Suzlon Energy: Merger News & Balance Sheet Transformation:-
Discuss some important companies and some important updates related to them, The name of the first company is Suzelon Energized. Disclaimer that all the company related news and updates that we will cover are only for educational purposes and for learning. Do not consider this as any kind of investment advice. You can also do your own research and analysis. About some important news and updates related to Suzelon Energy. About last day then we were hearing a very important news related to Suzelon Energy.
Suzlon Energy Merger with Subsidiary Approved by NSE & BSE:-
Because of which you could also see Suzelon remaining in focus. So currently we are hearing the news that Suzelon had recently planned a merger with its subsidiary company. Now for this, he had asked for approval from both NSC and BS and if seen, he has got the approval from both NSC and BS. So what is the exact name of its subsidiary company? So you will see the name here. You can see that Suzuelon Global Services which is its subsidiary, i.e. Suzelon Energy is the parent company and it is planning to merge with its subsidiary, i.e. Suzelon Global Services and for this, it has got the clearance from NSC and BSE. In simple language then the company wants to improve its balance sheet.
Suzlon’s Balance Sheet Turns Around, But Concerns Remain:-
So look, it has also been mentioned here that the company is expecting that as a result of this merger, its balance sheet will become cleaner and after that, we will see the company’s ability improving. Of what? To attract dividends and investors. So these are all the things that the company has mentioned which it is expecting from this merger.About balance sheet, then you can also understand some important points related to the balance sheet. So if we look till the financial year 2022 and till 23, we see the reserves of the company in negative. That means, as per the balance sheet, the company was in very bad condition. After that we saw the company’s performance slightly better in the market. The company has consistently made profits in 23, 24, 25 in the last 3 years. We also saw the company’s reserves increasing.
Discrepancy Between Net Profit and Cash Flow Raises Questions:-
Can be seen turning from negative to positive. And the debt that the company had in the financial year 22 was Rs. 6400 crores, if you look at the current time, it has come down to Rs. 323 crores. So the company has also repaid the loan. Have also changed our reserves from negative to positive. But friends, let me tell you a very important thing which will matter a lot to you if you are an investor in this company. Now, as I told you, the company has consistently made profits on 23, 24 and 25 days of the financial year. How much did you earn in 23? 2887 crores. 660 crores done in 24 and how much did you do in 25? 2072 crores. Ok? When we look at the cash flow statement of the company for 23, 24 and 25, how much cash did the company generate in 23 ? About Rs 491 crores. How much did you generate in 24 ? 80 crores. And how much did you generate in 25 ? 1092 crores. Even if you add these three numbers, you will not get to see the number Rs 2000 crore. That means, the company is not getting exactly the amount of money that it is showing to us. About income minus expenses, we get the operating profit of the company, what was it in 25? 1857 crores. After the profit reported by the company after income minus expenses, a lot of taxes etc. are also considered. After which the net profit of the company appears less than the operating profit.
Spike in Receivables Indicates Delayed Cash Inflow:-
But here we are seeing numbers more. Now what is most visible is the net profit of the company. We assumed it but is the company getting that much money ? then no. If we about the company’s profit from operations, what was that number in the financial year 2025? Of Rs 1984 crores. And how much profit did the company show? The company did not generate that much profit from operations which was Rs. 2000 crores i.e. its net profit, but if we look at the Rs. 1984 crores that it did generate, then only Rs.1092 crores came into the company’s pocket. Because we have seen a sudden spike in the company’s receivables. It has increased from ₹ 677 crores to ₹ 7 crores. Receivables means that when any company sells its product, the company does not get the money immediately. This means that the company showed revenue and profit in its quarterly results. By selling the same product. Even though the company has n’t received the money yet. So whenever it comes,you will see it in the cash flow statement of the company. It has not arrived yet. Because of this, the company’s receivables appear negative by more than Rs 2000 crore. And how much time will it take for receivables to be converted into cash ? You can also understand this from dater days.
Despite Profit, Suzlon Hasn’t Paid Any Dividends:-
About the financial year 2025, we are seeing debt days of 130 days. Debt days basically tells us that whatever product a company sold to anyone, in how many days the money is coming to the company. So in 2025 the average was 1030 days. There were 102 days in 24. 23 had 72 days. The date days are continuously seen increasing and not decreasing. It would have been a good thing if you saw it decreasing. So no doubt. The things that the company has mentioned that the company wants to clean its balance sheet and you can say that it wants to improve its ability for dividend or to attract investors, we can see that somewhere in the balance sheet of the company and if we talk about dividends, then the company has not paid any dividend in 23, 24 and 25.
