 34.1 12.6 11.1 10.2 -1.7 2.2 2.3
Inox Wind 40 182 BUY 298 21.4 24.9 25.8 8.5 7.3 7.0 5.6 4.7 4.4 22.8 22.0 19.8
Sanghvi Movers * 10 238 BUY 325 21.8 25.7 27.6 10.9 9.3 8.6 4.5 4.2 3.6 12.0 12.7 12.2
*Note - represent SA numbers ^ P/E adjusted for value of Subs /JV's / non-core businesses
Source : Company, HDFC sec Inst Research
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SUZLON ENERGY : RESULTS REVIEW 3QFY17
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SUZLON ENERGY : RESULTS REVIEW 3QFY17
RECOMMENDATION HISTORY
Date CMP Reco Target
Suzlon TP
30 23-Feb-16 13 BUY 28
1-Jun-16 16 BUY 28
25
18-Jul-16 18 BUY 28
20 16-Nov-16 15 BUY 24
13-Feb-17 18 BUY 24
15
10 Rating Definitions
BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period
Apr-16
Feb-16
Sep-16
Feb-17
Jun-16
Jul-16
Mar-16
Dec-16
Oct-16
Aug-16
Nov-16
Jan-17
May-16
NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period
SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period
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SUZLON ENERGY : RESULTS REVIEW 3QFY17
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