Not Suzlon & Inox Wind, SMIFS' Sharad Avasthi prefers this stock from renewable energy space
Not Suzlon & Inox Wind, SMIFS’ Sharad Avasthi prefers this stock from renewable energy space
Sharad Avasthi, Head of Research (PCG) at SMIFS, on Monday said the potential for Suzlon Energy Ltd and Inox Wind Ltd stocks are very high. “The only concern is the regulatory change (re-bidding) that has happened. There were some rumours that there could be a reopening of re-bidding clause. This could be negative for wind power companies. For Suzlon and Inox Wind, the current valuations are more or less capturing every upside that they can report over the next one-and-a-half to two years,” told Business Today TV.
It is better to go for Sterling and Wilson Renewable Energy Ltd compared to these two companies, the market expert suggested. SW Solar shares jumped 5 per cent today to hit their one-year high level of Rs 714.55.
“We would like to inform that, as intimated by Union Bank of India (lead banker to the consortium), all the lenders of Sterling and Wilson Renewable Energy have confirmed that the company has fulfilled all its obligations of loan payments (without any restructuring or discount) as envisaged in the inter creditor agreement and resolution plan and further is also not in default with any of the lenders as on 180th day from end of review period. Consequently, the resolution plan as approved by all lenders is considered fully implemented,” the firm stated in a recent BSE filing.
On technical setup, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock’s 14-day relative strength index (RSI) came at 75.62. A level below 30 is defined as oversold while a value above 70 is considered overbought.
Turnover on the counter came at Rs 24.90 crore, commanding a market capitalisation (m-cap) of Rs 16,664.01 crore. Around 3.50 lakh share were last seen changing hands on BSE. The figure was higher than the two-week average volume of 3.02 lakh shares.
SW Solar’s stock has a price-to-equity (P/E) ratio of 190.51 against a price-to-book (P/B) value of 6.20. Earnings per share (EPS) stood at 3.74 with a return on equity of 3.25.
Meanwhile, Suzlon Energy shares were seen 1.21 per cent lower at Rs 40.85 today. Bourses BSE and NSE have put the securities of Suzlon under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
And, Inox Wind’s stock was last seen 1.95 per cent lower at Rs 602.90.
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