Even though the price is low, you must exercise some caution before buying Suzlon. You may remember that Suzlon had done a major default on its foreign currency loan payment back in 2012 and there is another $170 million this week. Not only the shareholders of Suzlon but also the bond markets are watching whether Suzlon will be able to service this debt as it is in a sharp cash crunch. In fact, the stock prices has corrected sharply on the belief that the company will not be able to service the $170 million debt. What is why the company is quoting at a price which is nearly a 10-year low price for the company?

There are also some business level challenges for Suzlon. The company shares surged few yes back when the government gave a thrust to renewable energy. But the government has since shifted to auction method for building wind projects and that has led to Suzlon losing market share and also market price in the stock markets. The company’s bank facilities are already cut to “Default” status by CARE so fresh funds are going to be hard to come by. The only thing that could work in their favour is if the talks to sell Suzlon to Brookfield actually work out? Ideally, you should avoid taking exposures to such companies.