JP Morgan downgraded country's wind turbine maker Suzlon Energy to "underweight" from "neutral" and cut its target price on the stock to Rs 20 from Rs 61.
Foreign currency convertible bonds (FCCBs) repayment due next fiscal year is an overbearing concern for equity shareholders, JP Morgan said in a note, adding sources of cash identified by the management to service the repayment "entail significant risk of disappointment."
The company needs to repay $360 million in June and $209 million in October. At 11.14 am, the stock was up 2.55% at Rs 30.20 in a Mumbai market which was up 1.21%.
