Thursday, April 5, 2012

Stock Analysis # 1 : Suzlon energy

For the past few months we have been tracking a large number of stocks on the BSE as well as the NSE and have come to conclude that a majority of these stocks are trading at levels that are phenomenally below their actual values and if invested in periodically or at the earliest opportunity would give returns that could make anyone and everyone the next Oracle Of Omaha {Warren Buffet} So here's the first in a series of articles on stocks.

COMPANY : SUZLON ENERGY
PRODUCTS : RENEWABLE ENERGY [ WIND TURBINES]
CURRENT SHARE PRICE : 25.15 as on 5 April 2012 with the Sensex at 17486.02
BOOK VALUE : 38.11

Suzlon Energy stands out as being the 5th largest company in terms of Market Share in the world. Source { Wikipedia and Fortune March 2012}. It stands out as being one of the few companies investing in meaningful renewable energy and is focused on delivering wind energy to consumers.

The reason Suzlon stands out is that it trades at 25.15 currently which is nearly 25% below it's book value. This is the only reason to buy Suzlon till the time that it is at par with it's book value.

The Networth of the company stands at 6794.48 crores as compared to 5604.31 crores in the previous year. Showing a substantial growth of nearly 21%.

Moreover, Suzlon's total income stood at 4840.25 crore while it's total operating expenses were 4312.45 as compared to 3066.78 crores and 3444.85 crores respectively. Clearly indicating a growth in Volumes and a decline in the company's operating expenditure.

Should you go and buy Suzlon?


HELL YEAH



NOTE : Investments in the stock market are governed by a variety of risks and factors. Each and every individual must consult his/her financial advisor before making any suitable investment. Please note that neither the author nor the company take any guarantee or responsibility for the financial advice given.




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