Suzlon shares drop amid financial strain
By siliconindia   |   Thursday, 18 June 2009, 02:29 IST   |    3 Comments
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Suzlon shares drop amid financial strain
Bangalore: When the markets closed today, Suzlon Energy (SUZLON) found itself among the top losers as the shares of Suzlon dropped by over six percent and ended the day at Rs 112.25. After opening the day at Rs 120, the stock touched a high of Rs 122.70 from where it fell to a low of Rs 110.05. A total of 18,939,643 Suzlon shares were traded through the day. Today, the world's third largest windmill maker Suzlon had announced that it is facing financial problems and expects a flat year ahead. According to Economic Times, the company which is reeling under debts is evaluating various options to optimize its debt-equity ratio. The company that gained reputation by aggressively catering to the western markets has been facing economic instability in the wake of overseas buyouts. Adding to the problems, Suzlon is also suspected to have cajoled state governments into helping them acquire land for their wind farms at concessional rates. The Maharashtra government has recently ordered a high-level inquiry into Suzlon's land deals in the past 2-3 years at Dhule and Nandurbar, where it is setting up the world's largest wind energy park. Out of the 23 analysts following Suzlon, the consensus recommendation is hold, with six analysts giving a hold rating and another six analysts recommend buying the stock.

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