Waaree Energies Expected to Post Strong Q1 Results: Kotak:-
The name of the next company is Wari Energies. About Wari Energies, then this company will report the results of quarter one after some time. In fact, we will see the results not only of this company but also of many other companies. But some expectations have been released in the market regarding the results of this company and that expectation has come from Kotak Institutional Equities in which they have said that they are expecting that we may see very strong results of Wari Energy as well as Premier Energy. Now he has highlighted its multiple positive factors related to the solar manufacturing sector. About capacity expansion then we see it increasing. We are seeing their pricing remaining stable and we are seeing a continuation of good growth factor in solar capacity and the production facilities are also being continuously expanded and if we talk about the total positive outlook of this sector, then that too looks positive to us.
Waaree Margins Could Dip Despite Revenue Growth:-
So all these things have been mentioned by Kotak Institution. But what exactly could the number be according to them? If it is, let’s take a look at that. So, in the revenue that the company will report in Q1, we may see a growth of 32% on year-on-year basis. This is the expectation of Kotak institutions. And if we talk on Q1 & Q basis, we may see a growth of 12% there. And margins have also been discussed here. The company’s margin can improve by 470 basis points on year on year basis.About the last quarter, the revenue reported by the company showed 36% growth on year on year basis. This time the expectation is not 36% but around 32%. That means, if we compare these numbers with the last two quarters, then this time the numbers will be weaker than those two quarters.By 4.7% i.e. 470 basis points. So even if we see an improvement of 470 basis points, the margin will still be in the range of 20 to 21 which will be less if we look at it as per the previous quarter.
Waaree Q1 Shareholding Pattern Shows Increased FII/DII Interest:-
According to Kotak Institutions, this time the results of the company that we will see may be good on year on year basis. But on Q&Q basis we may see flat results. Or don’t be surprised at all if we see the company’s profits falling slightly. Because the data which has been mentioned on year on year basis, we cannot compare it on Q & Q basis. The expectation is for 12% growth in revenue on Q&Q basis, which is okay. It will grow and we will see revenue of more than Rs 4000 crore. But if about margins, the margin will improve by 4.7% on year on year basis. This is the expectation. If you compare it then the mark will be less than 23%. So it is possible that we may see revenue growing by 12%.
But the company’s profit may be reported to be less than 12% growth on Q&A basis. So keep this thing in mind if you are an investor in this company, apart from this, friends, the latest Q4 share holding pattern update of this company, sorry, not Q4, the share holding pattern of Q1 has been updated. Where the promoter’s stake is visible almost as it is. But we are seeing FIS stake going up slightly by about 2% and DIS stake is seen going up by about 0.4% and public stake is seen going down. So you can note down all these things.We discussed a lot of important data regarding Wari Energies. But yes, do not consider all these things as recommendations to learn them only for educational purposes.
Varun Beverages (VBL) Faces Pressure to Justify Valuation:-
The next company Vern Vbjje Led. No doubt, the performance of Vernerjes that we have seen in the last few times has been a bit disappointing. A decline of around 33% has been shown in this company. At one time the company was at a price to earnings multiple of 100. If you look at the current time, you will see around 50.
If you look at the valuation, we have seen corrections of almost 50% from the top level. There was a 50% correction in the valuation but the stock did not correct that much because during this period we also saw the company’s earnings increasing. But still the results of the upcoming quarter will be very important for VBL. Because the company is seen at a price turning multiple of 50, but to justify that, it will be good only if the company’s results are seen growing at 25-30% on year on year basis. Now, about quarter one, here we saw the onset of monsoon quite early in many states, so because of this, whichever company works in the soft drink market, whether we talk about Coca Cola or Cola or PepsiCo, they will not get to see that level of benefit in business in those states where we saw the monsoon arriving earlier. So because of this, the results of quarter one will be very important for Weebly and looking at the results and the competition, the market can say that it has broken the valuations but now ultimately the results will matter, if they look good then somewhere the market can also counter all these things a bit, keep this thing in mind, but yes all these things are only for educational purpose, do not consider this as a recommendation, you can do research on the basis of all these things.
Pavan Auto Industries Announces First-Ever Stock Split (1:10):-
Next company has recently announced a split in the ratio of 1:10 which is the first split in the life of the company. Now this is a company belonging to the auto sector. So what is the name of the company? So the name of the company is Pavan Auto Industries. So if you are a shareholder of this company then this news can definitely be important for you. If you are not a shareholder, you can ignore it.