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Hardik

Hardik Parikh  | Answer  |Ask -

Tax, Mutual Fund Expert - Answered on May 03, 2023

Hardik Parikh is a chartered accountant with over 15 years of experience in taxation, accounting and finance.
He also holds an MBA degree from IIM-Indore.
Hardik, who began his career as an equity research analyst, founded his own advisory firm, Hardik Parikh Associates LLP, which provides a variety of financial services to clients.
He is committed to sharing his knowledge and helping others learn more about finance. He also speaks about valuation at different forums, such as study groups of the Western India Regional Council of Chartered Accountants.... more
Sunil Question by Sunil on May 02, 2023Hindi
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I am holding suzlon 25000 @15/00 since long.Should i hold or switch in other stock.If switch,please suggest stock name.

Ans: Hi Sunil,

Thanks for reaching out to me regarding your investment in Suzlon. As a financial advisor, I can provide you with some information to help you make an informed decision.

Firstly, Suzlon has recently reduced its debt and is expected to have a good quarter. Additionally, their debtor days have improved significantly from 125 to 76.4 days, which is a positive sign.

However, there are some cons to consider. Suzlon has a low interest coverage ratio, and their sales growth has been poor over the past five years, with a decline of -12.3%. The promoter holding is also low at 14.5%, and they have pledged 80.8% of their holding. It's worth noting that their earnings include other income of Rs.2,487 Cr., which could impact their financials.

Moreover, the cost of borrowing for Suzlon appears to be high. The promoter holding has also decreased by -5.29% over the last three years, and working capital days have increased from -45.8 days to 64.6 days.

Based on the current market scenario, I would suggest that you reconsider your investment in Suzlon. While there are some positive signs, the negatives seem to outweigh them. If you decide to switch, I would suggest that you look into stocks that are more stable and have a proven track record of growth and profitability.

It's important to keep in mind that investing in the stock market comes with risks, and it's always advisable to consult with a financial advisor before making any decisions. I hope this information helps you make an informed decision.

Best regards,
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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