If you look at the end of the PDF, the consolidated result, It seems the company actually has done better? comparing the in-audited and audited result in previous FY.
A decline in net profit doesn’t mean that the results are bad. There has been a lot of news flowing about the headwinds faced by the wind energy sector due to the change in tariff payment mechanism by the Government and even globally the sector is facing some headwinds. So Suzlon is not going to be completely insulated and this decline in net profit was expected.
Infact, Suzlon was expected to face a consolidated net loss for the quarter and maintaining it in the positive side itself feels good. Hope these sectoral headwinds start subsiding from the start 4Q FY18, yet I need some more clarity before any aggressive investment here.
But from a trading perspective, these numbers are definitely not bad and the stock can be held on with a stop loss at 14.5 since the negatives are already factored in the price. I personally feel that the stock may react positively on Monday.
Just because the result wasn’t worse. Clearly the decline in prices over the past week suggest that many have exited the counter because of the uncertainty before the results. Atleast some of them may re-buy the stock since the price seems reasonable. Also some short covering is bound to happen if the stock finds support at these levels. So prices may get pushed in the green. I’m not telling it will happen but it’s just my prediction.
