SUZLON FIANCIAL RESEARCH

Suzlon fiancial research



Suzlon Fiancial Research

Company Introduction and Market Scenario

Suzlon was formed in 1995 and has become the world's 3rd largest wind power supplier, controlling over 9.8% market share globally. In FY 2008-09, Suzlon had a market share of more than 50% in the Indian market. Additional power generation projects of 4400MW are under development in 8 states of India. Since last five years, Suzlon has financially maintained the highest year-on-year market share in wind energy sector.



Market Hypothesis

Suzlon has weak efficient market hypothesis in NSE. Its share prce does not reflect the actual value of the stock; giving margin to investor to earn excess revenue by speculation of share prices. Currently, share is being traded in range of Rs. 45-55 , whereas account books show that book value of Suzlon share is Rs. 35.90. Continuous variation has been observed in the stock prices of Suzlon with respect to change in SE index. However, in last two years Suzlon stock price touch the upper lock of Rs. 62, and lowest quoted price was Rs. 44.10. In comparison to this, book value of floated shares was Rs. 43.23, when share was being trade at Rs. 62.3; directly showing the weak efficient market structure of Suzlon (Suzlon , 2010).

Stock Excahnge of Country

Positive growth of 28% has been observed in the NSE stock indices in last two years. NSE CNX Nifty touched the the peak of 6233. 90 index in last two years from the base index value of 4270.30 in May 2009. Due to market correction and adjustment in speculated stock prices, a considerable decline has been observed in the past 12 months stock indices. Current closing of NSE Nifty Index 5486.35 shows the marginal increase of 28%, if we compare the base of change from last two years. ...