Investors need to be wary about Suzlon: P Phani Sekhar, Angel Broking

P Phani Sekhar, Fund Manager-PMS, Angel Broking, in a chat with ET now, gives his stock call


What do you think about Suzlon? it is a subsidiary, which has got that loan but after a while, there is some news on which Suzlon on a fundamental trigger is moving up in trade?

For Suzlon, certainly this is a respite but investors need to be a bit wary because they have not got equity. They have got a fresh loan. In a scenario where Suzlon was even struggling to arrange finances even in the form of loans, this is certainly a good news but certainly the order book scenario for Suzlon is not panning out the way most of us expected. Maybe if oil goes up by another 10-20%, there might be some ray of hope, at least sentimentally for the kind of business Suzlon is in but as a portfolio investor, I am not terribly enthused because the state of the balance sheet does not improve. It is just the borrower. It is just the lender who has changed.