Morgan Stanley - Suzlon
CMP - 1227
Target - 865
Valuations: At Rs 1,228, SEL trades at P/E of 26.6 and 21.2 times our F2007 and F2008 estimates. We retain our earnings estimates over F2006-08. While the growth momentum is strong, we believe that that's captured in the current valuations and hence retain our Equal-weight
rating. For F2006, SEL would be paying dividend of Rs 5 per share to its equity shareholders and Rs10 per share to its preference shareholders