Indiabulls Securities Ltd has maintained a ‘Hold’ rating on Suzlon Energy Limited stock with a long term target above Rs 275.

Suzlon Energy is now making cautious efforts to expand its market share, develop its business, regulates its asset quality and lay more pressure on customer service to perk up its profile and combat increasing competition.

According to Indiabulls, investors who have already purchased the stock can go long with the aim of making a big profit.

On the other hand, interested investors can purchase the stock on declines with a strict stop loss of Rs 195. The share price has seen a 52-week high of Rs 460 and a low of Rs 174.50 on BSE.

Any decline in the stock price corresponding to the broad market can be used as a prospect to take fresh exposure.

As on May 17, 2008, the company’s order book stood at 3,454 MW of confirmed orders, translating to around USD 4.3 bn or Rs 183 bn. Out of this, the international order book stood at 3,294 MW with an average realization of Rs 52.9 mn per MW, which is significantly higher than the current realizations.

Presently, the value of outstanding orders stands at 1.3x FY08 revenues.

Suzlon has purchased Areva’s 30% stake in REpower for USD 540mn. This agreement has consolidated its total holding in REpower to about 66%.

Suzlon Energy is among six others who entered into a deal with the US government to help US generate 20% of its electricity by using wind power by 2030.

The outlook of global wind energy is very strong with an expected average growth rate of 20.6% over 2007-2012.

Suzlon is likely to obtain profits from the emerging opportunities.

Edisson Mission Energy has claimed that the 144-foot-long windmill blades it freshly purchased from Suzlon have started to split at three wind sites it runs in the Midwest.

Currently, Suzlon holds 66% of REpower and anticipates buying the extra stake after Martifer quits in Q1’09.

Suzlon has decided to augment its capacity to 5,700 MW by the end of FY09. Moreover, to attain backward integration into cast and forged steel components, the company is making a foundry of 120,000 metric tonnes and a forging unit of 70,000 metric tonnes with machining facilities. These plants will start its operations in separate phases beginning July 2008 and should reach full utilization levels by March 2009.

Moreover, the gearbox capacity is also expected to reach 14,300 MW by 2012, which will decrease the persisting capacity crunch.