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Updated on 31 Dec 2021
Adani Green Energy_ Suzlon is a 327.6MW onshore wind power project. It is planned in Gujarat, India. The project is currently in permitting stage. It will be developed in single phase. Post completion of the construction, the project is expected to get commissioned in 2024.
When I blogged the below post the share price was Rs 7. Today within a few days on 31 Dec 2021 the share price has jumped to Rs 10.20 a 32% jump!!!
Now back up your truck and buy Tata Motors shares which is now selling at Rs470. Tata Motors will cross Rs1,000 mark by next year (Dec 2022). I could be completely wrong but then Tata Motors looks to be the best Indian company to bet on at least for the next 10 yrs.
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Suzlon is not andu- pandu company. It is one of the biggest companies in the WORLD. Revenue is in billion Rupees (million US Dollars). Clean and Green power is the future. Usage of Coal, Diesel & Petrol will be curtailed in India and the World due to 2025 Target which was accepted and signed in the Paris Agreement.
Countries will be punished by Western Countries for not reducing fuel that contribute to Global Warming. Situation is like WAR for western nations and they are increasing the pressure. Trump had reduced the pressure to a certain extent but now Bidden is a person supporting the cause of Climate Change.
So the direction in the country and for the world …the future is WELL SET and Clean Energy companies WILL benefit in the LONG RUN (5 to 10yrs).
It became a loss making company because they wanted to expand into Europe and bought a few companies there. The European laws restricted Suzlon and finally Suzlon sold that arm (RENewPower/Senvion).The company was on the brink of closure due to this few years ago but overcame the problems.
If my memory serves me correct around Sept-2021 Suzlon cleared the last tranche of payments which will give it back its earlier agility.
Indian companies will always be penalized if they do business in other countries unless they open a headquarter in western country. Call it racist laws or patriotic law.
Tatas & Mahindra too had faced it… recently it was M&M’s Roxor vehicle. This is how the world operates. But now that Suzlon sold of their European Business (although at a huge loss) and paid off their major debtors it can operate with greater freedom.
The WORST DAYS of Suzlon are over for sure!
Why wait for an IPO-share when you can …
get the best of the best in under par Rs 10 share for Rs 7?
Make sure you buy at least a thousand shares because you don’t get many good companies at penny-stock prices. Even if you DON’T make money how much will you loose? Suzlon is a VERY GOOD “well-calculated-risk” share to buy with all indications of moving up in next 3yrs.
But the key is to hold good company shares for long term (5-10yrs) and not be too greedy.
You can also take a risky bet of expecting it to double in short term (1-2yrs). But Short-Term is like gambling. Stocks move up & down “fast” ONLY because of “manipulation” not on the performance of the company. Have you seen the movie Wolf of Wall Street?
But good companies draw good investors in the long run that they move up very slow and steady. So slow that it is very easy to miss it even for a seasoned-player
Right now the Suzlon is facing some NGO-protest in one of its installation sight because “WindFarms kill birds & creates noise” kind-of-protest. Wonder why these people don’t have problem with diesel-generator noise?
But this is not a major problem and are there in most windfarms… companies overcome such obstacles. Actually any big company has to face such problems mostly created by collabration of politicians & NGO’s to extract money from Companies.
After Dilip Sanghvi invested the company IS TURNING around SLOWLY. But the Wind Farm has so big capital investments that the effects will take time to show up in the books. Incomparison Solar Farms are very low capital intensive, quick & easy to deploy and don’t have protesters from Bird-Friendly Protesters and . On the other hand even the minor task of transporting Suzlon’s big windTurbines from factory to installation-site is a difficult logistical task.
But UNLIKE Solar Farms WindFarms have very small footprint on the ground.
Sanghvi is not a fool to invest in a company that will flop. He has invested lot more than ANY of us will ever invest.
It is exactly in the situation that Air India is today after Tatas bought it. It can ONLY go up… not down.
Also Suzlon is an ENERGY company and not a WIND-ONLY Energy company. It can make energy from Wind, Solar, or both as Hybrid. (They can also create energy using Thermal or even using clean fuel like CNG, Biomass, Ethanol etc).
Suzlon 2016 is is also installing solar power.
Suzlon can install solar on its existing or new farm so the existing farms can double its capacity are less than half the costs.
Recent offers by the govt for BIG solar Power players are very EXCITING for big players like ADANI, TATA, Suzlon etc
Suzlon will in the future not only generate energy but also STORE electricity.
As battery prices fall… Battery prices are 50% of what it was 10 yrs ago!… Suzlon will be able to EXTRACT more profitability from even its EXISTING farms.
Hybrid (wind+solar) energy makers generate almost double the power in comparison to OnlyWind or OnlySolar.
I cannot see any negative in the future for Suzlon except that the govt today is giving it same priority as to solar power. Its wind business might grow slowly but its Solar power will grow fast.
The best is to ask Google. “Is Suzlon a Good Share to buy?” The Artificial Intelligence of Google is so high that it will seldom give you the wrong answers. Not only with Suzlon… do it with all Shares… It will give PERFECT answers.
I couldn’t find even 1 negative answer from Google regarding Suzlon.
