The data given below relates to monthly stock prices of Suzlon Energy Limited., for the years 2006and 2007 respectively.(Rs.)
MonthsClosing Price (2006)Closing Price (2007)
January1,163.701,142.35February1,093.301,037.05March1,302.801,001.95April1,282.451,187.65May976.251,285.35June1,048.001,493.55July1,080.601,271.25August1,203.351,265.35September1,236.051,446.70October1,309.551,973.65 November1,446.651,895.95December1,304.351,935.75You are
to observe whether the changes in stock prices are independent or not, usingauto-correlation test.
Ms. Sheetal, a Chartered Financial Analyst, has opined that the Suzlon Energy Limited (SEL) can be valued using Relative Valuation Model based on the following parameters:ParametersWeightsPrice to Earning Ratio 0.25Price to Book Value Ratio0.70Price to Sales Ratio0.05Following is the information pertaining to its peer group:(Rs.)Measures of relativevaluationSNSTextilesIndusFilaGrabalAlok ShriLakshmiSarlaPerformanceSales per Share2.26162.0653.58447.13161.29Book Value per Share 0.1467.8353.58115.3886.53Earning per Share 0.1613.493.2425.2217.58Current Market Price per Share3.7964.549.2530.348.5Share price of SEL as on 31
March, 2007 was Rs.1001.95.Using
, calculate the value per share of SEL as on 31
March 2007 based onRelative Valuation Model and comment on the same.
Wind energy market is growing at the fastest rate among the other renewable energies. SEL hasearned ISO 9001:2000 certifications for its design, operation and maintenance services. In light of this, discuss the opportunities for the SEL in global wind energy industry.
The activities of SEL are diversified in domestic as well as international markets, from sourcing of inputs to marketing of finished goods. Owing to the various global and domestic dynamics, explainthe various risks to which SEL is exposed to.
Suzlon Energy Limited (SEL)
“The increasing energy crisis and climate change concerns have made renewable power a key priority for people,